2025 RIA ETF Trends Report: How Advisors Are Allocating to ETFs

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. This milestone highlights 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
• Turnover dynamics

Together, these insights reveal 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. Key industry shifts include 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. RIAs are now central in shaping ETF market trends, and issuers must understand how advisors structure portfolios to refine distribution strategies and remain competitive.

Key Findings

• Thematic & Alternative ETFs Gain Traction
• Digital asset ETFs saw rapid growth, with crypto-related funds up significantly. Structured income and options-based ETFs also gained strong advisor interest.
• RIAs Are Expanding ETF Usage
• The average number of ETFs per firm rose 14%, with two-thirds of RIAs increasing allocations — showing a clear preference for diversification over concentration.
• Market Share Is Shifting Among Issuers
• While iShares, Vanguard, and SPDR maintain dominance, issuers like JPMorgan, Dimensional, and First Trust are experiencing rapid growth, reflecting stronger demand for active and factor-based strategies.
• High ETF Turnover Signals Active Portfolio Management
• Over half of ETF positions changed in 2024, showing that RIAs are tactically reallocating portfolios to adapt to evolving market conditions.

Why This Matters for ETF Issuers

As ETF adoption accelerates within the RIA space, issuers must double down on product innovation, liquidity, and advisor education to capture market share in this rapidly evolving landscape.

For more insights into advisor behaviors and industry shifts, you may also want to read: The Best RIA Databases in 2025.

Conclusion: Turning ETF Data Into Distribution Strategy

ETF adoption among RIAs is accelerating, reshaping the competitive landscape for issuers. To succeed, firms must understand advisor allocation patterns and respond with targeted distribution strategies backed by accurate data.

At AdvizorPro, we make this possible by equipping issuers with advisor-level intelligence and CRM integrations that turn ETF data into actionable opportunities. Request your free demo today to see how AdvizorPro can help you capture advisor demand and grow ETF distribution.

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