U.S. Households Embracing ETFs: Why are They Becoming the Default Investment Tool?

Exchange-Traded Funds (ETFs) have become a mainstream investment vehicle, reaching a record 12.8% of U.S. households as of 2024, according to data from the Investment Company Institute and the U.S. Census Bureau. This represents an impressive surge from just two decades ago when ETFs were primarily used by institutional investors. Today, thanks to user-friendly platforms like Robinhood, Fidelity, and Schwab, ETFs are accessible to all, allowing individuals to invest in equities, bonds, and even cryptocurrency at minimal cost.