ETFs on the Rise: Trends and Transformations

This chapter explores the remarkable growth of the ETF market in early 2025, highlighting record inflows exceeding $200 billion, especially within fixed income and innovative alternatives. It focuses on the significant rise of active ETFs capturing nearly half of the year-to-date inflows, revealing changing dynamics in investor preferences and portfolio construction. The discussion emphasizes Fidelity's insights into the evolving landscape of ETFs, showcasing how these trends reflect broader shifts towards active management and the integration of ETFs into overall investment strategies.