ETF Inflows & Outflows
Performance Leaders & Laggards
Source: ETF Action; flows and performance data as of 5/22/25; performance data excludes leveraged and inverse products
Weekly ETF Reads
How AI could end the ETF boom by Felix Salmon
“It’s easy to envision a future where agentic AIs can dynamically execute any strategy.”
Absolute tsunami’ of ETFs to hit market, and investors need to prepare now, says fund expert by Eric Rosenbaum
“Now more than ever, you need to do a lot more homework on what’s out there.”
Investors, Be Careful When Buying New ETFs by Daniel Sotiroff
“Novelty grips investors, and ETF providers meet the demand with new ETFs. Over time, investors sort the best from the worst. The best stick around, the others slowly die off.”
What would an ETF share class mean for investors? by Steve L. Deroian
“In our view, U.S. equity strategies are positioned to benefit the most from the approval of an ETF share class.”
ETF Liquidity isn’t Important by Brandon Clark
“Clickbait. While ETF liquidity is important, how you access it can be even more important.”
When Volatility Hit, ETF Trading Got Automated Like Never Before by Isabelle Lee and Lu Wang
“The rise of new electronic trading tools, broader adoption of ETF strategies and growing client confidence have all led to greater acceptance of automation.”
Trillions in SMA assets ripe for tax-friendly ETF ‘exit valve’ by Tobias Salinger
“Direct indexing available through the SMAs had been considered a competitor to ETFs, but the conversions are getting more attention.”
As more TradFi giants flock to crypto, Vanguard stands apart by Ben Strack
“I think platforms make a huge mistake when they start telling investors which ETFs they should or should not own.”
ETF Post of the Week
The iShares Bitcoin ETF (IBIT) is experiencing what Bloomberg’s Eric Balchunas calls a “classic feeding frenzy”. Last week, IBIT logged its second-highest trading volume day ever and has attracted new inflows in 28 of the past 29 trading days ($8.5 billion!). While stock and bond markets have teetered this year, bitcoin has climbed nearly 17%. Rich Weiss, chief investment officer for multi-asset strategies at American Century Investment Management (via Bloomberg):
“It’s hard to keep fighting it, or at least not acknowledging it as a viable asset class. Maybe that’s enough to get haters like me to jump on the train because in our business, you cannot fight the tape forever.”
$IBIT is going to post its 2nd biggest volume day ever today (outside chance it ends with most). Classic feeding frenzy in effect, new ATHs will do that, eg last time traded this much was 1/23 (last ATH). All the btc ETFs are elevated, most gonna see 2x their average. Flows… pic.twitter.com/LNBysA2C1A
— Eric Balchunas (@EricBalchunas) May 21, 2025
ETF Chart of the Week
I’ve shared versions of this chart before, but the contrast in this one is especially striking. The shift in active versus passive ETF launches over the past decade is hard to ignore. So far this year, out of approximately 350 new ETFs, fewer than 10% are passive. Several factors are driving this trend: the implementation of 2019’s “ETF Rule”, traditional mutual fund managers embracing the ETF structure, and the greater flexibility that active strategies can offer. Perhaps just as importantly, issuers see active ETFs as a stronger way to differentiate in an increasingly crowded market.
That doesn’t mean innovation in passive ETFs is dead, however. VettaFi’s Roxanna Islam:
“Passive ETFs and their indexes can also be innovative and support new strategies. Many use alternate weighting schemes like revenue or factor weighting. These indexes may also incorporate exclusions to create a more “active” feel. Many also use advanced optimization and other technology to run scenarios. And, finally, there are still plenty of passive ETFs that thrive in the disruptive technology space and play an important role in defining new industries or asset classes. This includes anything from thematic equities (new disruptive industries) to emerging asset classes that may be difficult to invest in outside of the ETF structure (e.g., digital assets and private markets).”
But these aren’t your grandfather’s passive strategies.
Source: VettaFi’s Roxanna Islam
ETF Prime Podcast
Last week’s ETF Prime featured Mike Venuto, Chief Investment Officer at Tidal Financial Group, discussing the latest in ETF innovation, from 351 conversions and the ETF share class structure to options-based strategies and leveraged products. Kirsten Chang, Senior Industry Analyst at VettaFi, also offered a tour around the world of fixed income ETFs, highlighting recent flows, new launches, and under-the-radar success stories.
ETF Pulse
On last week’s ETF Pulse, etf.com Editor-in-Chief Kristin Myers and I broke down the potential market and ETF implications of Moody’s downgrade of the U.S. credit rating. We also delved into whether artificial intelligence poses a threat to ETFs, examined the significance of Coinbase joining the S&P 500, and unpacked highlights from Morningstar’s latest fund fee report.
