Inflows into ETFs surpass $1 trillion in 2024, breaking the previous record.

• The decline in mutual fund popularity and the increase in investor confidence in financial markets have led to the growth of ETFs.
• This year, the Vanguard S&P 500 ETF (VOO) has experienced the highest demand, with approximately $100 billion in inflows, as per FactSet.
• According to ETFGI, U.S. ETFs currently have over $10 trillion in total assets.

The exchange traded fund industry recently surpassed $1 trillion of total inflows for the first time, according to research firm ETFGI and the Investment Company Institute.

The fund that has experienced the greatest demand this year is the one that has amassed approximately $100 billion, as per FactSet. The most rapidly expanding new fund is the iShares Bitcoin Trust (IBIT), which has attracted more than $34 billion since its inception in January.

The decline in mutual fund popularity and the increase in ETF confidence among U.S. investors have led to the growth of ETFs, with over $200 million in outflows from mutual funds this year, according to a Nov. 30 report from State Street Global Advisors. Some mutual fund managers have even converted their products into ETFs.

ETFGI reports that the previous record for U.S. ETF inflows was $920 billion in 2021, and the current assets under management are more than $10 trillion.