Global ETF December Report

December 2025 closed out a year marked by shifting sentiment and selective conviction across global ETF markets. Global ETF inflows reached an estimated $303 billion during the month, lifting full-year net inflows to approximately $1.5 trillion, with large-cap and broad-market equity ETFs alone attracting around $164 billion, underscoring the strength of year-end equity demand.

As inflation pressures continued to ease and central banks signalled a pause in tightening cycles, investors ended the year by rotating back into equity risk while reducing allocations to defensive assets and long-duration exposures. Equity demand was broad-based, led by core U.S. large cap equity exposures, with S&P 500 and Nasdaq ETFs attracting significant inflows as confidence in earnings resilience and expectations of prospective rate cuts strengthened.

In Europe, positive flows were driven by banking and broad-market ETFs, reflecting improving balance sheet dynamics and a more favourable funding backdrop. Across Asia-Pacific, China dominated regional activity, with record allocations into CSI A500 Index ETFs signalling renewed confidence in domestic policy support. Meanwhile, continued redemptions from money-market and long-duration bond ETFs underscored a global rotation away from cash and duration risk as the year drew to a close.

US: Mega-Caps Dominate as Investors Position for Policy Easing

December 2025 capped the year with a decisive risk-on tilt in U.S. ETF flows, as investors leaned into broad equity beta amid a supportive year-end market backdrop. U.S. listed ETFs recorded net inflows of $241 billion during the month, marking a new record for monthly flow. Equity markets were underpinned by easing financial conditions, resilient corporate earnings and growing confidence that the Federal Reserve’s policy cycle was firmly shifting toward rate cuts in early 2026. Against this backdrop, investors prioritised scale, liquidity and simplicity, driving strong demand for core large-cap equity ETFs.

S&P 500 ETFs dominated activity, with IVV, VOO, and SPY collectively attracting over $50 billion, underscoring sustained appetite for low-cost benchmark exposure. Inflows into QQQ reflected continued conviction in U.S. growth and AI-linked mega-cap earnings, while $5 billion of inflows into VTI highlighted broad-based participation across the equity market rather than narrow sector positioning.

By contrast, December saw outflows from fixed income and select cyclical equity segments. Corporate bond ETFs and ultra-short Treasury exposures faced redemptions as investors reduced defensive allocations and rotated away from cash-like instruments.

Top 5 US ETF Net Inflows December 2025

Source: S&P Global Market Intelligence Exchange Traded Fund Data
© 2026 S&P Global Market Intelligence

Top 5 US ETF Net Outflows December 2025

Source: S&P Global Market Intelligence Exchange Traded Fund Data
© 2026 S&P Global Market Intelligence

Europe: Targeted Equity Positioning Amid Rising Rate-Cut Confidence

European ETF flows in December pointed to a selective risk-on rotation, as investors balanced improving macro sentiment with continued caution around the policy outlook. European listed Equity ETFs led net inflows of $30 billion, supported by easing inflation pressures and greater confidence in earnings visibility heading into 2026. Broad European equity exposure remained in demand, while financial sector ETFs, particularly banks, stood out as beneficiaries of expectations that profitability would remain resilient even as rate cuts draw closer.

Money market ETFs also continued to attract inflows, underscoring a dual allocation approach that combined increased equity exposure with active short-term liquidity management. This reflected investors’ desire to remain flexible while gradually increasing risk exposure. In contrast, fixed income ETFs experienced notable outflows, led by corporate credit and short-dated government bond products. These redemptions suggested a rotation away from defensive and carry-focused strategies accumulated earlier in the cycle.

Top Europe ETF Net Inflows December 2025

Source: S&P Global Market Intelligence Exchange Traded Fund Data.

© 2026 S&P Global Market Intelligence.

Top Europe ETF Net Outflows December 2025

Source: S&P Global Market Intelligence Exchange Traded Fund Data.

© 2026 S&P Global Market Intelligence.

APAC: China-Led Equity Demand Drives Regional ETF Activity

Asian ETF markets closed 2025 with a clear shift toward equity exposure, underpinned by China’s late-year rally and steady momentum in Japan. This improved equity backdrop drove strong inflows into China’s broad market benchmarks, with more than $13 billion allocated to CSI A500 Index ETFs during December. The China Southern and Huatai PineBridge products led gains, reflecting renewed investor confidence in China’s policy support and prospects for growth recovery.

At the same time, investors reduced cash and duration exposure, signalling a move away from capital preservation strategies. Money market ETFs saw notable redemptions, with the Kodex Money Market ETF recording net outflows of approximately $1.3 billion, while bond markets softened modestly amid rising inflation expectations.

Overall, December flows pointed to a constructive shift in risk appetite across Asia-Pacific, as investors favoured large-cap equity exposure and trimmed defensive allocations heading into 2026. The trend underscored growing confidence in the region’s economic outlook and highlighted the continued maturation of APAC’s ETF ecosystem.

Top 5 APAC ETF Net Inflows December 2025

Source: S&P Global Market Intelligence Exchange Traded Fund Data
© 2026 S&P Global Market Intelligence

Top APAC ETF Net Outflows December 2025 

Source: S&P Global Market Intelligence Exchange Traded Fund Data
© 2026 S&P Global Market Intelligence

Summary of Monthly Flows

December closed the year with investors using ETFs to adjust portfolios as confidence grew around an upcoming shift in monetary policy. As inflation eased and expectations for rate cuts strengthened, investors reduced defensive positions and increased exposure to broad equity markets, while trimming allocations to cash-like products and long-duration bonds.

Flow patterns varied by region but shared a more constructive tone. In the US, strong inflows reflected confidence in corporate earnings, with investors favouring large-cap benchmark ETFs. In Europe, investors selectively added equity exposure, particularly in financials and broad-market ETFs, supported by improving balance sheets and funding conditions. In Asia-Pacific, flows were more concentrated, led by China equity ETFs as expectations for policy support increased, alongside steady participation in other regional markets.

Overall, December flows reinforced the role of ETFs as efficient and flexible allocation tools, allowing investors to adjust regional and asset-class exposures while positioning for a more supportive policy environment in 2026.