How did tariffs transform the ETF landscape?

Last year was a record-breaking year for ETFs in the United States, exceeding inflows of $1.1tn. Inflows spiked following President Trump’s re-election but fell after his ‘Liberation Day’ tariff announcements. European ETF flows increased by 70% in 2024 from the previous year and have benefited from investors turning away from the US post-tariff announcements. Active ETFs in the US have had a rapid rise over the last few years, recording an organic growth rate of 57% in 2024. The introduction of “The ETF Rule” has also increased the number of new active ETFs, which has risen each year. Last...