Introduction
The first quarter of 2025 revealed a dynamic start to the year for ETF adoption in the RIA channel. Based on our analysis of 13F filings and proprietary advisor-firm mapping, this report highlights the ETFs and issuers gaining the most traction among independent RIAs.
In Q1 alone, 5,136 RIAs reported ETF holdings, spanning 3,740 unique ETFs across 242 issuers. From tactical tilts to thematic bets, these positions offer a clear window into how advisors are positioning client portfolios—and which providers are breaking through the noise.
This report zeroes in on issuer-level momentum, standout funds by new advisor count, and strategic category shifts across different firm sizes. Whether you’re monitoring competitive positioning or identifying opportunities for growth, the trends captured here are designed to inform your strategy with real advisor data.
Executive Summary
The first quarter of 2025 saw a shift in RIA ETF behavior, marked by accelerated adoption of specialized strategies, an appetite for risk-managed products, and growth among both emerging and established issuers. This report unpacks the key ETF and category-level movements across 5,000+ RIAs, highlighting opportunities for issuers to align with advisor demand in a fast-evolving market.
Q1 2025 Highlights:
- Thematic and tactical ETFs—particularly those tied to commodities, options trading, and macro-driven exposures—outperformed, as inflation resilience and geopolitical risk dominated advisor priorities.
- High-fee ETFs bucked convention with rapid growth, suggesting RIAs are prioritizing strategy differentiation over cost minimization in volatile markets.
- ETF turnover remained active, pointing to continuous portfolio optimization among RIAs despite a pullback in new fund launches.
Top 10 Fastest-Growing ETF Issuers Among RIAs
ETF issuers with the highest percentage growth in RIA allocators over the past year (Q4 2024 – Q1 2025)
Issuer-level dynamics in Q1 reflected growing appetite among RIAs for specialized, non-core strategies. While incumbents like Franklin Templeton maintained dominance, emerging issuers like Panagram and BondBloxx saw the fastest percentage growth in advisor count, indicating fertile ground for innovation-driven entrants.
Key Takeaways:
- Niche issuers gained ground as RIAs diversified away from plain beta, especially in structured credit and fixed income sectors.
- Panagram and BondBloxx benefited from heightened demand for alternatives amid persistent rate volatility.
- Traditional giants like Franklin Templeton continued expanding, signaling momentum for legacy and disruptor brands.
Top 10 Fastest-Growing ETFs Among RIAs
ETFs with the highest percentage growth in RIA allocators over the past year (Q4 2024 – Q1 2025)
This section examines the individual ETFs with the highest percentage growth in RIA allocator count over the quarter. Only ETFs with at least 50 RIA clients in Q4 are included. The analysis provides visibility into which specific funds are resonating most with advisors—whether due to strategy innovation, tactical allocation shifts, or broader market narratives.
Key Takeaways:
- Pacer’s COWG led with 46% CRD growth, as advisors tilted toward large blend and factor-based exposure with a defensive tilt.
- Ultrashort bond and options-trading ETFs gained broad adoption amid uncertain rate paths and demand for cash alternatives.
- The presence of both emerging and major issuers (e.g., BlackRock, VanEck) shows momentum is not limited to newcomers.
Top 10 High-Fee ETFs Gaining RIA allocators
ETFs in the top 10% of expense ratios with the highest RIA growth over the past year (Q4 2024 – Q1 2025)
Focusing on the top 10% of ETFs by expense ratio, this section highlights those that saw the greatest RIA adoption growth in Q1 2025. It spotlights high-fee strategies that gained traction, indicating where advisors are prioritizing outcomes or niche exposures over cost. This can offer clues into where RIAs believe fee premiums are justified.
Key Takeaways:
- High-fee options strategies like FJAN and DFEB gained traction, suggesting RIAs are valuing structured outcomes amid macro uncertainty.
- TSLL’s strong growth reflects increased comfort with leveraged equity in tactical sleeves, despite fee sensitivity.
- Simplify’s CTA—a rules-based trend follower—showed advisors will pay up for systematic strategies with real downside protection narratives.
Top 10 Newly Launched ETFs Gaining RIA Adoption
The fastest-growing ETFs introduced within the last three years based on RIA adoption (Q4 2024 – Q1 2025)
This analysis tracks ETFs launched within the past three years that gained the most RIA clients over the quarter. It ranks these newer products by CRD growth and includes value growth data where available. These results help identify which recent fund launches are finding product–market fit among independent advisors—and what categories are seeing early traction.
Key Takeaways:
- RIA adoption favored downside risk tools, with increased usage of options-based and trend-following ETFs such as CTA and IOCT amid market uncertainty.
- Short-duration bond and CLO strategies saw steady growth, as advisors allocated toward income-focused products like CLOZ and CLOA in response to rate conditions.
- Several newer issuers gained traction, reflecting advisor interest in product-specific exposures regardless of brand size or tenure.
Top 10 ETF Categories with the Highest RIA Growth
Morningstar categories with the largest increase in RIA allocators over the past year (Q4 2024 – Q1 2025)
This section ranks Morningstar categories by percentage increase in the number of RIAs allocating to them between Q4 2024 and Q1 2025. Only categories with at least 50 CRDs in Q4 are included. The results reveal which investment themes, asset classes, or strategy types gained new RIA traction during the quarter.
Key Takeaways:
- Trend-following and hedged equity strategies saw the highest growth in RIA adoption, led by Systematic Trend and Inverse Equity categories.
- International equity categories such as Europe and China showed increased allocator interest, suggesting renewed focus on regional diversification.
- Multisector bond and real asset categories gained modest traction, reflecting continued demand for flexible income and inflation-sensitive exposures.
Are RIAs Concentrating or Diversifying ETF Allocations?
Tracking the change in the average number of ETFs held per RIA firm over the past year (Q4 2024 – Q1 2025)
This section tracks the change in the average number of ETFs held per RIA firm and the distribution of firms increasing, decreasing, or maintaining their ETF count from Q4 2024 to Q1 2025. The data provides insight into whether RIAs are consolidating portfolios or expanding diversification.
Key Takeaways:
- 41.8% of RIAs increased their ETF count from Q4 2024 to Q1 2025, compared to 66.9% who reported an increase over the prior 12-month period. The quarterly snapshot suggests fewer firms expanded their ETF exposure in early 2025.
- 37% of RIAs reduced their ETF holdings in Q1, indicating a mix of tactical rebalancing and potential portfolio consolidation.
Growing Adoption of Thematic ETFs Among RIAs
Growth in Thematic ETF Adoption Among RIAs (Q4 2024 – Q1 2025)
This section tracks thematic ETFs by number of RIA portfolio appearances, highlighting which specific funds gained the most visibility quarter-over-quarter. It also includes thematic category-level shifts across 10 categories (e.g., commodities, digital assets, sector-specific themes). The goal is to pinpoint which long-term investment narratives RIAs are leaning into.
Key Takeaways:
- Gold ETFs (GLD, IAU, GLDM) continued to rise in adoption, as advisors maintained commodity allocations amid persistent inflation concerns and Fed rate uncertainty.
- IBIT led digital asset ETF growth, gaining RIA allocators during Bitcoin’s Q1 rally and as more custodians expanded crypto-related access.
- Uranium-focused NLR and energy-transition ETFs saw increased usage, likely tied to policy shifts and global interest in nuclear as a low-carbon energy source.
- Geographically targeted funds like EWG (Germany) and EPOL (Poland) gained traction, potentially reflecting advisor response to shifting dynamics in the EU economy and Eastern Europe.