The US Exchange-Traded Fund (ETF) market continued its explosive growth through 2025, setting new records in total assets under management (AUM) and inflows. While popularity can be measured by metrics such as AUM, trading volume, or net inflows, the ETFs with the highest total AUM generally represent the “most popular” in terms of broad investor adoption and entrenched market position.
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Market Capitalization Giants: The S&P 500 Leaders
Mirroring decades of investor preference for low-cost, broad market exposure, the largest and arguably most popular ETFs in the USA in 2025 remain those that track the S&P 500 Index. These funds offer exposure to 500 of the largest publicly traded companies in the US, acting as the de facto benchmark for the US stock market.
- Vanguard S&P 500 ETF (VOO): As of late 2025, VOO solidified its position as one of the largest ETFs by AUM, frequently noted for its combination of immense size and an extremely low expense ratio. Its dominance reflects the consistent investor preference for Vanguard’s low-cost index-tracking philosophy.
- SPDR S&P 500 ETF Trust (SPY): Often cited as the oldest and most actively traded ETF, SPY continues to be an indispensable tool for institutional traders and investors due to its massive trading volume and liquidity. While sometimes trailing VOO and IVV in pure AUM due to its slightly higher expense ratio, its daily popularity in terms of trading activity is unparalleled.
- iShares Core S&P 500 ETF (IVV): Completing the trio of S&P 500 market leaders, IVV also maintains a top-tier AUM and competes directly with VOO on its ultra-low expense ratio, making it a core holding for many passive investors.
Beyond the S&P 500, another equity ETF that maintained extreme popularity, particularly among investors seeking exposure to the technology-heavy sector, was the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 Index. Its focus on large-cap growth stocks positioned it as a continued favorite in a year dominated by technological advancement.
The Surge in Fixed Income ETFs: A New Popularity Contest
A major theme in 2025 was the unprecedented growth in the fixed income (bond) ETF space. With changing interest rate expectations, investors poured record levels of capital into bond ETFs, fundamentally shifting the landscape of popularity.
- iShares 0-3 Month Treasury Bond ETF (SGOV): This ultra-short duration bond ETF emerged as one of the single most popular funds in terms of net inflows for the year, taking in tens of billions of dollars. This monumental inflow suggests significant investor demand for a liquid, low-risk alternative to cash and traditional money market funds, reflecting a cautious but opportunistic capital allocation strategy.
- Vanguard Total Bond Market ETF (BND) and iShares Core U.S. Aggregate Bond ETF (AGG): These funds, which track the broad US investment-grade bond market, remain popular core holdings in fixed income, much like their equity-market counterparts (VOO/IVV) are for stocks.
Trending Themes and New Entrants Driving Popularity
While the market-cap leaders represent the core, popularity in terms of new investment themes and growth was captured by several other categories:
Active ETFs
2025 was a landmark year for Active ETFs, which collectively captured a record percentage of overall ETF inflows. This indicates a growing investor comfort with and preference for active management delivered through the transparent and tax-efficient ETF structure. The flow of assets into active funds, particularly in the fixed income and thematic equity sectors, highlights a dynamic shift in investment preference.
Digital Assets and Commodities
The launch and subsequent performance of Spot Bitcoin ETFs was a major catalyst for market interest, with funds like the iShares Bitcoin Trust (IBIT) quickly amassing significant AUM and becoming major players. Additionally, the SPDR Gold Shares (GLD) saw renewed popularity and substantial inflows, as gold and other commodities served as a popular hedge against macroeconomic and geopolitical uncertainty.
Growth and Dividend Focus
Other funds that maintained a high level of popularity with specific investor segments included:
- Vanguard Growth ETF (VUG): Favored by investors seeking exposure to large-cap US growth stocks.
- Schwab U.S. Dividend Equity ETF (SCHD): Consistently popular with income-focused investors due to its emphasis on high-quality, dividend-growing US companies.
Conclusion
In 2025, the title of “most popular ETF in the USA” can be bifurcated. In terms of sheer scale and total AUM, the dominant S&P 500 trackers—primarily Vanguard S&P 500 ETF (VOO), SPDR S&P 500 ETF Trust (SPY), and iShares Core S&P 500 ETF (IVV)—continue to lead the market. However, when measuring by flow of new investor capital and reflecting shifting market dynamics, the popularity of iShares 0-3 Month Treasury Bond ETF (SGOV) and the overall growth in active and thematic funds, including digital asset products, demonstrates where investor interest and market growth were most concentrated throughout the year.