Funds Democratize Investing in the United States
Regulated funds have broadened participation in American capital markets, with ownership rising significantly among middle- and lower-income households over the past two decades, according to data published recently by the Investment Company Institute (ICI).
ICI survey research finds that over the past two decades, the number of households owning regulated funds increased from 50.6 million to 76.0 million in 2025 (Figure 1). The bulk of these households, nearly 73 million, own mutual funds. Meanwhile, rapid growth in the ownership of exchange-traded funds (ETFs) means there are now about 20 million US households that own ETFs.
These data dovetail with research from the Federal Reserve Board’s Survey of Consumer Finances (SCF), which shows rising ownership of stocks in the United States more broadly.
Figure 1
US Households’ Fund Ownership Has Risen over Time
Millions of US households that own regulated funds
Note: Regulated funds refers to US-registered investment funds and includes mutual funds, exchange-traded funds (ETFs), closed-end funds (CEFs), and unit investment trusts (UITs).
Source: Investment Company Institute Annual Mutual Fund Shareholder Tracking Survey and US Census Bureau
Funds Connect the American Middle Class to Investing
Regulated funds have introduced millions of US households to investing and have become well established as a reliable investment vehicle for middle-class families.
The share of middle-income households owning US-registered investment funds rose from 46% in 2005 to 59% in 2025, and the largest percentage-point increase occurred in the second income quintile (Figure 2).
This expanding pool of investors also included significantly more lower-income households. Indeed, the regulated fund ownership rate among the lowest income quintile of households more than doubled over the past two decades.
Figure 2
Middle-Income Households’ Ownership of Regulated Funds Increased over the Past Two Decades
Percentage of US households within each income quintile group owning US-registered investment funds
*Middle income includes the second, third, and fourth income quintiles.
Note: Household income in 2005 is total household income before taxes in 2004 reported in 2024 C-CPI-U adjusted dollars. Household income in 2025 is total household income before taxes in 2024. US-registered investment funds include mutual funds, exchange-traded funds (ETFs), closed-end funds (CEFs), and unit investment trusts (UITs).
Sources: Investment Company Institute Annual Mutual Fund Shareholder Tracking Survey, US Census Bureau, and US Bureau of Labor Statistics
Fund Owners Are Working Families and Retirees Across All Income Levels
Nearly two-thirds of regulated fund−owning households are employed and a majority of them are employed full-time (Figure 3). In 2025, 35% of regulated fund−owning households report that they are retired from their lifetime occupations. Regulated fund ownership reaches across the full income distribution in the United States: 62% of households that own US-registered investment funds have less than $150,000 in household income. Their median household income is $124,000.
Figure 3
Employment Status and Income of Households Owning Regulated Investment Funds
Percentage of US households owning US-registered investment funds, 2025
| Employment status1 | |
| Employed full-time | 54 |
| Not retired | 53 |
| Retired from lifetime occupation | 1 |
| Employed part-time | 10 |
| Not retired | 6 |
| Retired from lifetime occupation | 4 |
| Not employed | 36 |
| Not retired | 6 |
| Retired from lifetime occupation | 30 |
| Total household income2 | |
| Less than $25,000 | 5 |
| $25,000 to $34,999 | 3 |
| $35,000 to $49,999 | 6 |
| $50,000 to $74,999 | 14 |
| $75,000 to $99,999 | 13 |
| $100,000 to $149,999 | 21 |
| $150,000 to $249,999 | 25 |
| $250,000 or more | 13 |
| Median | $124,000 |
| Mean | $153,900 |
1Figure reports employment status of the household respondent.
2Total reported is household income before taxes in 2024.
Note: US-registered investment funds include mutual funds, exchange-traded funds (ETFs), closed-end funds (CEFs), and unit investment trusts (UITs).
Source: Investment Company Institute Annual Mutual Fund Shareholder Tracking Survey
Fund Investors Are Saving for Life’s Important Financial Goals
Funds play a key role across the lifecycle for American households. Fund investing appeals to all age groups: 34% of regulated fund−owning households are younger than 45, 35% are aged 45 to 64, and 31% are aged 65 or older.
In 2025, 86% of fund-owning households indicated that saving for retirement was one of their household’s financial goals; 29% indicated saving for an emergency was a goal; and 13% said saving for education was among their financial goals.
Widespread Fund Ownership Allows Americans to Share in the Wealth
US households allocate their assets differently than those in bank-centric economies, with data showing Americans hold a higher share in financial markets—a sign of more democratized access to capital markets.
In aggregate, US households had about one-quarter of their financial assets invested in regulated funds at year-end 2024 and only 12% in deposits, while bank-centric economies see much higher deposit concentrations. This fund ownership spans all income and age groups, with 56% of US households owning mutual funds, ETFs, or CEFs, giving them access to stock and fixed-income securities markets through cost-effective, professionally managed, diversified fund portfolios.
Learn More
Reported results are from the Investment Company Institute Annual Mutual Fund Shareholder Tracking Survey. ICI conducted the most recent survey from May to June 2025, drawing a sample of 9,021 US households from the KnowledgePanel®, administered by Ipsos. For additional detail, see “Ownership of Mutual Funds and Shareholder Sentiment, 2025,” “Characteristics of Mutual Fund Investors, 2025,” “Profile of Mutual Fund Shareholders, 2025,” and “Profile of ETF-Owning Households, 2025.”