Crypto ETFs are entering a new phase of rapid expansion in 2025, driven by favorable U.S. regulatory changes and surging investor demand. According to CFRA’s latest Thematic Research, crypto ETFs attracted $29.4 billion in inflows through August 11, 2025, while the iShares Bitcoin Trust (IBIT) delivered a 28.1% return year-to-date.

• Regulatory Breakthroughs: The GENIUS Act established the first federal stablecoin framework, while the CLARITY Act advanced in Congress, setting the stage for greater oversight and transparency.
• SEC Approval of In-Kind Creations/Redemptions: A pivotal ruling allowing more efficient ETF operations, alongside approvals for mixed Bitcoin-Ether ETPs and options trading.
• Pro-Crypto Administration Policies: The creation of a Strategic Bitcoin Reserve and executive orders to democratize access to digital assets in retirement plans further accelerated institutional adoption.

As a result, the U.S. now hosts 76 spot and futures crypto ETPs with $156 billion in assets, representing exponential growth since the first launches in 2021. With IBIT already ranked among the top U.S. ETFs by flows and assets, CFRA sees it positioned as a prime beneficiary of regulation-driven adoption.

This report provides a detailed breakdown of the legislative and regulatory milestones, flow and performance data, and the market outlook for crypto ETFs as regulation and interest rates shape the next phase of growth.

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The passage of the One Big Beautiful Bill in the U.S. House has ignited new momentum in ETF markets, with sector-specific ETFs already reacting to the sweeping policy changes embedded in the proposed legislation. While the Senate will likely revise the bill, early signals suggest significant consequences across multiple segments—including healthcare providers, clean energy, defense contractors, and rate-sensitive sectors like long-term Treasuries and residential REITs.

CFRA’s preliminary analysis identifies both winners and losers:

• Winners: iShares U.S. Aerospace & Defense ETF (ITA) may benefit from the bill’s $150 billion defense funding injection, boosting firms like Lockheed Martin, RTX, and Palantir.
• Losers: Healthcare and managed care ETFs, including iShares U.S. Healthcare Providers ETF (IHF), are exposed to accelerated Medicaid work requirements.
• Clean Energy ETFs like ICLN and TAN face policy headwinds due to revised IRA tax credit rules.
• Long-Term Treasury ETFs such as TLT are at risk from weakened demand amid rising debt issuance forecasts.

For ETF investors, understanding how fiscal policy reshapes sector allocations is critical. As always, ETF flows may not always align with long-term returns, especially when investor sentiment tries to front-run government policy.

For a deeper dive into specific ETFs, holdings, and fundamental equity views across healthcare, clean tech, and defense industries, access the full report.

From geopolitical shocks to surprise tariffs and the steady march of innovation, ETF markets are evolving fast. In the full video, our research team breaks down the biggest stories so far this year:

• Tariffs: Unexpected scope has hit some countries and sectors hard—while others, like Brazil and low-volatility equity strategies, are holding up well.
• Private Credit ETFs: Products like PRIV are opening new doors for retail and institutional investors, but the details of holdings still matter.
• Fee Cuts: Vanguard is leading a new wave of cost compression, which could reshape investor returns and fund flows.

Following the announcement of 10% reciprocal tariffs and increased levies on countries with large trade surpluses, markets tumbled—but not all ETF categories moved the same way. Defensive sector ETFs like food, gold miners, and health care weathered the selloff, while retail, banking, and semiconductors experienced steep losses. Country ETFs diverged sharply as well, with Brazil seeing modest gains and Vietnam sinking over 10%.

This timely CFRA Thematic Research report, powered by data from the FUNDynamix platform, breaks down the performance impact across sectors, regions, and asset classes. Despite the market shock, these movements offer valuable clues for investors on how future tariff negotiations and retaliatory measures could play out.

Our policy experts anticipate litigation against the proposed tariffs—with just a 35% chance of success—and note the potential for upcoming bilateral trade talks to influence which sectors and ETFs remain most exposed.

If you’re managing exposure to trade-sensitive sectors or looking to position defensively amid global economic uncertainty, this report provides actionable, data-backed insights into ETF behavior during real-world policy volatility.

What You’ll Learn

In this exclusive research report, you will gain insights into:

• Which equity sectors and country ETFs performed best and worst following the April 2025 tariff news
• Why defensive strategies like food, gold, and health care ETFs outperformed amid volatility
• The unexpected decline in energy ETFs and the sector-specific impacts of import-dependent companies
• How country ETFs like Brazil and Vietnam reacted to tariff announcements
• CFRA’s outlook on trade-related litigation and potential bilateral negotiations that may shape ETF performance in 2025

The $500+ billion dividend ETF market just experienced a pivotal shake-up. The annual reconstitutions of the largest U.S.-listed dividend ETFs in March 2025 created a significant divergence in sector exposures, setting the stage for highly varied performance throughout the year.

This timely CFRA Thematic Research dives deep into the rebalancing outcomes, with SCHD emerging as the outlier — sharply increasing its Energy sector weight while trimming exposure to Financials. By contrast, peers like Vanguard’s VIG and VYM leaned further into Financials and Health Care.

As tariffs, inflation, and sector rotations continue to dominate the market narrative, understanding these ETF composition shifts is critical for portfolio positioning. Investors can no longer assume dividend ETFs will behave uniformly. Yield, diversification, and sector exposure differ significantly — creating both opportunities and hidden risks depending on how markets evolve.

This report provides investors, advisors, and strategists with a detailed breakdown of each ETF’s sector allocations, methodological differences, and the implications for dividend-focused portfolios. Whether you’re seeking defensive positioning or yield optimization, knowing how these ETFs stack up after the reconstitution is essential for making informed decisions in 2025.

This report is a valuable resource for institutional investors, portfolio managers, and anyone seeking a disciplined, technically grounded perspective during uncertain times.

What You’ll Learn

In this exclusive research report, you will gain insights into:

• How the March 2025 index reconstitution changed the sector exposures of SCHD, VIG, VYM, and DGRO
• Why SCHD now holds the highest Energy exposure among major dividend ETFs — and what that means for investors
• The key methodological differences between dividend ETFs and how they impact yield and risk
• The potential performance divergence between ETFs based on sector performance, particularly Energy, Financials, and Consumer Staples
• CFRA’s perspective on how dividend ETF flows may accelerate in response to market uncertainty and tariff concern

Recent market dynamics suggest a notable shift in ETF performance. After two years of stellar U.S. equity performance, driven by major tech stocks, the investment landscape is evolving rapidly. CFRA’s latest thematic research reveals how proposed tariffs and changing inflation expectations are significantly influencing ETF performance, favoring non-U.S. equities—particularly Chinese tech and European defense stocks.

In this insightful report, you’ll discover:

• Why U.S. equity ETFs are underperforming their global counterparts since recent tariff proposals.
• How shifting U.S. Federal Reserve rate expectations are reshaping investment outlooks.
• Key global sectors driving significant gains outside the U.S., including detailed analysis of Chinese tech and European defense industry ETFs.

Download the full research now to uncover strategic opportunities and position your investments wisely.