ETFs continue to reshape the investment landscape, and our latest Global ETF Investor survey provides key insights into this ever-evolving market. Now in its 12th year, BBH’s survey captures the perspectives of ETF investors in US, Europe and Greater China, offering a deep dive into the trends driving ETF growth and innovation.
What's inside this year's survey?
Unstoppable growth: ETFs are no longer a trend but here to stay. 96% of surveyed investors plan to increase their ETF allocations in the next 12 months, a marked increased from 82% last year. The versatility of this wrapper was highlighted throughout the survey.
Evolving strategies: From smart beta and active ETFs to crypto and alternative investments, the ETF wrapper is expanding beyond its passive roots. Three-quarters of allocators expect to increase their investment in cryptocurrency-focused ETFs over the next 12 months, with demand highest in Asia (80%), and the US (76%), in contrast to Europe (59%).
Global trends and volatility: investors are using ETFs to navigate uncertainty, manage risk and achieve potential long-term growth. More than a quarter (29%) of allocators expect to invest in buffered ETFs over the next year, just one point lower than 2024’s results. Appetite for fixed income is equally strong, at 29%, a noted increase from last year.
Institutional and retail adoption: Europe’s ETF market is celebrating 25 years, with increasing adoption among retail investors and supportive regulatory changes.
Investors are looking beyond price: as ETFs are moving beyond its passive beginnings, we see that cost is less prominent in investor’s minds, with only 30% of respondents ranking expense ratio as one of their top three considerations when looking at an ETF.
The flight to active ETFs continues
Against an increasingly uncertain macroeconomic backdrop our survey suggests investors are preparing to reposition themselves in volatile markets, using actively managed ETFs to seek potential relative outperformance.
After a record-breaking fundraising year for actively managed ETFs, with net inflows of $374.3 billion1 all signs point to active ETFs growing their market share.
While once synonymous with passive investing, ETF markets are changing. ETF inflows saw a broadly 50/50 split between active and passive products in the first month of 2025.
Strikingly, almost all - 97% - of investors we surveyed said they planned to increase their current exposures to active ETFs in the year ahead.
Plan to increase active ETF allocations, 2024 vs 2025
Title of chart is Plan to increase active ETF allocations
Shows 2024 vs 2025. 78% in 2024 and 97% in 2025.
Our survey sees investors leaning towards active products to help access professional investment strategies, seek relative outperformance, and help manage market volatility.
While investors are buying more active ETFs, our survey suggests they are simultaneously reducing their exposures to other products, with over half our respondents (53%) planning to sell index-based ETFs as they dive deeper into active ETFs.
Why it matters
Whether active or passive, and whatever underlying assets their investors favour, our survey shows that ETFs are no longer just an investment option, they are a fundamental tool for modern portfolio management. With record inflows in 2024 and compelling market performance, the ETF market looks set to reach new horizons and no let-up in its innovation, creativity and investor appeal. Understanding these trends can help you stay ahead in an evolving market.
For over 20 years, BBH has been a leading provider of ETF services for the largest and most established global asset managers as well as new asset managers entering this exciting and growing space.
BBH provides comprehensive accounting, administration, custody, and transfer agency solutions to power our client’s ETF business. Our consultative approach helps guide clients with regulatory, listing, and sales and distribution strategies for an impactful product and successful market entrance.
Do you want to know how BBH can help you? Get in touch with one of our ETF experts.
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1ETFGI, Global Active ETF industry insights report, January 2025
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