How Advisors Are Tapping New ETF Strategies in 2026

Core Insights - The ETF industry experienced significant growth in 2025, with nearly 800 new ETFs launched in the first three quarters, surpassing the total of 746 in 2024, indicating a robust expansion in the market [2] - Global ETF flows reached over $1.4 trillion this year, with US trading volumes nearing $60 trillion, highlighting the increasing popularity and utilization of ETFs among investors [2] Industry Trends - ETFs are evolving from mere portfolio building blocks to tools for managing taxes, hedging against inflation, and reducing risk, reflecting a shift in their application within investment strategies [3] - Buffered and defined outcome ETFs are expected to gain traction, particularly among pre-retirees and cautious investors, as they offer downside protection while providing better upside potential compared to cash or fixed income [4] Client Concerns - Inflation concerns are prompting advisors to incorporate ETF-based hedges such as gold, TIPS, and commodities into client portfolios, with gold serving as both crisis insurance and an inflation hedge [5] - Advisors are advised to conduct thorough due diligence on new ETF products, particularly those with complex structures, to ensure clients have realistic expectations regarding their performance and protective features [4]