2025 investing recap: Market stories to spice up your holiday small talk
- AI went mainstream, and it’s revolutionizing how we work, invest, and make everyday decisions.
- Retail investors stayed busy, crypto found its footing, and some unusual collectibles reminded us that just because it’s trendy doesn’t make it an investment.
- ETFs are evolving, with big rulings and budding demand for active fixed income strategies.
We’re not here to talk politics, the Coldplay couple, or your car’s extended warranty.
But if you’d like to hold your own when your cousin starts pitching his latest meme stock idea, we’ve got you covered.
These are the investing stories worth knowing—the ones that’ll make you sound savvy (but not insufferable) at the dinner table this holiday season.
AI clocks in for a 24/7 shift
If 2023 was the year AI burst onto the scene, 2025 was the year it got a job. Artificial intelligence wove itself deeply into daily life—handling emails, summarizing meeting notes, answering impromptu questions (like whether penguins have knees), and even generating the eerily real content you thumb through online.
By July 2025, ChatGPT had around 700 million weekly active users, or roughly 10% of the world’s adult population.1 That usage is particularly concentrated among educated, professional, and younger users—nearly half of all messages come from adults under 26.
That said, maybe Skynet and the Matrix are still too fresh in people’s minds, because 50% of Americans are more concerned than excited about the increased use of AI in daily life.2
If someone asks, “Is this just another bubble?”
Probably not—or at least, not yet. While investor excitement has cooled a bit from last year’s frenzy, AI infrastructure continues to expand. The productivity gains are tangible, and adoption is spreading beyond tech firms into manufacturing, healthcare, and logistics. Even if a few high-flying names stumble, the broader trend has staying power.
What to know heading into 2026
Investors who want exposure can explore sector and thematic ETFs that hold companies driving AI adoption—from chipmakers to cloud providers.
Crypto grows up
Remember when crypto felt like the Wild West—feverish hype, rampant scams, and dog-themed coins? Fast-forward to 2025, and, well, a lot of that still exists. But like an angsty teen finally getting their learner’s permit, digital assets have matured as an asset class. Thanks in large part to new fund launches, clearer regulation, and growing institutional participation.
In January 2024, US regulators approved several spot Bitcoin and Ethereum ETFs, opening the floodgates for mainstream investment. Almost two flips of the calendar later, total crypto ETF assets have climbed to $221.42 billion worldwide3 and 77% of digital asset ETFs have posted positive inflows year-to-date.4
If someone asks, “So…is crypto actually legit now?”
In many ways, yes. The infrastructure looks more like traditional finance: regulated exchanges, institutional custody, and much needed transparency. Prices can still be volatile, but the ecosystem itself has matured.
Quick quiz
Which entity owns the most Bitcoin?
Correct!
With over 3% of the world’s BTC supply, Strategy Inc. (formerly known as MicroStrategy) actually has more total Bitcoin in its treasury reserves than the other three combined.
Sorry, wrong answer.
With over 3% of the world’s BTC supply, Strategy Inc. (formerly known as MicroStrategy) actually has more total Bitcoin in its treasury reserves than the other three combined.
What to know heading into 2026
Crypto’s evolution has made it easier for investors to participate without venturing into risky or opaque corners of the market. Exposure can now be gained through regulated ETFs. No cold wallets or private keys necessary.
Retail investors make waves
Wall Street wasn’t the only one moving markets this year—Main Street showed up too.
Retail investors now account for roughly one-quarter of total US equity trading volume,5 a major uptick from their pre-pandemic share, which typically hovered around 10%.6 And they’re not just day-trading meme stocks and cryptos anymore. Many are building portfolios around diversified ETFs, tax-advantaged accounts, and long-term goals (namely, retirement).
According to State Street’s 2025 Retail Investors by the Numbers Study, almost 9 in 10 investors participate in a workplace plan such as a 401(k) or pension. But less than half (48%) have a personal brokerage account, suggesting many might be overlooking opportunities to invest beyond their employer-sponsored retirement plans.7
If someone asks, “Where are retail investor flows going?”
Looking ahead, 24% of investors plan to allocate more to individual stocks, 30% to ETFs and mutual funds, and 11% to crypto or digital assets. Another 11% say they even plan to explore private investments.8
What to know heading into 2026
Even with that progress, many investors still hesitate to dip their toes into financial markets. When they have money left over each month, 56% put it into savings rather than investing,9 and only one in four strongly believe that gains from investing outweigh the risks.10
That mindset gap—between wanting to build wealth and feeling confident enough to do it—is one of the biggest opportunities ahead.
getting there starts here
We can’t predict your future. But we can help you create it. Discover how our solutions can fit in your portfolio.
Are ETFs getting promoted to the 401(k) club?
It didn’t quite dominate headlines like AI or Bitcoin, but one of 2025’s consequential market stories started with an SEC filing rather than a market rally.
In September 2025, the SEC signaled its intent to grant exemptive relief for the dual-share-class-structure, which would pave the way for asset managers to offer ETF share classes of their mutual funds. This means mutual fund and ETF investors could share the same underlying portfolio, but access it through different vehicles. At least 75 asset managers have filed applications for exemptive relief so far.11
Most media coverage has focused on just one side of the dual-share-class story: mutual funds adding ETF share classes. But the inverse—ETFs being able to add mutual fund share classes—would be just as significant. Because it could expand ETF access for 401(k) investors.
Right now, most 401(k)s and other defined contribution plans don’t offer ETFs. It’s not that plan sponsors or participants don’t want them, but the infrastructure of the retirement system wasn’t built for them.
