ETFs Enter 'Overdrive' In 2025, Trackinsight Survey Reveals

KUALA LUMPUR, May 13 (Bernama) -- Trackinsight, a global leader in exchange-traded fund (ETF) research and analytics, has released its Global ETF Survey 2025 Report, highlighting regional analysis covering major developments in Europe, Asia, and North America.

The report also unveils key trends across active management, fixed income, thematic investing, environmental, social, and governance (ESG) strategies, and the accelerating rise of income- and options-based ETFs, among others. It also features over 80 forward-looking predictions from industry leaders.

According to the report, respondents primarily turn to ETFs for diversification, cost efficiency, and ease of trading. When selecting products, they prioritise performance, fees, liquidity, and the reputation of the provider, while ESG considerations tend to be secondary.

In addition, the rising use of active ETFs is driven by lower fees compared to mutual funds, greater transparency, and the potential for outperformance, with nearly 70 per cent of respondents planning to increase their allocations to active ETFs over the next six months.

Corporate and government bond ETFs are the top choices, with respondents showing a balanced preference between active and passive strategies, in which 80 per cent of respondents also plan to boost their exposure to actively managed fixed income ETFs in the coming months, according to a statement.

Furthermore, respondents use thematic ETFs mainly for diversification and to make long-term strategic investments, particularly in disruptive technology and digital infrastructure. Liquidity, cost, and risk-return profiles are the key selection factors, and more than half of respondents intend to increase their allocations to thematic ETFs.

The survey also reveals that investments in ESG ETFs are largely driven by personal convictions and environmental priorities. However, greenwashing and transparency concerns remain major challenges.

Titled ETF Industry on Overdrive: Shifting Gears, Breaking New Barriers, the report captures evolving trends in the global ETF space, drawing from insights provided by over 600 professional investors and is powered by Trackinsight’s extensive database of over 12,000 exchange traded products (ETPs).

A subsidiary of Kepler Cheuvreux, Trackinsight is a global platform for professional ETF investors, delivering top-tier data, tools, research, and expertise for advanced fund selection and portfolio optimisation.

-- BERNAMA