Global outlook for ETFs for 2025

This week ETF Express was pleased to bring you this year’s Global Outlook for ETFs, in partnership with Harbor Capital Advisers. Our panel of ETF selectors had concerns regarding last year’s all dominating active ETFs.

Raymond Backreedy of Sparrows Capital writes that active ETFs are likely to gain further traction, particularly in the US, ‘though we believe this trend is largely driven by marketing rather than proven long-term performance’. Another wrote that they might be ‘confusing’, although one did note that ETF transparency worked for them over similar strategies in a mutual fund format.

The US can rest easy in its role dominating the ETF industry according to our panel, although let’s hear it for Luke Kahnert of Raymond James (Canada) who writes: "Although the Canadian ETF industry is smaller, what impresses me is its consistent growth and innovation year after year."

In terms of trends over 2025, the panel predicted a wave of ‘Trump trades’ as the new President settles into office. Themes such as AI and technology are also mentioned, as is a note from RBA’s Henry Timmons that: "The reindustrialisation of America – also known as the American industrial renaissance, reshoring, near-shoring, or infrastructure rebuilding – may represent the most significant secular investment theme today".

All-important distribution was also discussed. David Daly of UK-based New Horizon writes: "Many of our clients are European financial advisers and we are seeing increasing willingness to integrate ETFs into portfolios. Often, the advisers are using online platforms where we are seeing much more frequent approval of ETFs as investment options."

Algo-Chain’s Irene Bauer also notes an increase in ETF take-up in Europe. "And there has been a clear pick up from European retail investors in ETFs and savings plans," she says.

To read the Global Outlook report, please follow this link.

January means just one thing for the European ETF service provider community. We have opened the nominations stage for European ETF service providers ahead of the European awards, which this year will be held on 20th March in London. Get nominating for your favourite firms now by following this link.

Voting will open on the nominated firms and the issuer categories on 27th January.

Beverly Chandler, Managing Editor

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