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ETFs Surge: 794 Launched in 2025, Bubble Warnings Emerge

10/19/2025

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Summary

Story summary

The U.S. exchange-traded funds (ETFs) market is expanding rapidly, raising concerns about a potential bubble.
Analysts report 794 new ETFs were launched in the first nine months of 2025, a record pace.
Drew Pettit of Citigroup warns the pace is unsustainable and could lead to product rationalization.
Sean O'Hara of Pacer ETFs says ample investment capital could absorb the new products, while success depends on market-makers' selectivity and investor interest.

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Story summary

The U.S. exchange-traded funds (ETFs) market is expanding rapidly, raising concerns about a potential bubble.
Analysts report 794 new ETFs were launched in the first nine months of 2025, a record pace.
Drew Pettit of Citigroup warns the pace is unsustainable and could lead to product rationalization.
Sean O'Hara of Pacer ETFs says ample investment capital could absorb the new products, while success depends on market-makers' selectivity and investor interest.