Article

ETF Snapshot: Finishing the year on a high

13 January 2026
Invesco
Overview of a roundabout

Key takeaways

Strong end to 2025

1

European ETFs gathered US$373bn in 2025, with US$98bn in Q4 alone.

Rotation within equities

2

Emerging markets and Europe gained momentum in Q4, pushing the US down the rankings.

Cash and commodities reign

3

Cash‑focused fixed income and commodities, beyond gold, saw strong year‑end demand.

Recapping ETF flows in Q4

Monthly flows into European ETFs maintained their impressive streak into year-end, with the US$98 billion in net new assets (NNA) gathered in Q4 taking the full-year total to a record-breaking US$373 billion. Total AUM closed 2025 at US$3.18 trillion, up 40% year-on-year.

Although broad asset class flows observed in December were almost perfectly aligned with the full-year breakdown – 74% into equities, 21% into fixed income and 5% into commodities – Q4 paints a slightly different picture, particularly when you look beneath the surface. 

Equities – Emerging Market and Europe outperform

Global equity exposures dominated flows throughout the year, but demand for emerging market equities accelerated in Q4, pushing the US into third place. The US fell even further when isolating December, as demand for European equities saw a clear resurgence.

Fixed income – Captures almost a third of all ETF flows in Q4

Fixed income punched above its weight relative to the rest of the year. Cash management exposures, such as overnight return swap ETFs, continued to capture the lion’s share, likely reflecting stretched equity valuations and ongoing economic uncertainty.

Cash and Commodities – Strong year-end on risk off positioning

Despite outflows from physical gold ETPs in October, commodity flows turned positive in the final two months, ending the year on a high. Alongside gold ETPs, physical silver and broad commodity exposures also saw increased demand into year-end.

What to focus on this month

  1. Price of US exceptionalism
    Weak USD diminishes returns of US assets for European investors.
  2. Diversification trades
    The attraction of gold and other low-correlated assets.
  3. Cash rates likely to fall further
    Interest rates are expected to be cut further in 2026. 
Explore more in our latest ETF Snapshot Opens in a new tab

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