The Retail Reality

Everyone knows digital distribution and retail adoption are the next big growth engines for ETFs and the wider asset management industry. Here’s why:

Most asset managers still don’t see the opportunity clearly. They talk about retail, but act like it’s a side project. Their systems, incentives, and leadership mindset remain built for institutions, not individuals. ​

Distribution teams aren’t ready either. They’re structured to sell through intermediaries, not to engage directly with millions of retail investors who expect education, transparency, and a frictionless digital experience.

Then there’s brand. Outside a handful of names, most firms have zero visibility with retail investors. Building that awareness takes real marketing firepower — and real budgets. Most firms don’t have either. ​

And even when they try, too many still push products instead of building trust. Retail investors don’t want a sales pitch. They want guidance. ​

They want to understand what they’re investing in, why it matters, and how it fits into their long-term goals. Education wins attention; product sheets don’t. ​ The opportunity is huge, but the gap between knowing and executing is even bigger. ​

The winners will be those who rethink distribution from the ground up with digital-first infrastructure, education-led communication, and a willingness to invest in brand. ​ Everyone else will keep talking about retail. They just won’t reach it.

Highs, Lows, Liquidity and Liquidations

The rally stumbled, but the record highs kept on coming… Let’s unpack what went down last week.

Global markets stepped back from major highs last week, with US-China trade-war fears resurfacing before the weekend. But it wasn’t all doom and gloom: precious metals and major indices in the US, UK, EU and Japan all hit fresh highs. Meanwhile, new data revealed just how deeply AI, leveraged ETFs, and currency risk are shaking up global finance.

Here’s how markets moved last week:

• US: Stocks retreated from their record highs midweek, with the S&P 500 and Nasdaq losing steam as the US government shutdown. The US dollar, however, surged to a two-month high, adding pressure to risk assets, as reflected in end of the week selloffs, notably crypto.
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• UK: The FTSE 100 hit a fresh all-time high (ATH)- up nearly 8% YTD- as investor sentiment stayed resilient despite a firmer pound and global macro headwinds.
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• EU: Europe’s STOXX 600 index also reached a new ATH, buoyed by strong earnings, positive industrial data, and broader optimism around central bank policy.
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• Asia: Japan’s Nikkei 225 surged to a record high, continuing its momentum on tech optimism and a rebound in consumer spending. Meanwhile, China’s rare earths sector ripped higher as Beijing tightened control over supply chains.
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• Emerging Markets: Argentine assets soared after the US Treasury intervened to support the peso, marking a rare vote of confidence in the country’s economic stability.
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• Commodities: Silver hit a 45-year high, while gold continued its tear, extending a three-year rally to fresh ATHs.
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• Crypto: A US$635 million liquidation event sent crypto’s global market cap back under US$4.3 trillion, even as 97% of Bitcoin’s supply remains in profit.

Here are the big stories from last week:

• US-China trade war fears resurfaced: With China’s tightening grip on rare earths being countered by US President Trump’s tariff threats on Chinese goods.
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• AI Risk Disclosure Goes Mainstream: 72% of S&P 500 companies cited AI as a “material risk” in their 10-K filings, up from just 13% two years ago. As adoption skyrockets, so do the legal and operational risks.
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• Leveraged ETF tracking AMD Implodes in the EU: ETF issuer GraniteShares’ -3x short AMD ETF was wiped out in the UK and Italy following a major surge in AMD’s stock price, sending its NAV to 0 and reigniting concerns over the growing appetite for high-risk strategies on global exchanges. This serves as another stark reminder for investors chasing leverage to tread carefully.
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• IMF Flags a Trillion-Dollar FX Liquidity Problem: The IMF warned that the US$9.6 trillion FX market is facing serious liquidity risks. That’s not just a currency story… it’s a systemic one.

Launches this week

Flows & performance

ETFs could top US$1 trillion by October 15

After taking in US$149 billion in September (second-most all-time), US-listed ETFs now have over US$946 billion in inflows so far this year—just shy of the US$1 trillion mark. Based on this pace, ETFs could top US$1 trillion by October 15. Mark it down.

State Street’s SPY faces record outflows as Vanguard’s VOO takes the lead in cost-driven ETF shift

State Street’s flagship S&P 500 ETF is on track to post the largest annual outflows of any such fund in history, underscoring the changes sweeping through an ETF industry gripped by cut-throat competition for cost-conscious investors.

Investors have pulled US$32.7bn from the SPDR S&P 500 ETF Trust, widely known by its ticker SPY, so far this year. The wave of selling has come even with the S&P 500 soaring 15 per cent in 2025 in the latest blow to the fund, which lost its crown as the world’s largest ETF earlier this year when it was usurped by Vanguard’s rival S&P 500 fund, known as VOO.

Vanguard’s fund and other rivals to SPY have been boosted by the growing “retailisation” of the US’s US$12.2tn ETF market, increasingly dominated by small investors focused on hunting down the lowest fees. This has undermined SPY, which is more expensive than its rivals and has long been favoured by institutional investors, drawn to it over the years by its market liquidity, making it easy to trade, and by an unparalleled ecosystem of derivative products that has built up around it. (Source: Financial Times)

The iShares Bitcoin Trust ETF (IBIT) is on the verge of a historic milestone: US$100 billion in assets under management

Since its launch on January 11, 2024, IBIT has smashed one record after another, passing US$20 billion, US$50 billion, and US$80 billion in rapid succession, on its way to becoming the fastest-growing ETF in history.

