ETF inflows in 2024 exceeded $1.1 billion, breaking earlier report

It is official: 2024 was a report 12 months for ETF inflows. In the end, $1.12 trillion flowed into U.S.-listed exchange-traded funds through the 12 months, almost double the $600 billion in inflows seen in 2022 and 2023, respectively.

Capital inflows in 2024 additionally far exceeded 2021’s $900 billion, the earlier calendar 12 months’s report inflows.

A powerful 12 months in U.S. inventory returns has spurred buyers to put money into ETFs. The S&P 500 has surged 25% in 2024, almost matching the earlier 12 months’s 26.3% acquire. That is the primary case of consecutive positive aspects of 20% or extra for the S&P 500 because the late Nineteen Nineties.

Not surprisingly, given the energy of U.S. shares, buyers are placing most of their cash into inventory ETFs.

Two-thirds of all capital flows, or greater than $750 billion, had been invested in fairness ETFs.

Of this sum, an unimaginable $113 billion was spent on Vanguard S&P 500 ETF (VOO). and a further $85 billion was spent on iShares Core S&P 500 ETF (IVV).

2024 marked the primary time a person ETF noticed inflows of greater than $100 billion in a calendar 12 months.

VOO now has $584 billion in property below administration, pushing it previous $626 billion. SPDR S&P 500 ETF Trust (SPY) because the world’s largest ETF (SPY noticed inflows of roughly $22 billion in 2024).

The S&P 500’s sturdy returns had been fueled by tech shares like Nvidia Corp. and Apple Inc. These shares, that are much more current within the Invesco QQQ Trust (QQQ)has ridden the AI ​​wave and made large positive aspects in 2024.

QQQ recorded inflows of almost $24 billion in 2024.

Whereas U.S. shares have celebrated sturdy returns and capital inflows, the identical can’t be mentioned for fixed-income ETFs.

The iShares Core US Mixture Bond ETF (AGG) ended the 12 months with a return of simply 1.3%. An enormous sell-off in bonds on the finish of the 12 months erased positive aspects made firstly of the 12 months.

But regardless of modest returns, buyers have invested $303 billion in fixed-income ETFs, together with $21 billion in AGG and almost $19 billion in ETFs. Vanguard Total Bond Market ETF (BND).

Whereas bonds have struggled in 2024, one other asset class has taken off. Cryptocurrency ETFs, which entered a brand new period with the approval of spot bitcoin ETFs in January 2024, have soared whereas attracting billions of {dollars} in inflows.

THE iShares Bitcoin Trust (IBIT) recorded inflows of over $37 billion through the 12 months, propelling its property below administration to over $50 billion. The worth of the ETF has doubled over the identical interval.

Inflows for the class as an entire totaled $38 billion regardless of outflows of $21 billion from the Grayscale Bitcoin Trust (GBTC). Beforehand a quasi-closed fund, the conversion of GBTC into an ETF precipitated huge outflows as arbitrageurs closed their positions and buyers swapped the fund for cheaper alternate options.

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