The financial market is witnessing a historic shift, with the widest gap in history between the number of publicly traded ETFs and the number of publicly traded stocks.
Number of ETFs Exceeds That of Stocks
In a Wednesday post on X, The Kobeissi Letter said that there are 1,000 more ETFs than stocks to trade in the U.S. market, indicating "The structure of the market is experiencing a historic shift."
The number of U.S.-listed ETFs has risen to an all-time high of 4,900, up 95% since 2000, while the number of U.S. publicly listed companies has declined 20% to 3,900, the lowest this century.
The explosive growth in ETFs has been driven by their unique strategies, creativity, transparency, diversification benefits, and lower costs compared to mutual funds. ETFs allow investors to gain exposure to multiple companies through a single investment, while individual stocks represent ownership in one specific company.
Further, new launches at a record pace are fueling ETF growth as issuers rush into hot themes like artificial intelligence, space exploration and active management. Kirsten Chang, senior industry analyst at VettaFi, said earlier this month that the ETF industry is on track to launch between 1,100 and 1,200 ETFs this year, potentially matching the record-breaking pace seen in 2025.
AUM Grows
ETFs’ assets under management (AUM) jumped 10% to a record of $14.9 trillion in April. It soared 140% over the past four years and now accounts for about 69% of the global ETF market. The letter said, "ETFs are reshaping the foundation of financial markets."
Among the most notable is the Vanguard S&P 500 ETF (NYSE:VOO), which tracks the S&P 500 Index. It has been growing its assets rapidly and is heading toward a trillion-dollar AUM. VOO, launched in September 2010, has attracted more than $59 billion in inflows this year, propelling its AUM to $974.3 billion.
The ETF overtook the oldest $769.3 billion SPDR S&P 500 ETF Trust (NYSE:SPY) in February 2025 for the world's top ETF crown. SPY also lags the iShares Core S&P 500 ETF (NYSE:IVV), which has AUM of $830.8 billion.
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