ETF industry growing with $15 trillion in assets, active ETFs surpass passive, making illiquid assets accessible.

From Investing.com: 2024-12-22 05:00:00

The ETF industry hit $15 trillion in assets, with $1.6 trillion in inflows and 1,485 new funds launched in 2024, reshaping global markets.

Despite losses, Treasury ETFs attracted $28 billion while sectors like energy and gold saw outflows, narrowing divergences in asset performance and ETF flows.

Active ETFs surpassed passive launches in 2024, with over 120 mutual funds converting to ETFs, reversing outflows.

ETFs are making illiquid assets accessible, with AUM in CLO funds surging 245% and sector-specific funds like industrials and defense outperforming legacy indexes.

Non-U.S. ETFs attracted $583 billion in inflows, accounting for 38% of total, with 2.1 funds domiciled abroad for every U.S.-listed ETF.

ETFs are becoming more sophisticated, with some using AI, investing in derivatives and cryptocurrencies, expanding their reach beyond traditional assets.

VOO, with a lower expense ratio, could surpass SPY as the largest ETF by 2026, as ETFs continue to redefine investing in 2025.



Read more at Investing.com: How ETFs are remaking the market By Investing.com