Investment Vehicle Trends That Are Shaping 2025

From Thematic ETFs and Interval Funds to Tokenized Assets and Private Investments

Year-to-date, 2025 fund flows reveal strong dynamics across key asset classes. Equities saw robust confidence with U.S. Equity ETFs attracting $56 billion in January alone. Fixed-income investments gained momentum, with $28 billion flowing into U.S. Fixed-Income ETFs in the same period, driven by a shift toward safety amid uncertainties. Active fixed-income ETFs are on track to surpass $200 billion in net flows for the year, while ultra-short and short-term government bond ETFs accumulated $34 billion by April. Real estate maintained steady growth, with U.S. REITs posting a 2.6% Q1 return and non-traded REITs achieving $1 billion in gross flows for the first time in two years, appealing to income-focused investors. Alternatives, particularly private credit and multi-strategy hedge funds, dominated inflows, reflecting investor demand for yield, flexibility, and reduced market correlation.