ICI Viewpoints

The 65^th edition of the Investment Company Fact Book is now available, highlighting more than 300 statistical reports, 26 research and policy publications, and issue-specific analysis from ICI’s Research Department. For the first time, Fact Book now features a data visualization option that allows users to better understand and interact with the data.

ICI is the primary source statistical information on the investment company industry, making Fact Book indispensable for any informed view on the state of the world markets and how US households invest. Here are five key takeaways from the 2025 edition to help you understand the latest trends:

1. 2024 was the year of the ETF, with more ETF launches in 2024 than in any prior year. 

The industry launched 757 exchange-traded funds (ETFs) last year, mostly equity ETFs. That’s 46 percent more than in 2023, which was the previous record-setting year. Net share issuance of ETFs crossed $1 trillion for the first time, and total net assets of ETFs crossed $10 trillion for the first time, as well.
 

Number of ETFs Entering and Exiting the Industry

Note: Data include ETFs that invest primarily in other ETFs.

ETFs have benefited from growing institutional ownership and a greater demand for index-based investment products.

Some of the Outflows from Domestic Equity Mutual Funds Have Gone to ETFs

Cumulative flows to domestic equity mutual funds and net share issuance of domestic equity ETFs, billions of dollars, monthly 

Note: Mutual fund data include net new cash flow and reinvested dividends; ETF data for net share issuance include reinvested dividends

2. Worldwide demand for bonds fueled regulated long-term fund inflows.

Net sales of regulated open-end long-term funds tripled in 2024 to $2.3 trillion. Most of the increase was attributable to net inflows into bond funds, which more than doubled in 2024 to $1.4 trillion, likely driven by expectations that central banks would soon begin lowering official interest rates. When interest rates fall, bond prices rise and vice versa. As such, fixed-income investors stand to gain from a reduction in interest rates, and in a falling rate environment, investors tend to move assets into bond funds to “lock in” higher yields. 

Worldwide Net Sales of Regulated Open-End Long-Term Funds Was Primarily from Inflows into Bond Funds

Billions of US dollars by type of fund, annual 

* Other funds include guaranteed/protected funds, real estate funds, and other funds. 
Note: Regulated open-end funds include mutual funds, ETFs, and institutional funds.
Source: International Investment Funds Association 

Worldwide net sales of money market funds were also strong at $1.53 trillion, a marginal increase from 2023 but still ticking up to their highest level in more than 15 years.

3. The US open-end fund market comprises the largest share of the global regulated fund market, with its assets concentrated in fewer funds than Europe’s or the Asia-Pacific region's.

The US has the largest share (53%) of total net assets of worldwide regulated open-end funds, but only 7 percent of the individual funds. Europe’s share of total net assets is 31 percent, but its share of individual regulated open-end funds is 42 percent. The Asia-Pacific region has an 11 percent share of total net assets and a 29 percent share of the individual funds.

The United States Has the Largest Share of Total Net Assets of Worldwide Regulated Open-End Funds

Trillions of US dollars by region, year-end 

* Data for New Zealand are for 2023:Q2. 
Note: Regulated open-end funds include mutual funds, ETFs, and institutional funds.
Source: International Investment Funds Association 
 

The number of fund sponsors competing in the US market has been declining from a peak of 879 at year-end 2015, to 787 at year-end 2024, but with substantial turnover—the net decrease represents 433 sponsors entering the market and 519 leaving.

4. Exploited by activists, traditional closed-end funds are still being shuttered, even though total assets have ticked up due to performance.

Traditional closed-end fund (CEF) net share issuance remained negative for the third consecutive year, and the number of traditional CEFs in the market continued to decline. However, total assets in these funds ticked up marginally due to market performance, while the average discount narrowed in 2024.

Total Assets of Traditional CEFs Have Stagnated in Recent Years and the Number of Traditional CEFs Has Significantly Decreased

Billions of dollars, year-end

Note: Total assets is the fair value of assets held in CEF portfolios funded by common and preferred shares less any liabilities (not including liabilities attributed to preferred shares). Source: ICI Research Perspective, “The Closed-End Fund Market, 2024”
 

5. Mutual fund investors continue to invest in the lowest-cost options in the market.

Like the prices of most goods and services, the expense ratios of individual mutual funds differ considerably across the array of available products. The expense ratios of individual funds depend on many factors, but investors show a strong preference for funds with below-average expenses. The simple average expense ratio of equity mutual funds (the average for all equity mutual funds offered for sale) was 1.10 percent in 2024. The asset-weighted average expense ratio for equity mutual funds (the average shareholders actually paid) was far lower, at 0.40 percent. At year-end 2024, equity mutual funds with expense ratios in the lowest quartile held most (81 percent) of equity mutual funds’ total net assets, and this pattern holds for both actively managed and index equity mutual funds.

Expense Ratios Incurred by Mutual Fund Investors Have Declined Substantially Since 2000

Percent 

Note: Data exclude mutual funds available as investment choices in variable annuities. Sources: Investment Company Institute, Lipper, and Morningstar. See ICI Research Perspective, “Trends in the Expenses and Fees of Funds, 2024.” 

Be sure to check out the 2025 Fact Book for more insights.