MARKET INSIGHTS

ETF/ETP Market Trends: Q3 2025

Kristy Akullian, CFA Sep 30, 2025 Global

Q3 2025 FLOWS: DEMAND FOR EQUITIES, FIXED INCOME SPUR FLOWS

  • Q3 ETF/ETP flows marked the strongest quarter yet this year, with $377 billion added and demand resilient across asset classes. That’s 43% more than Q2 and double the quarterly average since 2020.
  • Tech led equity sectors and large caps doubled their YTD monthly average. The quarter also showed that international investors may be starting to rotate back to U.S. exposures.
  • Fixed income ETFs set a new record in Q3, with a boost as investors anticipated the Fed rate cut in September. Active fixed income ETFs accounted for 44% of the quarter’s flows as investors seek active management.
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Q3 delivered a standout quarter for risk assets. The S&P 500 extended its rebound from Q1 lows, with the index led by tech, discretionary and communication services. Small caps staged a rare rally, outpacing large caps, while international equities maintained momentum, supported in part by FX tailwinds from a weaker U.S. dollar.1

Drivers included stronger-than-expected earnings results, growing conviction in the Fed easing cycle and a lower-volatility backdrop.

For ETF/ETP flows, this marked the strongest quarter yet this year, with $377 billion inflows added. This is nearly double the average quarterly flow since 2020 ($195 billion) and is the second-highest quarterly flow in that span. What trends are we seeing within these flows? Here’s more:

LAUNCHES AND LANDMARKS

Strong S&P 500 performance propels flows

Figure 1: Average weekly flows show ‘dip buying’

Bar chart comparing average weekly ETF/ETP flows to average weekly flows following a negative total return week.

Source: BlackRock, Bloomberg. ETF/ETP groupings determined by Bloomberg. As of Sept. 1, 2025.

Chart description: Bar chart comparing average weekly ETF/ETP flows to average weekly flows following a negative total return week for the S&P 500 index for the time period of 2025 YTD to September 1, 2024, and the 2020–2024 average.
  • Investors continued to buy the dip – a departure from past trends. Since the start of the year, average flows into U.S. equity ETFs accelerated after a negative S&P 500 return week — increasing 32% versus the average weekly flow across all instances (Figure 1).
    • While ‘buying the dip’ is a commonly espoused investing mantra, we feel recent history hasn’t supported it. From 2020 to 2024, weekly flows following negative return weeks were typically lower than average — not higher. That makes 2025 a clear departure from the past, as investors have seized on market downturns as opportunities rather than shying away from them.
  • This resilient demand has translated into standout flows. In most months so far this year, both equity and fixed income flows have outpaced 2024 figures. But the composition has evolved: while capital flows pre-COVID closely resembled a 70/30 mix between stocks and bonds, we’ve seen an acceleration of investors diversifying their allocations.

Figure 2: Alternative and commodity flows take up a larger chunk of the pie

Pie charts showing the average portfolio breakdown between Equity, Fixed Income, and Alt. & Commodity.

Source: BlackRock, Bloomberg, groupings determined by Bloomberg. Flows represented as the percentage of total flows for respective years. Digital assets included in groupings as ‘Alt. & Commodity’ exposures, as of Sept. 24, 2025.

Chart description: Pie charts showing the average portfolio breakdown between Equity, Fixed Income, and Alt. & Commodity for the time periods 2016–2019, 2020–2024, and 2025 YTD
  • Recent inflows come alongside the rapid acceleration in ETF/ETP launches. There are now more ETF/ETPs than individual stocks listed in the U.S. — listings have grown by nearly 300% since 2010, while the stock count has largely moved sideways.2
    • After record launches in June (107) and July (109), August’s 74 new ETFs/ETPs pushed the year-to-date total to over 700 — already outpacing 2024’s annual total.3

Figure 3: New ETF/ETP launches by year

Bar chart illustrating the number of new ETF launches annually for the years 2020 to 2025.

