On this week’s episode of ETF Prime, VettaFi’s Head of Research Todd Rosenbluth discusses top ETF stories shaping the first half of 2025 with host Nate Geraci. Later, Astoria’s Bruce Lavine steps through 351 Exchanges, explaining what they are and why they matter.
Top ETF Stories for First Half of 2025
As the first half of the year draws to a close, Rosenbluth points to three key moments as the year’s most significant.
First, in February, the Vanguard S&P 500 ETF (VOO ) passed the SPDR S&P 500 ETF Trust (SPY ) as the largest ETF. The fund is on pace to perhaps break its own record of last year of net inflows for an individual ETF. And this is happening all while the S&P 500 is up around just 2%.
Second, active ETFs have continued to punch above their weight. They represent about 40% of flows. And over 90% of new launches in 2025 as of the end of May.
The success of active ETFs in the current environment is hard to miss, Rosenbluth said.
“We’ve seen the success stories at Janus Henderson with JAAA, we’ve written about THRO, which is the iShares product that’s had a lot of success. JEPQ, the JPMorgan ETF,” Rosenbluth said. “It’s just been tremendous to see.”
Third, fixed income ETFs are on pace to break last year’s record of over $300 billion in net inflows.
“This is a time period when the Fed has done nothing in the first six months of the year in terms of changing rates,” Rosenbluth said. “Fixed income is boring and gathering assets; that’s a top story to me.”
See more: ETF Records Were Made to Be Broken
Under-the-Radar ETF Developments
Rosenbluth said there are interesting developments happening in smart beta — the area between active and passive.
The Invesco S&P 500® Momentum ETF (SPMO ) added $1 billion in the past month, and $4 billion in 2025, he added. SPMO was off to the side, Rosenbluth noted. But its smart-beta-index-based approach is really gaining traction now.
Additionally, the VictoryShares Free Cash Flow ETF (VFLO ), which turned two years old this week, added almost $1.5 billion in the first six months of 2025.
“There’s still interest in smart-beta-index-based products,” Rosenbluth said.
351 Exchanges
Finally, Lavine joined to discuss 351 exchanges and the upcoming launch of the Astoria US Enhanced Core Equity ETF (LCOR) this fall. The firm sees 351 exchange ETFs as an emerging tax management tool for investors and advisors.
Demand has been driven by client requests to manage concentrated positions, especially in tech stocks. The new ETF will serve as a tax-efficient way to diversify highly appreciated stock positions, according to Lavine.
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