ETFs have become the scaffolding of modern investing, and record trading volumes in 2026 show just how central they now sit in portfolio construction.

That was the core message from Valerie Grimba, director of global ETF strategy at RBC Capital Markets, in a discussion on Bloomberg ETF IQ with Scarlet Fu and Katie Greifeld. Grimba argued that investors increasingly treat exchange-traded funds as building blocks rather than tactical side bets, a shift that reflects both the maturity of the ETF market and the growing demand for flexible, low-friction portfolio tools.

“ETFs are building blocks in portfolios,” Grimba said, framing a market where investors now use the products as core tools rather than niche trades.

The timing matters. Reports indicate ETF trading activity has climbed to record levels in 2026, underscoring how deeply these products have penetrated everyday investing. But that rise in volume also comes with a challenge: the market keeps expanding, and investors must sort through a widening menu of funds, strategies, and exposures. More choice can sharpen a portfolio, but it can also raise the risk of confusion if buyers chase themes without understanding what they own.

Key Facts

  • Valerie Grimba discussed ETF trends on Bloomberg ETF IQ.
  • Grimba said investors now use ETFs as core portfolio building blocks.
  • ETF trading volumes have reached record levels in 2026.
  • The ETF market continues to expand, giving investors more options to navigate.

That tension sits at the center of the current ETF story. On one hand, investors want simple, tradable instruments that can help them adjust portfolios quickly. On the other, the proliferation of products means not every ETF serves the same purpose, even when labels sound similar. Sources suggest investors and advisors alike now need to focus less on the wrapper itself and more on what sits inside it—costs, exposures, strategy, and fit.

What comes next will shape more than the ETF industry. If record volumes continue and product growth accelerates, ETFs could deepen their role as the default architecture of retail and institutional portfolios alike. That matters because the tools investors choose do more than track markets—they influence how quickly money moves, how risk gets packaged, and how the next generation of portfolios takes shape.