Fixed Income Etf Use And Product Development Efforts Accelerate In Us: Cerulli Associates

Fixed-income ETFs have seen rapid growth, with assets in taxable ETFs rising from $1.2 trillion in 2022 to nearly $2 trillion by the third quarter of 2025, according to Cerulli Associates. Tax-free fixed-income ETFs also expanded from $106 billion to $165 billion over the same period, spurred by increased adoption among financial advisers and supportive interest rate conditions.

More than 300 new fixed-income ETFs have launched in the past three years, driven by strong demand for both passive and active strategies. ETF issuers are prioritizing U.S. fixed income, with 87% focusing on taxable products, followed by interest in global, municipal, and defined outcome strategies, while educational initiatives aim to boost adviser familiarity with these offerings.