Source: BlackRock, Bloomberg. ETF/ETP grouping as determined by Bloomberg. As of Sept. 24, 2025.

Chart description: Bar chart illustrating the number of new ETF/ETP launches annually for the years 2020 to 2025.

All flow sourcing and grouping determined by Bloomberg, as of September 20, unless otherwise noted.

EQUITIES

Large caps dominate flows, but small caps staged a small comeback

  • Large caps were the clear winner for the quarter, adding nearly $94 billion. In August alone, large caps took in $28 billion, more than double the YTD monthly average. Small caps struggled through much of the summer: by mid-August the exposure had shed $15 billion YTD, on track for its worst year of outflows on record.
    • But the prospect of lower interest rates sparked a surge in interest. Starting at the Fed’s Jackson Hole meeting in late August and continuing through September’s first rate cut in nearly a year, small caps outperformed and flows followed suit. The Russell 2000 Index hit a record close on Sept. 18, its first since 2021.4 Small cap funds saw two consecutive weeks of inflows, including their largest weekly inflow of the year of $4 billion during FOMC week.
  • The quarter also marked a regional shift, with international investors starting to rotate back into U.S. exposures. Since January, European investors have largely favored domestically focused ETFs, reversing historical patterns (consider that U.S.-focused flows were nearly 12x those into Europe last year). But over the last two months, inflows from offshore investors to U.S.-focused ETFs have overtaken those into Europe, signaling a renewed appetite for U.S. equities from investors abroad.5

All flow sourcing and grouping determined by Bloomberg, as of September 20, unless otherwise noted.

FIXED INCOME

Appetite for active management

Figure 4: Fixed income ETFs reach new quarterly record

Bar chart showing the quarterly net flows into Fixed Income ETF's on a quarterly basis since Q1 2021.

Source: Bloomberg, ETF groupings determined by Bloomberg. As of Sept. 24, 2025.

Chart description: Bar chart showing the quarterly net flows into Fixed Income ETF's on a quarterly basis since Q1 2021.
  • Fixed income ETFs saw record demand in August, with nearly $50 billion of inflows, pushing Q3 totals above $100 billion — nearly double the longer-run quarterly average. Active fixed income ETFs accounted for 44% of flows, despite representing only 19% of fixed income ETF assets.
  • Long-duration fixed income flows accelerated in August and September ahead of the FOMC decision, reversing June and July outflows. The shift didn’t trigger outflows from shorter-dated exposures, but flows pointed to a mild rotation: in September, short and ultra-short funds captured 39% of total fixed income flows, down from a 47% YTD monthly average.

FEATURED FUNDS

  • iShares ETFs are available to purchase through a brokerage account or with a financial advisor.

    Buy through your brokerage

    iShares funds are available through online brokerage firms. All iShares ETFs and ETPs trade commission free online through Fidelity.

    By clicking on the button below, you will leave BlackRock’s website.

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    Contact your advisor

    Contact a financial professional to discuss how iShares ETFs and ETPs can fit in your investment portfolio.

    Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.

    Any links to third-party websites are provided for use at your own discretion. Each third party is solely responsible for the content presented and availability of its website. BlackRock does not control, monitor or maintain third-party websites, their content or the products/services they offer. Content may change without notice. When you leave BlackRock’s website and enter a third-party website, you will be subject to that site’s terms, policies and/or notices, including those related to privacy and security, as applicable. Please review those policies and notices on the third-party website.

    Before engaging Fidelity or any broker-dealer, you should evaluate the overall fees and charges of the firm as well as the services provided. Free commission offer applies to online purchases of select iShares ETFs in a Fidelity account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain Fidelity Brokerage Services platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.

    The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

    ©2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.

    iCRMH1124U/S-3985892

All flow sourcing and grouping determined by Bloomberg, as of September 20, unless otherwise noted.

