• Below, we explore how the ETP and ETF market could evolve over the coming year, based on the projected economic context and emerging technologies.
• This information is intended for asset managers, and financial advisors seeking deeper insights into the exchange-traded products industry.
• FlexFunds offers an asset securitization program that enables the creation of ETPs to enhance the distribution of investment strategies. For more information, please do not hesitate to contact our experts.

ETPs (exchange-traded products) are listed products, much like corporate stocks. They are designed to replicate the performance of an underlying asset and generate returns, offering several advantages regarding structure, liquidity, and the ability to distribute investment strategies.

These products have experienced exponential growth in less than a decade as investors have recognized their utility in navigating the challenges of today’s financial landscape.

At FlexFunds, a leading firm in the creation and launch of investment vehicles, we analyze the key trends guiding the ETP market in 2026.

The state of the ETP market in 2026

ETPs remain firmly on the radar of investors looking for new ways to expand their portfolios. We are currently in a period where competition in financial markets is driving innovation, and these products provide the ideal solutions for it.

According to the independent research and consulting firm ETFGI, the ETP market—including exchange-traded funds (ETFs)—reached a record $19.85 trillion in assets at the end of December, surpassing the previous record of $19.25 trillion set in October 2025.

Assets grew by 33.7% during the year, rising from $14.85 trillion at the end of 2024 to $19.85 trillion in December 2025. In that final month alone, net inflows of $330.78 billion were recorded.

Furthermore, the cumulative net inflow since January reached $2.37 trillion, the highest figure ever recorded, compared to $1.88 trillion in 2024 and $1.29 trillion in 2021. This also marks the 79th consecutive month of net inflows.

In this regard, the Swiss firm SIX Group highlights that the demand for investment opportunities “is also reflected in the expansion of financial products by issuers.”

What are the key trends for ETP growth?

What is behind the success of exchange-traded products (ETPs)? Essentially, they represent one of the most efficient solutions for structuring investment vehicles.

Given current conditions, several marked investment trends will be key to the development of listed products.

Increased exposure to alternative assets

High-net-worth individuals are increasing their exposure to alternative assets to maximize returns and diversify their portfolios.

Specifically, the following segments represent this trend:

• Venture Capital.
• Private Debt.
• Real Estate Investment Funds.
• Renewable Energy.
• Infrastructure.

Alternative investments seek to capitalize on inefficiencies that may arise in financial markets. In an era marked by declining interest rates following the sharp increases of recent years, it is no surprise that private banking clients are opting for uncorrelated strategies capable of achieving extraordinary returns.

Generally speaking, alternative investments offer the advantage of providing stable and growing cash flows with limited competition and high barriers to entry.

However, alternative investments are often characterized by a lack of liquidity and the difficulty of finding the right infrastructure for distribution. This is why ETPs are emerging as a vital tool for their development.

Equity and sustainable investments

Beyond alternatives, equities also play a significant role in the launch of listed products.

In this context, an article by Nicholas J. Elward, a specialist at Natixis Investment Managers, indicates that “increased market volatility is driving some investors to seek actively managed ETFs. The reason is that they expect managers to be able to mitigate volatility and downside risk.”

Meanwhile, Mary Hagerman, investment manager and advisor at Raymond James, asserts that investments in companies adopting ESG (environmental, social, and governance) criteria will continue to generate interest. A growth in investment vehicles related to this theme is expected.

The reality is that sustainable investment is now considered a behavioral shift by investors rather than a passing fad. This is due to several factors:

• Alternative energy sources are now competitive.
• Energy demand is expected to grow toward 2040 (according to the International Energy Agency).
• Public policy support (based on commitments made in the Paris Agreement).
• Greater awareness among all social stakeholders to shift the paradigm toward a greener economy.

Cryptocurrencies have burst into the ETP space

The report released by Natixis Investment Managers also projects that crypto ETFs will continue to consolidate.

As reported by Deloitte, from the approval of futures-based ETFs in 2021 to spot ETPs in 2024, exchange-traded crypto products have become increasingly popular among investors and have been adopted by some of the world’s most prominent investment managers.

In relation to this, Tom Lydon, founder and CEO of ETF Trends, stated that “financial advisors are increasingly looking for exposure to alternative assets, and interest in crypto is rising.”

Investors themselves are driving the growth of listed products

BlackRock, the world’s largest asset manager by AUM, highlights that exchange-traded products—and ETFs in particular—have the opportunity to gain more ground because they “are increasingly being used in portfolios to seek outcomes that differ from the broader market.”

At the same time, a “transformation in the financial advice business model” is occurring, along with “an evolution in how bond trading tends to favor ETFs for efficient market access.”

PwC forecasts that investors will increase their adoption of these instruments. Nearly one in three survey respondents expects global ETF AUM to more than double to $30 trillion over the next five years, while 60% anticipate global ETF AUM to reach at least $26 trillion by June 2029.

“We believe investors are poised to increase their use of ETF strategies as tools to potentially beat the market in the coming years,” BlackRock summarized.

Every strategy must be housed in the appropriate investment vehicle, and ETPs provide the necessary flexibility.

In this regard, FlexFunds is uniquely positioned to provide asset management firms with customized solutions that facilitate the creation and launch of ETPs, fund accounting, and corporate administration.

With over $6 billion in securitized assets and more than 500 issuances across 30+ countries, FlexFunds has helped financial institutions, investment advisors, hedge funds, and real estate managers improve the distribution of their investment strategies, facilitating access for global investors.

If you would like to learn more about our services, we invite you to schedule a personalized session with our financial experts to begin your journey in the ETP space.

Sources:

• ETFGI reports Active ETFs listed globally gathered net inflows of US$10.44 billion during April 2022. www.etfgi.com
• 360° Perspectives on Indexing & Theme Investments; based on ETP & Indexing Guide 2021/2022 (www.six-group.com)
• 2022 ETF Trends to Watch, October 20, 2021 ()
• 4 TRENDS DRIVING ETF GROWTH. June 2021. www.blackrock.com
• https://www.deloitte.com/hu/en/services/consulting/perspectives/The-ETP-breakthrough–Crypto-s-regulatory-milestone.html
• https://www.pwc.com/gx/en/industries/financial-services/publications/etf-survey.html