As we head to the end of 2025’s third quarter, a retrospective look at the data around some of this year’s ETF launches reveals some key trends in the industry.
ETF Launches by Net Inflows YTD
According to ETF Database data, more than 500 ETFs have launched in 2025 so far. There are, of course, numerous ways to filter ETFs and screen funds. Filtering by year-to-date net flows, just two ETFs have seen more than $1 billion in net inflows per ETF Database data. The leveraged Microsectors FANG+ 3 Leveraged ETNs (FNGU) fund was the only ETF to pick up more than a billion YTD. The product, which offers 3x leveraged exposure to the so-called FANG stocks, added $1.01 billion as of September 23.
Rounding out the top five on a flows basis are three active and one passive ETF. The active Tema S&P 500 Historical Weight ETF Strategy ETF (DSPY) added $732 million YTD. The passive iShares MSCI World Small-Cap ETF (WSML) gained $643 million. Meanwhile, the active Capital Group U.S. Small and Mid Cap ETF (CGMM), pulled in $638 million. Finally, the active VistaShares Target 15 Berkshire Select Income ETF (OMAH) has added just over half a billion YTD with $528 million per ETF Database data.
While those are significant amounts, they pale in comparison to 2024’s YTD flows star in the same time frame. Last year’s slew of crypto ETF launches dominated the new additions, with the iShares Bitcoin Trust ETF (IBIT) adding more than $20 billion by this time last year.
ETF Launches by AUM
Of course, some ETFs leap onto the market with high AUM totals already. Only FNGU, with $2.4 billion, from the top flows group also finds a place in the top five new ETFs by AUM. The iShares Dynamic Equity Active ETF (BDYN) comes in with $2.1 billion. The iShares High Yield Muni Active ETF (HIMU) launched in February and has $2.1 billion in AUM. The JPMorgan Active High Yield ETF (JPHY) launched in June and sits at $2 billion in AUM. The iShares Disciplined Volatility Equity Active ETF Trust Unit (BDVL) rounds out the top five 2025 launches by AUM with $1.2 billion.
What trends, then, can be found in 2025’s ETF launches? Active ETFs make up nearly four out of five launches, 389 to 119 per ETF Database. In these top five ETF lists, active also makes a strong appearance. HIMU, BDVL, JPHY, and DSPY all fall into that “active” category, a strong showing in the top five ranked by AUM. Active funds also have a healthy presence among the top five ETFs by flows, outnumbering the passives in the list.
In terms of equities segments, small caps stood out. Meanwhile, in fixed income, investor demand for high yield and more adaptive, flexible approaches has been clear. The former may benefit from rate cuts or a value lean, while the latter could also be due to falling rates.
Overall, the strongest 2025 ETFs by flows and AUM appear to focus less on growth and more on durable performance. DSPY, for example, provides an alternative view into the S&P 500 to address concentration risk. BDVL, meanwhile, aims to offer solid risk-adjusted returns with its active approach, fixed income, derivatives, and global equities.
Taken together, the popular funds this year offer plenty to consider. Each year’s new ETF launches tell a story, and 2025’s funds speak to an increasingly active — and advanced — ETF world.
A message from Advisor Perspectives and VettaFi: To learn more about this and other topics, check out some of our videos.
Read more commentaries by VettaFi