ALTS AND COMMODITIES

Gold’s gains spurred by Fed

  • Gold ETPs continued to draw heavy inflows, totaling $12.6 billion in Q3, bringing YTD net flows to a record $32 billion. But the pace hasn’t been linear: inflows slowed through the summer, before reaccelerating ahead of the Fed’s September meeting. Gold ETPs added $3.6 billion during FOMC week, and the iShares Gold Trust (IAU) posted its best weekly inflow on record. With central banks buying and dollar weakness in focus, we believe the macro backdrop remains supportive.
  • Bitcoin ETP inflows totaled $8.3 billion in Q3, a slight decline from Q2’s $12.4 Flows mirrored Bitcoin’s volatility: after two $2 billion+ weeks in July, flow activity fell below average for most of the quarter before picking up around the FOMC meeting. Products such as the iShares Bitcoin Trust ETF (IBIT) have been part of this broader trend, which we believe may reflect investor interest in gaining exposure through ETPs.

Figure 5: Gold and Bitcoin ETP flows

Bar chart showcasing the weekly net ETP flows of Gold and Bitcoin in Q3 2025 compared to their YTD weekly average flows.

Source: BlackRock, Bloomberg, ETP groupings determined by Markit. As of Sept. 24, 2025.

Chart description: Bar chart showcasing the weekly net ETP flows of Gold and Bitcoin in Q3 2025 compared to their YTD weekly average flows.

FEATURED FUNDS

  • iShares ETFs are available to purchase through a brokerage account or with a financial advisor.

    Buy through your brokerage

    iShares funds are available through online brokerage firms. All iShares ETFs and ETPs trade commission free online through Fidelity.

    By clicking on the button below, you will leave BlackRock’s website.

    Buy now on Fidelity

    Contact your advisor

    Contact a financial professional to discuss how iShares ETFs and ETPs can fit in your investment portfolio.

    Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.

    Any links to third-party websites are provided for use at your own discretion. Each third party is solely responsible for the content presented and availability of its website. BlackRock does not control, monitor or maintain third-party websites, their content or the products/services they offer. Content may change without notice. When you leave BlackRock’s website and enter a third-party website, you will be subject to that site’s terms, policies and/or notices, including those related to privacy and security, as applicable. Please review those policies and notices on the third-party website.

    Before engaging Fidelity or any broker-dealer, you should evaluate the overall fees and charges of the firm as well as the services provided. Free commission offer applies to online purchases of select iShares ETFs in a Fidelity account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain Fidelity Brokerage Services platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.

    The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

    ©2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.

    iCRMH1124U/S-3985892

  • iShares ETFs are available to purchase through a brokerage account or with a financial advisor.

    Buy through your brokerage

    iShares funds are available through online brokerage firms. All iShares ETFs and ETPs trade commission free online through Fidelity.

    By clicking on the button below, you will leave BlackRock’s website.

    Buy now on Fidelity

    Contact your advisor

    Contact a financial professional to discuss how iShares ETFs and ETPs can fit in your investment portfolio.

    Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.

    Any links to third-party websites are provided for use at your own discretion. Each third party is solely responsible for the content presented and availability of its website. BlackRock does not control, monitor or maintain third-party websites, their content or the products/services they offer. Content may change without notice. When you leave BlackRock’s website and enter a third-party website, you will be subject to that site’s terms, policies and/or notices, including those related to privacy and security, as applicable. Please review those policies and notices on the third-party website.

    Before engaging Fidelity or any broker-dealer, you should evaluate the overall fees and charges of the firm as well as the services provided. Free commission offer applies to online purchases of select iShares ETFs in a Fidelity account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain Fidelity Brokerage Services platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.

    The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

    ©2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.

    iCRMH1124U/S-3985892

The iShares Trusts are not investment companies registered under the Investment Company Act of 1940, and therefore are not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940. Investments in these products are speculative and involve a high degree of risk.

All flow sourcing and grouping determined by Bloomberg, as of September 20, unless otherwise noted.
Photo: Kristy Akullian, CFA

Kristy Akullian, CFA

Head of iShares Investment Strategy for the Americas

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