Mutual fund share classes of ETFs would be a way for retirement plan participants to invest in an ETF strategy but through the mutual fund wrapper they’re already used to—and that their plans were built for.
What to know heading into 2026
The dual-share-class structure could blur the line between mutual fund and ETF investors—a long-standing divide (think Yankees vs. Red Sox) in how Americans invest. And it means that millions of 401(k) investors might finally get to play ball instead of sitting on the sidelines of ETF innovation and the $10 trillion industry’s remarkable growth.
People are loco for Labubus
Speaking of highly sophisticated topics…
If you’ve seen people lining up outside toy shops this year, it wasn’t for Jordans or iPhones.
It was for Labubus.
The wide-eyed, elf-eared vinyl figure became the latest must-have global collectible, selling out within minutes of release and fetching hundreds of dollars on resale markets. The collective hype sent collectors (and flippers) into a frenzy—proof that nostalgia and scarcity still make a potent brew.
If someone asks, “…What?”
Just shake your head, sigh, and say value is subjective.
What’s not subjective is that Pop Mart (the China-based toymaker behind the toy) is raking in revenue. Roughly $862 million (about 44%) of the company’s 1H 2025 revenue was attributed to sales of Labubus and fellow plush products.12
What to know heading into 2026
You never know what the next big collectible craze will be. Still, we wouldn’t recommend investing in dolls over more conventional assets. If your “investment” needs bubble wrap or shelf space, it might belong under passions, not positions.
Quick quiz
Which collectible sold for $170,000 at auction in 2025?
Correct!
A human-sized Labubu sculpture sold for about $170,000 in China. That still pales in comparison to the all-time record for a sports card: a nearly flawless 1952 Mickey Mantle card, which sold for $12.6 million in 2022.
Sorry, wrong answer.
A human-sized Labubu sculpture sold for about $170,000 in China. That still pales in comparison to the all-time record for a sports card: a nearly flawless 1952 Mickey Mantle card, which sold for $12.6 million in 2022.
Bonds have their fun in the sun
Bonds aren’t usually the life of the party. But, contrary to popular belief, bonds love to party. Especially active ones.
Drawn by the combination of attractive yields and professional management, investors poured record amounts into active fixed income ETFs this year—global net inflows through September 30, 2025 were $141.35 billion.13 Considering all the hubbub around rates lately, that’s not a surprise.
The ETF structure gives investors instant access to diversified bond exposure, daily liquidity, and transparent pricing. The active management layer on top offers the potential to respond to rate changes, credit shifts, and market volatility in real time.
If someone asks, “Wait, aren’t ETFs supposed to be passive?”
They were, at first. Active ETFs have since taken a seat at the table. In fact, active ETFs captured $330.7 billion in 2024—22.24% of all ETF inflows globally.14 And in the first three quarters of 2025, they’ve brought in $391 billion (30% of global ETF inflows).15
Active fixed income ETFs still trade like traditional ETFs, but managers can adjust holdings to take advantage of opportunities—for example, tactically adjusting exposures as credit fundamentals and market conditions shift.
What to know heading into 2026
Amid still elevated yields, expect demand for flexible, transparent bond ETFs to keep climbing—especially among income-focused investors looking to diversify or fine-tune their bond portfolios.
Private credit goes public
Earlier this year, investing took a big step into new territory: the launch of a liquid ETF structure designed to give everyday investors access to what was once an exclusive corner of finance—private credit.
Private credit refers to the many types of privately negotiated loans between a borrower—from budding businesses to beloved brands—and a non-bank lender. Private credit enables borrowers to access capital with customized financing details, giving them more flexibility and speed of lending: The build-your-own-loan style of credit many banks can’t offer.
Today, the addressable market for private credit is upwards of $40 trillion, most of it investment-grade.16 Historically, this market was locked behind long time horizons and high minimums (aka, the playground of institutional investors).
Now, more investors have a way to participate through publicly traded vehicles that package those loans in a more accessible format. This allows more investors to access attractive yields relative to public markets—without diving into below investment-grade credit.
If someone asks, “Why should I care about private credit?”
Incredulously, you can reply, “Don’t you care about risk-adjusted returns?” Unlikely financial debate aside, the general appeal is higher income potential and diversification away from public markets. But keep in mind private credit investments may require more due diligence and liquidity can vary based on the structure of the loan or loans you invest in.
What to know heading into 2026
As new funds trickle into the market, pay attention to what a fund actually owns. If you do dip your toe into these waters, you could treat private credit as part of the “plus” in your core-plus fixed income allocation. It’s meant to complement, not replace, your broader fixed income allocation.
Hold up: What is private credit? And why should I pay attention?
Take a step back and explore the growing private credit asset class that provides non-bank financing—and why it may be a compelling source of diversification for today’s investors.
‘Tis the season for perspective
If there’s one thing the markets and the holidays have in common, it’s that both remind us how much can change in a year.
In 2025, we saw new rules, new technologies, and more than a few surprises.
As 2026 approaches, maybe that’s the best takeaway of all: that investing, like the holidays, is about perspective. A little patience, a sense of humor, and an eye on what truly matters go a long way.
So, before the ball drops—or your cousin starts soliciting you for seed money in his new cat crypto (cue the Don Draper meme)—take a breath, check your plan, and toast to progress. Because getting there doesn’t happen overnight.
getting there starts here
We can’t predict your future. But we can help you create it. Discover how our solutions can fit in your portfolio.