Investing in America’s Next 250 Years
As Americans gather throughout the year to celebrate the 250th anniversary of the nation’s founding, we are presented with a rare moment to reflect on the ideas and institutions that have shaped our country’s remarkable journey.
For two and a half centuries, America’s strength has rested not only on individual ambition, but on systems that connect the efforts of millions of people to enable shared progress. From the earliest days of the republic, Americans have believed in building for the long term—investing in enterprise, infrastructure, and opportunity so that each generation can go further than the last.
The spirit of long-term investment remains central to America’s success, and the regulated funds industry exemplifies this spirit. Every day, mutual funds, ETFs, and other regulated investment vehicles channel the savings of tens of millions of Americans into productive investments that power economic growth and prosperity. They help businesses expand and innovate. They help communities finance essential public works. And they help individuals and families across the economic spectrum pursue their financial goals.
As the nation celebrates this historic anniversary, the Investment Company Institute is reflecting on how regulated funds are deeply woven into the fabric of the US economy and American life. For decades, these investment vehicles have helped build financial security for millions of Americans while directing household savings toward projects that support jobs, innovation, and growth in communities large and small across the country.
Building Long-Term Financial Security
Regulated funds have expanded access to investing and helped millions of Americans build financial security. Today, more than half of all Americans—nearly 130 million—own mutual funds, ETFs, or other registered investment funds. Ownership has grown fastest among middle- and lower-income households over the past two decades, reflecting the role funds play in broadening participation in capital markets. For most investors, funds are not speculative tools; they are long-term savings vehicles. In 2025, nine in ten fund-owning households reported that saving for retirement was one of their primary financial goals, and many first invested through employer-sponsored retirement plans. Through these investments, Americans are able to save efficiently, diversify risk, and share in the growth of the US economy—helping transform long-term financial security from a privilege into a realistic goal for working families.
Supporting Jobs, Innovation, and Competitiveness
Regulated funds are among the largest and most consistent sources of capital for American enterprise. US investment companies manage roughly $39 trillion in assets, and at the end of 2024 they held about one-third of all US corporate equities outstanding and nearly one-quarter of corporate bonds. This scale matters. It means that household savings invested through funds help finance everything from research and development to factory expansions and technology upgrades across the economy.
Funds also help keep capital markets liquid and efficient, lowering the cost of raising money for businesses both large and small. Over the past five years alone, bond funds attracted more than $1 trillion in cumulative inflows, supporting steady demand for corporate debt and helping keep borrowing costs lower than they otherwise would be. As new industries emerge and existing ones evolve, regulated funds provide American businesses with a durable source of investment capital that supports innovation, competitiveness, and job creation over the long term.
Investing in Communities
Just as important, regulated funds play a vital role in financing the public infrastructure that supports economic growth and daily life in communities across the country. At year-end 2024, funds held roughly 28% of all US municipal securities outstanding, making them one of the largest sources of financing for state and local governments. Through these investments, household savings help build and maintain schools, hospitals, transportation systems, water and energy infrastructure, and other essential public assets.
Money market funds further support public finance by providing short-term funding through investments in Treasury bills and other instruments that help governments manage cash flow and day-to-day operations. Together, these investments give communities reliable access to capital, allowing them to plan for the future, respond to growth, and deliver services that strengthen local economies and improve quality of life.
The Next 250 Years
As the nation marks its 250th anniversary, the story of regulated funds is uniquely American—showcasing a clear example of how long-term investment, broad participation, and strong institutions can work together to support shared prosperity. By connecting household savings to private enterprise, public infrastructure, and individual financial goals, regulated funds have become a durable part of America’s economic foundation. Looking ahead, sustaining this model will remain essential to meeting the challenges and opportunities of the next 250 years—and to ensuring that financial markets continue to serve both the nation’s growth and the aspirations of its people.