Citigroup projects US ETF assets to surge past $25 trillion by 2030 amid active management boom

US ETF assets are set to double to $25 trillion by 2030 according to Citigroup. Learn why active ETFs and tax efficiency are driving this $40 trillion trend.

By: AXL Media

Published: Apr 11, 2026, 9:46 AM EDT

Source: Information for this report was sourced from Reuters

Accelerated Projections for Exchange-Traded Funds

Financial analysts at Citigroup have significantly upgraded their outlook for the United States exchange-traded fund market, forecasting total assets under management to hit $25 trillion by the year 2030. This marks a substantial increase from the brokerage’s previous estimate of $19 trillion for the same period. As of March 2025, the industry holds approximately $10.4 trillion in assets, suggesting that the sector is positioned to more than double its current footprint as investors increasingly abandon traditional mutual funds for the liquidity and transparency of the ETF structure.

Active Management Leads the Growth Charge

A pivotal driver of this revised forecast is the explosive popularity of active ETFs, which Citigroup expects to gain significant market share over the next decade. Unlike passive funds that simply track a specific index, active ETFs utilize flexible strategies managed by professionals to seek market outperformance. The brokerage predicts that the market share of these actively managed products will double over the next ten years. Investors are gravitating toward these vehicles due to their combination of professional oversight and the lower cost structures typically associated with the ETF wrapper.

Regulatory Evolution and Product Innovation

The surge in assets is also being fueled by a more favorable regulatory environment that has simplified the process for financial institutions to launch new ETF products. According to Citigroup, the adoption of sophisticated investment strategies and a consistent demand for tax-efficient solutions are contributing to the industry's momentum. The brokerage notes that the industry is entering a more mature phase where organic inflows and inorganic market performance will contribute more equally to growth than in the volatile decade prior.