- As ETFs surge in popularity, the introduction of new mutual funds has significantly tapered. As of February 2025, only five mutual funds were launched, compared to 134 ETFs. From 2021 through February 2025, ETF launches have outpaced mutual funds more than threefold.
- The gap is even wider for passive products, with only 33 passive mutual funds introduced since 2021, compared to 626 passive ETFs.
- ETFs dominate every category except Allocation. Notably, Nontraditional Equity has 24 times more ETF launches versus mutual funds, followed by Sector Equity ETFs at 13 times more.
