ETFs: Passive or Active – The World is Your Oyster!

Assets invested in the global Exchange Traded Fund (ETF) industry reached a new record high at the end of May 2025 – standing at USD16.27 trillion. In this article we consider what led the way in terms of latest trends and look at:

• ETF characteristics;
• Active ETFs and their associated product development journey (including disciplinary devices and regulatory considerations such as transparency and naming conventions);
• ETF liquidity benefits over mutual funds;
• The global spread of ETF products;
• Examine the potential benefits, and possible issues, associated with dual share class ETFs;
• Citi as an ETF partner; and 
• Look to what the future may hold.

Overall, ETFs will continue to evolve, addressing demographic trends such as the rise in digitally-savvy investors, anticipated regulatory changes, and an increased focus on wealth accumulation.