If IBIT crosses the US$100 billion mark, it will do so in record time, well ahead of the eight years it took the Vanguard S&P 500 ETF (VOO) to reach that milestone. It would also be rarefied air. Only 18 U.S.-listed ETFs currently manage more than US$100 billion. (Source: Financial Times)

The crypto ETP market in Europe has more than doubled in the past two years

According to Morningstar the size of the crypto ETP market in Europe has more than doubled in the past two years. Assets amounted to EUR 19.3 billion at the close of the third quarter, up from EUR 16.7 billion in 2024 and EUR 7.9 billion in 2023.

WisdomTree’s European ETF and ETP range surpasses $50 Billion in assets under management

WisdomTree has announced that its European ETF and ETP range has surpassed US$50 billion in assets under management, writing that this marks a major milestone in its growth trajectory.

The achievement underscores the strength of WisdomTree’s UCITS platform, its leadership in gold and commodities, and its position as a first mover in crypto ETPs. Globally, WisdomTree manages over US$140 billion, across asset classes, on behalf of investors.

This milestone comes less than a year after WisdomTree celebrated its 10th anniversary in Europe in October 2024, marking a decade in which the firm has evolved from a pioneering ETF entrant into one of the region’s most established and innovative issuers. Congrats Alexis and team. (Source: ETF Express)

Australia’s ETF market has surged past A$300bn (US$197bn) for the first time

As investor appetite turn for low-cost, passive investments continues to grow. According to an ASX report published at the end of September, the total market capitalisation of ETFs reached A$300bn, up 36.7% from A$220bn a year earlier.

• Australian equity ETFs rose 31 % over the year to A$79.9bn, while global equity exchange traded products advanced 38 %to A$147.6bn.
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• Fixed income ETFs grew 36.5 % to A$41.3bn and property funds increased 18.8 per cent to A$12.2bn.
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• Commodity ETFs nearly doubled to A$10.9bn, reflecting renewed interest in gold and other metals, while crypto ETFs surged almost nine-fold to A$490mn. (Source: Ignite Asia)

Best Performers US & EU

Graph of the Week

As of July, retail investors accounted for a record 75 per cent of US ETF assets, up from 56 per cent a decade ago, according to data from Broadridge Global Market Intelligence, representing a sevenfold increase in their assets to US$8.8tn.

Things of interest

EPIC Investment Partners is set to become the latest to enter Europe’s ETF ​white-label​ ETF market

EPIC Investment Partners is targeting active asset managers looking to tap a wider range of distribution channels.

The US$6bn investment firm announced it has launched a white-label UCITS ETF platform amid a series of regulatory changes that have ‘opened the door’ to active strategies to be run in an ETF wrapper.

EPIC says its pricing model eliminates initial setup fees and features a tiered platform fee structure that declines as the ETF accumulates greater assets under management (AUM). If they are eliminating the setup fee does that mean they are absorbing it themselves as nothing is free? (Source: ETF Stream)

U.K. lifts retail ban on Crypto ETNs

The U.K. has officially lifted its multi-year retail ban on crypto exchange-traded notes (ETNs), saying the digital asset market has matured enough for individuals to invest through regulated products, even if investors will have to wait a little longer to add them to their portfolios. The move paves the way for retail investors to hold bitcoin and ether ETNs tax-free in pension and ISA accounts. (Source: Coin Desk)

Solana ETFs likely to struggle amid Crypto investor fatigue

U.S. exchange-traded funds giving investors Solana exposure will struggle to break records, JPMorgan analysts said this week.

“Solana is not perceived by investors the same way as Ethereum as the main DeFi/smart contract cryptocurrency.”

It added: “Second, there is likely to be investor fatigue with multiple crypto spot ETFs being launched.” (Source: Decrypt)

JPMorgan says ‘finfluencers’ drive fund sales

JPMorgan Asset Management has observed “drastic” differences in sales for distributors that use online content creators and digital tools, saying future fund launch decisions could factor in these criteria.

Anis Tiasiri, JPMorgan AM’s head of south-east Asia and India intermediaries, said the US fund company was “asking more questions now more than ever” about how its products were being distributed on the ground. (Source: Ignite Asia)

ETFs 101

ETFs are most known for being a cheap investment vehicle but the TER is not the full cost that investors bear. That would be the Total Cost of Ownership.

Career corner

Movers and Shakers

• Manish Patel has joined Global X Europe in London as head of Product. He joins from M&G.​
• Bruno Stein has joined Galapagos Capital in Brazil as head of ETFs. He joins from Safra.
• Aldi Kolnikaj has joined HANetf in London as Retail Platforms, Sales and Marketing. He joins from UBS.
• Tom Stephens has left his role as Head of international ETF Capital Markets at JP Morgan Asset Morgan. His next destination is still TBC.

On the Move

Looking to take the next step in your ETF career?

ETFcareer.com connects top talent with the industry’s leading firms. Whether you’re just starting out or seeking a senior-level role, our curated job board features opportunities tailored to your expertise.

Tip of the week

85% of people say they don’t like their jobs. Are you one of them?

If you are, don’t ignore it. That feeling is telling you something.

You don’t need to quit tomorrow or burn it all down. But you do need to get clear on what’s making you unhappy.

Start small:

• Write down what parts of your day give you energy, and which drain it.
• Ask yourself if your work aligns with what you value most.
• Talk to people doing what you’d like to do. Listen, learn, and take notes.
• Build skills that move you toward that direction, even if it’s an hour a week.

Most people wait for motivation. The smart ones build momentum. You don’t have to love every task, but you should feel that your work matters.

If you don’t, start changing it. One decision at a time.

Fun Fact

Back from the dead. Roundhill Investments is reviving its MEME stock ETF, now using an actively managed process based on social media metrics and volatility (versus the prior index-based version).

Because when fundamental analysis fails, there’s always Twitter sentiment and a dash of volatility. Welcome back, MEME ETF, the markets missed your drama.

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