State Street: U.S. ETFs Have Attracted Over $1 Trillion This Year, Poised for Record High

On Tuesday, State Street Investment Management announced that investors are rapidly pouring funds into U.S. exchange-traded funds (ETFs), with inflows surpassing $1 trillion this year. This marks the latest evidence of ETFs reshaping Wall Street’s investment landscape.  

 

 

State Street, a prominent U.S. financial institution, is a leader in asset custody, investment management, and fintech, with its custody business ranking among the global top three. The firm predicts U.S. ETF inflows could hit a record $1.4 trillion by the end of 2025.  

 

As investors continue to shift away from traditional mutual funds toward lower-cost, more liquid ETFs, nearly all ETFs are benefiting from this flood of new capital.  

 

Matthew Bartolini, head of global research strategy at State Street Bank, said: “Any market correction may slow the pace, but it won’t stop the trend.”  

 

State Street noted that last year, U.S. ETF inflows reached $1 trillion on December 11, the first time this threshold was crossed. Bartolini added that this year, the pace has accelerated, with investors directing funds into everything from low-cost, broad-market ETFs tied to the S&P 500 to crypto and gold ETFs.  

 

Data from industry analytics firm ETFGI, released Tuesday, showed that as of September’s end, the U.S. ETF industry’s assets under management stood at $12.7 trillion, with net inflows for 41 consecutive months. ETFGI noted a year-to-date asset growth rate of nearly 23%.  

 

Elise Terry, head of BlackRock’s U.S. iShares, the world’s largest single ETF issuer, said the over $1 trillion in inflows “highlights the need for accelerated innovation, broader market access, and expanded education.”  

 

Michael Venuto, CIO of ETF provider Tidal Financial Group, said mutual fund outflows will continue to drive ETF inflows. Morningstar data shows mutual fund outflows totaled $481 billion in the first nine months of 2025.  

 

“The current situation is impressive because it’s continuing amid rising market uncertainty,” Venuto said. “We’re in daily discussions with asset managers looking to launch new ETFs or convert existing mutual funds into ETFs.”