ETFs 2029: The path to $30 trillion

Report
March 04, 2025

Marie Coady

Global ETF Leader, PwC Ireland (Republic of)

28%

expect global ETFs to top $30tn by 2029.

60%

expect global ETFs to top $26tn by 2029.

27%

growth in global ETF assets under management in 2024.

24%

growth in Europe’s ETF assets under management in 2024.

Our latest report, ETFs 2029: The Path to US$30 Trillion, reveals that nearly three in ten global executives expect exchange-traded funds (ETF) assets under management (AuM) to more than double, reaching over US$30 trillion by 2029.

This growth represents a compound annual growth rate (CAGR) of over 18.4% in the next five years. Also, 60% of respondents anticipate global ETF AuM to hit at least US$26 trillion by 2029, with a CAGR of at least 15.1%.

In 2024, global ETF AuM surged by a record 27%, reaching US$14.6 trillion by year-end. Record net inflows were observed across regions: US (US$1.1 trillion), Europe (US$266 billion), Asia-Pacific (US$149 billion), and Canada (US$58 billion).

Regional insights

Europe: 61% of European respondents foresee ETF AuM hitting at least US$4 trillion by June 2029, with a CAGR of 15.5%.
United States: 61% of US respondents predict ETF AuM will reach at least US$18 trillion by June 2029, with a CAGR of 14.9%.
Canada: 60% of Canadian respondents expect ETF AuM to reach at least US$1 trillion by June 2029, with a CAGR of 23.2%.
Asia-Pacific: 50% of APAC respondents believe ETF AuM will reach at least US$3 trillion by June 2029, with a CAGR of 16.5%.

Globally, ETF inflows have outpaced mutual funds for the third consecutive year in 2024. The anticipated 15.1% ETF CAGR is significantly higher than the 5.9% projected for the global asset and wealth management industry. Although ETF AuM remains lower than mutual funds, the gap is closing, with ETF AuM now at 29% of global mutual fund AuM, up from 17% in 2019.

European market potential

Europe’s ETF market, which grew by 24% to US$2.2 trillion in 2024, has significant growth potential. A notable shift towards individual/retail investors is expected, with 74% of respondents predicting major growth in this segment over the next two to three years. Digital distribution and ETF savings plans are key drivers. Also, 53% of European respondents foresee significant demand for active ETFs in the near future.

Regulatory and technological innovations

Recent regulatory changes are spurring innovation in the ETF market, with diversification into active, alternative and digital investments. Active ETFs, in particular, show significant potential, with global active ETF AuM growing by 52% to US$1.03 trillion in 2024. By 2029, 65% of respondents expect this to reach US$3 trillion or more.

The report also highlights promising prospects for crypto/digital asset ETFs, with one in three respondents planning to launch such products as regulations permit. Meanwhile, disruptive technologies like AI and blockchain are expected to enhance ETF accessibility and affordability, with digital platforms playing a crucial role in distribution.