U.S. exchange-traded funds crossed a milestone in 2024, with assets rising 28% to $10.36 trillion, driven by higher market caps and $1.12 trillion in net inflows, according to a new report from the CFRA.
The record-breaking year signals a shift in how investors access markets, as growth-oriented themes and active management strategies reshape the traditionally index-dominated ETF landscape, according to Aniket Ullal, head of ETF research at CFRA.
the Hashdex Bitcoin Futures ETF (DEFI) It topped all categories with a 109.4% return in 2024, based on CFRA data.
Technology-focused funds also performed well, with Roundhill Magnificent 7 ETF (MAGS) Return of 62.7% and Defiance Quantum ETF (QTUM) The report showed an increase of 50.4%.
Active ETF strategies accounted for 24.6% of total inflows in 2024, up from 14.6% in 2022, according to a CFRA analysis.
The research found that this trend has largely come at the expense of smart demo products, which saw flows fall to 7.7% from 18.7% over the same period.
Vanguard and Black Rock It maintained its dominance of the industry, accounting for 53% of all ETF flows in 2024, according to a CFRA report.
the Vanguard Standard & Poor’s 500 ETF (FU). It attracted the most new assets with inflows amounting to $115.1 billion, followed by iShares Core S&P 500 ETF (IVV) The report revealed $86.5 billion. the iShares Bitcoin Trust (IBIT) It ranked third with flows amounting to $37.5 billion during the first year of trading.
JP MorganAt the same time, it showed increasing influence in the active space, accounting for 3.9% of total flows despite holding just 1.6% of assets at the start of 2024, the research revealed.
The report highlighted that active ETF issuers continued to gain market share throughout 2024.
Dimensions Fund Advisors and Capital Group This trend exemplified, with both companies capturing larger flows than their market share would suggest, according to the report.
the GlobalXMSCI Argentina ETF (ARGT) It rose 61.6% in 2024, driven by investor optimism about Argentine President Javier Miley’s reform agenda, according to the research. The gaming sector also showed its strength, with VanEck Esports and Video Games ETF (ESPO) Rounding up the top five artists.
Traditional indexed ETFs still maintain their appeal, with annual inflows growing 89% to $759.3 billion in 2024 from $402.4 billion in 2022, according to the data.
Looking ahead, CFRA expects 2025 ETF flows to range between $500 billion and $1 trillion, with a potential rise if the SEC approves ETFs as a mutual fund share class.
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