2025 marked a rotation toward international equities. We provide data-driven analysis on the $19.85 trillion ETF market and portfolio implications for 2026.
After a decade of US outperformance, 2025 data showed a shift. We analyze valuation gaps and why developed ex-US markets returned +35.10%.
With global ETF assets reaching $19.85 trillion and annual inflows of $2.37 trillion in 2025, we review implications for bid/ask spreads.
BlackRock and Vanguard account for most US-listed ETF assets. We break down issuer concentration, securities lending revenue, and fee competition.
Verified data from cited sources. Key figures include +35.10% for developed ex-US returns and $19.85 trillion in global ETF assets.
| Metric / Asset Class | 2025 Value / Return | Context |
|---|---|---|
| Developed Markets ex-US | +35.10% | Top-performing major equity category in ETFGI's 2025 regional summary, with Korea at +10.98% in December. |
| Emerging Markets | +24.39% | ETFGI reported broad emerging market equity gains, including strength in Peru and South Africa. |
| S&P 500 (US Large Cap) | +17.88% | US large-cap equities remained positive but trailed developed ex-US returns in ETFGI's 2025 summary. |
| Global ETF Assets (AUM) | $19.85 Trillion | ETFGI reported a new industry AUM high above the prior $19.44 trillion level recorded in November 2025. |
| 2025 Net Inflows | $2.37 Trillion | ETFGI reported this as the highest annual inflow total and the 79th consecutive month of net inflows. |
Concise implementation guidance based on verified 2025 return, ETF AUM, and flow data.
This analysis is designed for long-term ETF investors, retirement savers, and advisors who need to rebalance diversified portfolios after developed markets ex-US returned 35.10% versus 17.88% for the S&P 500 in 2025.
The 2025 market regime shifted toward international leadership, with developed markets ex-US up 35.10% and emerging markets up 24.39%, while global ETF AUM reached $19.85 trillion and net inflows hit a record $2.37 trillion.
Opportunities are concentrated in developed ex-US and selective emerging-market ETFs where earnings revisions are improving and valuation multiples remain in the mid-teen range compared with US large-cap multiples near 28x.
Investors can implement by auditing current country and sector weights, adding phased allocations to diversified international and bond ETFs, and reviewing ETF AUM, net inflow trends, and valuation multiples at each rebalance window.
Our research focuses on the pillars of modern portfolio theory and practical wealth management in a changing global economy.
The most reliable path to wealth. Learn why broad diversification beats stock picking, especially as international markets resurgence.
Learn More →Deep dives into current market valuations (28.2x P/E), the impact of AI, and global interest rate cycles.
Read Insights →Compare expense ratios, liquidity, and holdings. Review structure and fit across 15,807 products globally.
Compare ETFs →What happens after the 2025 "Great Rotation"? We examine historical parallels and position for the next decade of international outperformance.
Read ReportStart with our "Investing Basics" series to lay the foundation for a lifetime of wealth in the global ETF market, now measured at $19.85 trillion.
Start Learning