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ETFs Cross $1 Trillion in Annual Inflows, Surging to New Records in 2024
The U.S. exchange-traded fund (ETF) market achieved a historic milestone in 2024, with investors channeling more than $1 trillion into these versatile investment vehicles, according to a report by The Wall Street Journal. This unprecedented inflow underscores growing investor confidence and sets a robust foundation for continued growth in 2025.
Data from ETFGI reveals that total assets under management in ETFs soared 30% through November, reaching a record $10.6 trillion. The bulk of this growth came from inflows into funds tracking major U.S. stock indexes. S&P 500-focused ETFs led the charge, followed closely by the Nasdaq-tracking Invesco QQQ, highlighting the enduring appeal of large-cap equities and technology stocks.
Stock Funds Dominate, but Bond Funds Grow Rapidly
Equity-focused ETFs significantly outpaced their bond counterparts in terms of absolute inflows, as investors continued to favor stock markets amid economic resilience and favorable corporate earnings. However, bond funds experienced faster growth from their initial base, reflecting rising interest among investors seeking diversification and stability amid potential market volatility.