According to @EricBalchunas, passive funds gained 1.4 percentage points of market share in 2025 to reach 54% overall, comprising roughly 60% on the equity side and 40% on the fixed-income side, source: @EricBalchunas on X, Jan 8, 2026. According to @EricBalchunas citing analysis by @JSeyff, the slower pace of passive share gains was driven by a bull market subsidy and genuine growth from active strategies, particularly in active ETFs, fixed income, and buffer strategies, source: @EricBalchunas on X, Jan 8, 2026; analysis referenced from @JSeyff.

According to Eric Balchunas, only 50% of 2025 ETF net inflows went into funds charging 10 bps or less, the lowest share in years, source: Eric Balchunas Jan 7 2026. He said this is not due to investors leaving ultra cheap funds, since the 50% slice still totaled about 750 billion dollars of flows, source: Eric Balchunas Jan 7 2026. He attributed the shift to an expanding ETF universe that includes legacy active strategies, buffer ETFs, hot sauce products, and BYOA, source: Eric Balchunas Jan 7 2026. He added that this is welcome news for asset managers after a period when cheap beta seemed poised to take everything, source: Eric Balchunas Jan 7 2026.

According to Eric Balchunas, low volatility ETFs have experienced five years of consecutive outflows and multiple liquidations, signaling a major shift in investor preference toward buffer ETFs that offer more predictable downside protection. This structural change in traditional ETF demand suggests investors are prioritizing risk management and stability, which could impact broader portfolio allocations, including reduced appetite for risk-on assets like cryptocurrencies. As more capital flows into buffer ETFs, the search for volatility and higher returns may shift toward crypto markets, potentially increasing digital asset trading activity as traders seek alternative high-yield opportunities (Source: Eric Balchunas, Twitter, June 3, 2025).

According to Eric Balchunas, Buffer ETFs have consistently attracted investments for 50 consecutive months, achieving a record quarter as their sales pitch gains strength in the current year. This trend highlights their growing popularity and resilience in volatile markets, making them a notable option for traders seeking risk mitigation (source: Eric Balchunas).