When it comes to mutual fund industry product development, ETFs are now the dominant force.

Michael Page Fuse Research Network Research Associate

Over the last four years, from 2021 through February 2025, U.S. asset managers have launched 2,241 ETFs, according to new finds revealed yesterday by Michael Page, research associate at Fuse Research Network. In that same time period, fund firms have only launched 693 open-end mutual funds, meaning that ETFs now account for more than 76 percent of the mutual fund and ETF launches. (On the passive side, the ratio is 626 ETFs to 33 open-end funds.)

The ratio has been worsening in recent years, too. ETFs accounted for more than 96 percent of launches in the first two months of 2025. In January and February 2025, fundsters launched 5 open-end funds and 134 ETFs.

(Looking back, in 2024, fundsters launched 721 ETFs and 150 open-end funds. In 2023, it was 512 to 140. In 2022, it was 405 to 162. And in 2021, it was 469 to 236.)

Page notes ETFs' dominance has one exception.

"ETFs dominate every category except Allocation," Page writes.

Page tells MFWire that "buffer and leveraged ETFs" dominated ETF launches in the first two months of 2025.

As for 2024, Page notes that taxable bond funds (142 ETFs and 72 mutual funds) were the top category for launches. The category's popularity continues this year, too, with 23 new ETFs (but no open-end funds) in January and February 2025.

As for active versus passive launches, Fuse's data suggests the winner there is different than when it comes to flows.

"Actively managed products account for the vast majority of new launches, with 82% of funds introduced in 2024 being actively managed," Page writes. "Since 2021, 95% of mutual fund launches have been actively managed, significantly higher than ETFs, where 72% of new fund launches have been actively managed." 

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