From Morningstar.: 2024-10-22 06:31:00

The global ETF industry has seen net inflows of $947 billion in the first half of 2024, aiming to surpass $1 trillion by year-end, making it a possible record year in total growth. Annual growth rates have been significantly higher than previous years, with global assets reaching $13.4 trillion, boosted by $1.3 trillion in flows, as per a Morningstar report.

Traditional equity and bond ETFs are still the preferred choice for investors, capturing 96% of total flows in 2024. Bond funds have set new records with flows reaching $127 billion in the third quarter alone, showing strong organic growth of 13.5% year-to-date, highlighting the enduring popularity of these traditional ETF strategies.

In Europe, ETFs are flourishing, with net flows surpassing €161 billion in the first nine months of 2024, exceeding the total for 2023. Total assets have exceeded €2 trillion for the first time, indicating a significant growth trajectory. Equities have been the top performers, with net inflows of €118.6 billion since the beginning of the year.

2024 has witnessed a surge in active ETFs, with assets soaring from $683 billion to $973 billion in just one year. Active ETFs, which are actively managed as opposed to passively tracking an index like traditional ETFs, have experienced an organic growth of 33% compared to 7% for passive ETFs.

The US leads in terms of total assets and issuing companies in the global ETF market, but Europe is showing robust growth, with 2024 poised to be a record year. Top players in Europe include iShares, Amundi, and Xtrackers, with assets exceeding $2 trillion for the first time in history, marking a significant milestone and growth of the industry.



Read more at Morningstar.: Will 2024 be a Record Year For ETF Flows?