ETFs Surpass $1 Trillion in Inflows for 2024, Setting a New Industry Record
Key Highlights:
Exchange-traded funds (ETFs) attracted over $1 trillion in inflows this year, a milestone that underscores growing investor confidence.
The Vanguard S&P 500 ETF (VOO) led the pack, securing $100.1 billion in inflows.
U.S. ETFs now manage more than $10 trillion in total assets, according to ETFGI.
The fastest-growing new fund, iShares Bitcoin ETF (IBIT), pulled in $34.8 billion since its January launch.
Record-Breaking Year for ETFs
2024 marked an unprecedented year for the ETF industry as inflows soared past $1 trillion for the first time, reflecting the increasing popularity of ETFs over mutual funds. This shift highlights U.S. investors' confidence in financial markets and a growing preference for cost-effective and flexible investment products.
The Vanguard S&P 500 ETF (VOO) led all funds in demand, collecting $100.1 billion, while the iShares Core S&P 500 ETF (IVV) followed with $61 billion in inflows. Other top performers include:
iShares Bitcoin ETF (IBIT): $34.8 billion
Vanguard Total Stock Market ETF (VTI): $26.7 billion
Invesco QQQ Trust (QQQ): $26.6 billion
Mutual Funds Losing Ground
As ETFs thrived, mutual funds saw outflows exceeding $200 billion this year, according to a report from State Street Global Advisors. Many mutual fund managers are converting their offerings into ETFs to adapt to the changing landscape.
The previous U.S. ETF inflow record of $920 billion, set in 2021, has been shattered, and total ETF assets have now surpassed $10 trillion.
This remarkable growth in the ETF market not only reflects investors' shift toward more innovative and efficient investment vehicles but also highlights the waning dominance of traditional mutual funds. As the industry heads into 2025, ETFs are expected to play an even larger role in shaping investment trends.
Key Highlights:
Exchange-traded funds (ETFs) attracted over $1 trillion in inflows this year, a milestone that underscores growing investor confidence.
The Vanguard S&P 500 ETF (VOO) led the pack, securing $100.1 billion in inflows.
U.S. ETFs now manage more than $10 trillion in total assets, according to ETFGI.
The fastest-growing new fund, iShares Bitcoin ETF (IBIT), pulled in $34.8 billion since its January launch.
Record-Breaking Year for ETFs
2024 marked an unprecedented year for the ETF industry as inflows soared past $1 trillion for the first time, reflecting the increasing popularity of ETFs over mutual funds. This shift highlights U.S. investors' confidence in financial markets and a growing preference for cost-effective and flexible investment products.
The Vanguard S&P 500 ETF (VOO) led all funds in demand, collecting $100.1 billion, while the iShares Core S&P 500 ETF (IVV) followed with $61 billion in inflows. Other top performers include:
iShares Bitcoin ETF (IBIT): $34.8 billion
Vanguard Total Stock Market ETF (VTI): $26.7 billion
Invesco QQQ Trust (QQQ): $26.6 billion
Mutual Funds Losing Ground
As ETFs thrived, mutual funds saw outflows exceeding $200 billion this year, according to a report from State Street Global Advisors. Many mutual fund managers are converting their offerings into ETFs to adapt to the changing landscape.
The previous U.S. ETF inflow record of $920 billion, set in 2021, has been shattered, and total ETF assets have now surpassed $10 trillion.
This remarkable growth in the ETF market not only reflects investors' shift toward more innovative and efficient investment vehicles but also highlights the waning dominance of traditional mutual funds. As the industry heads into 2025, ETFs are expected to play an even larger role in shaping investment trends.