Global survey shows retail surge, AI adoption and tokenization reshaping ETF playbook.
Exchange-traded funds are entering what could be their most transformative stretch yet and could mean a marketplace that looks markedly different by the end of the decade.
Global ETF assets climbed to $19.5 trillion in 2025, buoyed by strong markets and record flows, and a sizable share of industry executives believe the next five years could bring another dramatic leap. More than one third of respondents to PwC’s latest global survey expect ETF assets to reach $35 trillion or more by June 2030, more than double mid-2025 levels.
The report, based on responses from 72 global executives, outlines a market increasingly shaped by active management, digital assets, retail channel expansion and rapid advances in artificial intelligence and tokenization.
The ETF industry gathered a record $2.1 trillion in net inflows in 2025, nearly 3.5 times the amount directed into mutual funds, helping fuel a 33% annual increase in global ETF assets. At the same time, more than 100 new ETF issuers entered the market last year, intensifying competition.
That growth is attracting new players, but scale alone won’t guarantee profitability. Survey respondents pointed to product conversion including shifts from mutual funds and separate accounts into ETF wrappers as a meaningful driver of future expansion. Many also see ETF share classes attached to existing funds as a potential accelerant where regulators allow them.
For advisors, the conversion trend could translate into more client conversations about tax efficiency, portability and cost, particularly as regulators in the US have recently opened the door to additional ETF share class structures.
Active ETFs move center stage
One of the clearest shifts is the continued ascent of active ETFs. Global active ETF assets reached $1.7 trillion by the end of 2025, and launches last year rose 72% from 2024. For the first time, active launches matched passive launches in number.
Looking ahead, 60% of respondents expect global active ETF assets to at least double to $4 trillion or more by 2030.
In the US, where active ETFs account for roughly 11% of ETF assets, 83% of new ETF launches in 2025 were active strategies. Nearly three quarters of US respondents anticipate rising demand for active ETFs over the next two to three years.
For advisors accustomed to blending active mutual funds with passive ETFs, the continued build-out of active ETF lineups may simplify portfolio construction, particularly inside model portfolios and retirement accounts.
Digital asset ETFs gain traction
Digital asset ETFs have vaulted into the top tier of expected demand. Survey participants ranked them among the three most sought-after ETF categories over the next two to three years, alongside global equity and fixed income products.
Globally, 46% of respondents said they would launch a digital asset ETF if permitted by regulators, up from 36% a year earlier. In the US, a favorable regulatory backdrop helped drive a record 110 digital asset ETF launches in 2025.
More than three quarters of respondents believe the coming intergenerational wealth transfer will have a significant impact on ETF growth over the next decade, and nearly 60% see it as a catalyst for product innovation.
The retail channel is poised to play an even larger role in ETFs with more than 90% of respondents expect meaningful demand from retail investors in the next two to three years.
Access to broker-dealer platforms and investor education were cited as critical levers for attracting retail assets. Savings plans and retirement accounts also represent fertile ground, particularly in Europe, where policymakers are encouraging greater capital markets participation.
For advisors, that combination of policy tailwinds and investor appetite could mean broader ETF usage across tax-advantaged accounts, managed portfolios and hybrid fund structures.
Tokenization and AI reshape operations
Beyond product demand, technology is emerging as a structural force.
Nearly 80% of survey respondents believe tokenization will significantly or moderately expand global reach and enable 24/7 accessibility in the ETF market over the next two to three years. A similar proportion see it increasing direct investor access to more asset classes. More than three-quarters believe it could drive fractional ownership and lower investment thresholds.
Meanwhile, over 80% expect artificial intelligence to have a significant or moderate effect on ETF operations, with applications ranging from portfolio rebalancing to compliance automation.
For advisors, those shifts may eventually translate into lower costs, improved liquidity and more customized model portfolios — as AI tools increasingly support hyper-personalized allocations aligned with client goals and risk tolerances.
More crowded, more customized future
Regionally, optimism runs high. Roughly 38% of US respondents see domestic ETF assets reaching $25 trillion or more by mid-2030.
In Canada, nearly 70% expect ETF assets to hit at least $1 trillion by that date, while more than a third of European respondents foresee assets climbing to $5.5 trillion or higher. In Asia-Pacific, one-third expect assets to reach at least $5 trillion.
But with growth comes pressure. Fee compression, operational modernization and the rise of white-label ETF platforms are raising the bar for new entrants and established managers alike.
Overall, the report highlights that the ETF toolkit is expanding rapidly, not just in size, but in sophistication. As active management, digital assets and technology-enabled customization converge, advisors who understand the evolving landscape may be best positioned to translate innovation into client outcomes.