ETFs emerge as the fastest growing product on digital investing platforms¹

Two in five Americans prefer automated investment plans

BlackRock released its inaugural U.S. “People & Money” report focused on the next wave of exchange traded fund (ETF) investors, revealing a powerful shift in how Americans are engaging with financial markets. The nationally representative survey of over 5,000 U.S. adults highlights the growing adoption of ETFs, particularly among first-time investors seeking diversification, convenience and cost-efficiency.

ETFs: A Gateway for First-Time Investors

ETFs have become the entry point for new investors. According to the analysis, an estimated 24 million Americans² now own ETFs, representing nearly a quarter (23%) of investors.

“ETFs have revolutionized how millions of people invest today,” said Elise Terry, Head of U.S. iShares at BlackRock. “These findings reflect growing demand for diversified exposures through efficient, transparent vehicles — and a rising appetite for choice in how Americans seek to grow their wealth. This momentum underscores the need to accelerate innovation, broaden access, and scale education to pursue better outcomes for all investors.”

Of respondents – representing an estimated 19 million Americans² who plan to invest in ETFs over the next 12 months – 44% are predicted to be first time ETF investors, while 56% of current ETF investors plan to increase their allocations. These new ETF buyers are predicted to start younger and with less income, with 71% of survey respondents under the age of 44. Separately, recent Cerulli data shows that ETFs have become the fastest-growing investment product on digital platforms, outpacing single securities and mutual funds.³

The leading factors driving ETF adoption among those surveyed include diversification benefits (47%), ease of trading (40%), and potential for better returns compared to traditional savings accounts (37%). In addition, investors between 35-44 are embracing ETFs for their convenience and ease of use.

Changing Preferences Show Equity and Crypto in Demand

Equity ETFs remain the most popular choice for both current investors (83%) and those planning to enter the ETF market over the next year (51%). However, newer asset classes are also gaining traction — nearly half (47%) of prospective ETF/ETP investors plan to allocate to crypto ETPs in the next 12 months, alongside 36% of current ETF investors who plan to do the same. Among 18-34-year-olds, crypto is already the most popular investment, held by 45% of respondents.

Building Confidence and Breaking Barriers

While investing is increasingly seen as a pathway to long-term financial well-being, many Americans remain on the sidelines. Commonly cited barriers include lack of knowledge, fear of financial loss, and the belief that they lack enough money to invest. For younger people, knowledge gaps are particularly pronounced, with 57% of those aged 18–34 citing these concerns, compared to 34% of those over 35.

Automated Investing Gains Ground

Americans of all ages are discovering they do not need large sums to begin investing. Instead, they are building habits through small, recurring contributions that align with their goals.

“We’re witnessing a pivotal moment as individual investors embrace ETFs for their efficiency and transparency. The predicted surge in first time ETF investors reflects a broader shift in investor preferences toward simplicity, accessibility, and digital-first experiences,” said Amy Jenkins, Head of U.S. Direct Investing at BlackRock. “We’re committed to expanding access to solutions that make recurring investing simple and intuitive through iShares ETFs — helping more Americans build wealth steadily, one contribution at a time.”

The survey reveals 38% of U.S. investors are interested in recurring investing plans. These approaches offer simplicity, discipline, and alignment with life goals. Investors aged 18-34 are also 50% more likely than those aged over 35 to choose ETFs for the ability to invest small amounts regularly.

About People and Money Spotlight

People & Money survey was conducted by YouGov Plc via an online survey, conducted between July 22 and August 3, 2025. The survey was conducted online by YouGov Plc with a sample of 5,220 nationally representative adults in the U.S. YouGov compensated survey participants. BlackRock sponsored the survey and is not affiliated with YouGov.

Source: BlackRock