Dow Jones Indices: 59
Growth Drivers

Considerable Industry Runway in the Active to Passive Switch

Index Funds Have Grown as a Share of the Fund Market

(dollars in trillions; percentage of long-term total net assets, year-end)

Index Domestic Equity Fund Share of U.S. Stock Market Is Small

(percentage of U.S. stock market capitalization year-end)

Source: Investment Company Institute and World Federation of Exchanges

Notes:

Totals may not sum to 100% due to rounding

Data exclude money market funds. Data for ETFs exclude commodity ETFs

The Active-Passive Shift Continues in Equities, with Passive Fixed Income Products Gaining Flows (vs Active) in Recent Years

Cumulative Flows to U.S. Equity Mutual Funds and Net Share Issuance of U.S. Equity ETFs

(dollars in billions) (January 2015–December 2024)

-4000 -3000 -2000 -1000 0 0 1000 2000 3000 4000 2,000 1,000 0 (2,000) (1,000) $4,000 3,000 (4,000) (3,000) ’15 ’16 ’17 ’18 ’19 ’21 ’22 ’23 ’20 ’24

Source:  Investment Company Institute. 2025 Investment Company Fact Book:  A Review of Trends and Activities in the Investment Company Industry 

 

Note:  Mutual fund data include net new cash flow and reinvested dividends; ETF data for net share issuance include reinvested dividends

Rapid Global ETF AUM Growth Expected to Continue

(dollars in trillions)

Source:  PwC ETFs 2029: The path to $30 trillion – Global ETF Survey

Note:  Global ETF AUM growth represents June 2024 to June 2029 forecast

Passive investing has democratized market access, revolutionizing the way investors access financial markets and participate in market performance