INTRODUCTION
The RIA ETF market continues to evolve, with advisors leveraging ETFs for portfolio diversification, cost efficiency, and tactical positioning. As of December 31, 2024, U.S.-listed exchange-traded funds (ETFs) reached approximately $10.69 trillion in assets under management, according to the Investment Company Institute’s January 2025 ETF Data Watch report, highlighting ETFs’ growing dominance in investment portfolios. With RIAs playing an increasingly critical role in ETF adoption, understanding their allocation trends is essential for issuers looking to refine distribution strategies and capture market share.
The AdvizorPro 2025 RIA ETF Trends Report provides a detailed analysis of a sample of 4,768 RIAs with 13F filings allocated to ETFs in 2024, tracking fund adoption, issuer growth, and portfolio shifts. This report highlights the fastest-growing ETF issuers, emerging product trends, and turnover dynamics, offering insights into where advisors are expanding allocations, rebalancing holdings, or shifting away from certain strategies. These findings provide a view of how advisor-driven ETF adoption is evolving in response to market conditions and client demands.
EXECUTIVE SUMMARY
AdvizorPro’s 2025 RIA ETF Trends Report analyzes how registered investment advisors (RIAs) allocated to ETFs from Q4 2023 to Q4 2024, highlighting key industry shifts such as the transition away from mutual funds, increased demand for risk-managed strategies, and the growing adoption of thematic and alternative investments. The continued expansion of U.S.-listed ETFs underscores their dominance as a preferred investment vehicle for advisors, with RIAs playing an increasingly central role in shaping market trends. Understanding how RIAs structure their portfolios is essential for issuers looking to refine distribution strategies and stay competitive in an evolving investment landscape.
- Thematic & Alternative ETFs Gain Traction – Digital asset ETFs saw fast growth, with crypto-related funds up dramatically, while structured income and options-based ETFs gained significant advisor interest.
- RIAs Are Expanding ETF Usage – The average number of ETFs per firm rose 14%, with two-thirds of RIAs increasing allocations, highlighting a preference for diversification over concentration.
- Market Share Is Shifting Among Issuers – While iShares, Vanguard, and SPDR maintain dominance, firms like JPMorgan, Dimensional, and First Trust are seeing rapid growth, reflecting increased advisor demand for active and factor-based strategies.
- High ETF Turnover Signals Active Portfolio Management – Over half of ETF positions changed in 2024, indicating that RIAs are tactically reallocating portfolios to adapt to evolving market conditions.
As ETF adoption accelerates within the RIA space, issuers must focus on product innovation, liquidity, and advisor education to capture market share in a rapidly evolving investment landscape.
