U.S. exchange-traded funds crossed a significant milestone in 2024, with property climbing 28% to $10.36 trillion, pushed by market appreciation and $1.12 trillion in web inflows, in line with a brand new report from CFRA.
The record-breaking 12 months indicators a shift in how traders are accessing markets, with growth-oriented themes and energetic administration methods reshaping the historically index-dominated ETF panorama, in line with Aniket Ullal, head of ETF analysis at CFRA.
The Hashdex Bitcoin Futures ETF (DEFI) led all classes with a 109.4% return in 2024, primarily based on CFRA information.
Tech-focused funds additionally carried out effectively, with the Roundhill Magnificent Seven ETF (MAGS) returning 62.7% and the Defiance Quantum ETF (QTUM) gaining 50.4%, the report confirmed.
Lively ETF methods captured 24.6% of whole inflows in 2024, up from 14.6% in 2022, in line with CFRA’s evaluation.
The pattern got here largely on the expense of sensible beta merchandise, which noticed inflows drop to 7.7% from 18.7% over the identical interval, the analysis discovered.
Vanguard and BlackRock maintained their trade dominance, capturing a mixed 53% of all ETF inflows in 2024, in line with the CFRA report.
The Vanguard S&P 500 ETF (VOO) attracted essentially the most new property with $115.1 billion in inflows, adopted by the iShares Core S&P 500 ETF (IVV) with $86.5 billion, the report revealed. The iShares Bitcoin Belief (IBIT) captured third place with $37.5 billion in inflows throughout its first 12 months of buying and selling.
JPMorgan, in the meantime, confirmed rising affect within the energetic house, capturing 3.9% of whole flows regardless of holding simply 1.6% of property initially of 2024, the analysis revealed.
Lively ETF issuers continued to achieve market share all through 2024, the report highlighted.
Dimensional Fund Advisors and Capital Group exemplified this pattern, with each corporations capturing extra flows than their market share would counsel, in line with the report.
The World X MSCI Argentina ETF (ARGT) gained 61.6% in 2024, pushed by investor optimism round Argentina President Javier Milei’s reform agenda, in line with the analysis. The gaming sector additionally confirmed energy, with the VanEck Video Gaming and eSports ETF (ESPO) rounding out the highest 5 performers.
Conventional listed ETFs nonetheless maintained their attraction, with annual inflows rising 89% to $759.3 billion in 2024 from $402.4 billion in 2022, in line with the information.
Trying forward, CFRA initiatives 2025 ETF inflows between $500 billion and $1 trillion, with potential upside if the Securities and Alternate Fee approves ETFs as a mutual fund share class.
