Why the Experts Are Bracing for a 15% Reality Check in 2026

Welcome to ETF Zoo, where we check in on the latest happenings in the wild world of ETFs. In the first episode of ETF Zoo in the new year, we talk about the record-breaking capital flows of 2025 and make bold predictions for 2026. The conversation focuses on the "new normal" of massive daily inflows, the entry of major banking players into the crypto space, and the growing skepticism surrounding the market's continued bullish streak.

ETF.com hosts Dave Nadig, President & Director of Research, and Sumit Roy, Senior ETF Analyst, are joined this week by Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence; Cinthia Murphy, Investment Strategist at TMX VettaFi; and Todd Sohn, Senior ETF & Technical Strategist for Strategas Securities.

This podcast is available to listen to on Spotify and Apple Podcasts. If you prefer to watch the full video recording, you can find that here or on our YouTube channel. 

Top Takeaways:

• The recent surge in ETF flows may indicate a new normal for the market.
• Morgan Stanley's entry into crypto ETFs reflects a growing trend among traditional financial institutions.
• The success of new ETFs may depend on their branding and perceived reputational risk.
• Advisors are bullish on the market but also focused on risk management and diversification.
• The rise of crypto ETFs could lead to broader acceptance of diversified crypto investments.
• Market sentiment can shift quickly, and advisors are preparing for potential downturns.
• The ETF landscape is evolving with more products targeting niche markets and investor needs.
• Mergers and acquisitions in the ETF space are expected to increase as competition grows.
• The popularity of ultra-short-term bond ETFs is on the rise, reflecting changing investor preferences.

Discover the news, data, and voices shaping the ETF community. Follow along here.