Key Takeaways
- • Global ETF assets under management reached $14.6 trillion by end of 2024, growing a record 27% year-over-year, with cumulative annualized growth of approximately 20% between 2008 and 2023, according to PricewaterhouseCoopers and State Street Global Advisors.
- • ETF product proliferation accelerated dramatically: the number of ETFs globally surged to over 13,000 in 2024 from approximately 2,500 in 2015; Q1 2025 saw more than 230 new ETF launches in the U.S. alone, marking the highest first-quarter count since 2015.
- • SEC regulatory relief in 2019 removed certain barriers to ETF issuance, materially reducing compliance friction and enabling asset managers to expand product offerings at scale.
- • TCW Group (Los Angeles) and iM Global Partner Fund Management (El Segundo) are prominent regional players capitalizing on ETF growth; TCW acquired Engine No. 1's ETF business in fall 2023 and now manages $2.8 billion in ETF assets across multiple product lines as of April 25, 2025.
- • Core ETF advantages driving adoption include intraday trading flexibility, tax optimization strategies, enhanced liquidity, and structural fee advantages relative to traditional mutual funds.
Summary
Exchange-traded funds have transitioned from a niche investment vehicle into a dominant force in global asset management. Global ETF assets reached $14.6 trillion by the end of 2024, reflecting record year-over-year growth of 27%, according to PricewaterhouseCoopers. This explosive expansion follows a more measured but sustained trajectory: between 2008 and 2023, ETF assets compounded at nearly 20% annually, as documented by State Street Global Advisors, the Boston-based pioneer that launched the first ETF in 1993.
The proliferation of available ETF products underscores intensifying competitive dynamics and investor demand. The global ETF count reached over 13,000 products in 2024, up from approximately 2,500 in 2015—a more than five-fold increase in less than a decade. This acceleration continued into 2025, with Bloomberg News reporting that Q1 2025 saw more than 230 new ETF launches in the United States alone, representing the strongest first-quarter performance for new issuances since 2015.
Regulatory tailwinds have been instrumental in driving this growth trajectory. The SEC's removal of certain regulatory requirements in 2019 substantially lowered barriers to entry for asset managers seeking to issue new ETF products, catalyzing increased product innovation and competitive pricing. Combined with structural advantages—intraday trading capability, tax optimization features, superior liquidity, and lower fee structures relative to mutual funds—ETFs have become the preferred vehicle for both institutional and retail investors.
Regional asset managers are actively participating in this expansion. TCW Group, headquartered in downtown Los Angeles, entered the ETF space in fall 2023 through its acquisition of Engine No. 1's ETF business, which provided two equity ETFs as a foundation. Following this acquisition, TCW has expanded its ETF platform through additional launches and conversion of select mutual fund strategies into ETF wrappers, accumulating $2.8 billion in total ETF assets under management as of April 25, 2025. Similarly, iM Global Partner Fund Management, based in El Segundo, has launched nine ETFs since 2019, positioning itself as an active participant in the sector's growth.
The proliferation of available ETF products underscores intensifying competitive dynamics and investor demand. The global ETF count reached over 13,000 products in 2024, up from approximately 2,500 in 2015—a more than five-fold increase in less than a decade. This acceleration continued into 2025, with Bloomberg News reporting that Q1 2025 saw more than 230 new ETF launches in the United States alone, representing the strongest first-quarter performance for new issuances since 2015.
Regulatory tailwinds have been instrumental in driving this growth trajectory. The SEC's removal of certain regulatory requirements in 2019 substantially lowered barriers to entry for asset managers seeking to issue new ETF products, catalyzing increased product innovation and competitive pricing. Combined with structural advantages—intraday trading capability, tax optimization features, superior liquidity, and lower fee structures relative to mutual funds—ETFs have become the preferred vehicle for both institutional and retail investors.
Regional asset managers are actively participating in this expansion. TCW Group, headquartered in downtown Los Angeles, entered the ETF space in fall 2023 through its acquisition of Engine No. 1's ETF business, which provided two equity ETFs as a foundation. Following this acquisition, TCW has expanded its ETF platform through additional launches and conversion of select mutual fund strategies into ETF wrappers, accumulating $2.8 billion in total ETF assets under management as of April 25, 2025. Similarly, iM Global Partner Fund Management, based in El Segundo, has launched nine ETFs since 2019, positioning itself as an active participant in the sector's growth.
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