The never-ending wall of investor money piling into ETFs has been key industry talking point for several years. With post-financial crisis monetary policy from central banks bolstering stock markets for more than a decade, investing in low-cost passive solutions has seemed like a no-brainer.

Yet, in a world where this is no longer the case, the popularity of ETFs remains meteoric. According to Q3 2024 flow data from Morningstar, 2025 global ETF flows are on track to eclipse $1trn in flows, notwithstanding market shocks.

ETFs are no longer simply passive products which track a well-known index. With a huge increase in appetite for active ETFs over recent months, as well as high demand for thematic ETFs, the industry is deftly adapting to suit clients’ needs. But with the market outlook becoming increasingly uncertain, and with regulatory headwinds including the ability to buy fractional shares remaining stubbornly in place, what does the future hold for the asset class?