Global markets rallied in 2024 with record ETF inflows, strong options trading growth

From Nasdaq: 2025-01-23 18:05:42

In 2024, global markets rallied to new all-time highs as interest rates fell, driven by consumer spending and earnings recoveries, especially in AI companies, leading to outperformance of the Nasdaq-100® and U.S. large-cap indexes. U.S. ETF industry saw record inflows, surpassing $1 trillion for the first time, with most new ETFs being actively managed portfolios. Not all U.S. ETFs hold U.S. stocks, with assets including bond ETFs, international stocks, and commodities/currencies. Top ETFs in 2024 were diversified, with most flows in U.S. large cap and rotation into new Bitcoin ETFs.

Quarterly volumes rose in 2024, driven by trading of sub-$1 stocks, while trading in higher-priced stocks remained unchanged despite stock splits. Off-exchange trading hit new records, accounting for over 50% of all ADV on 37 days. Options trading saw strong growth, with options volumes outpacing stock volumes, driven by increasing use in managed portfolios. Retail options trading grew significantly, accounting for over 30% of the options market.

U.S. households have the highest exposure to equities in over 80 years, benefiting their financial security. U.S. stock and options markets continue to grow, boosting wealth, financial independence, investment, employment, and the economy, showcasing how efficient markets can benefit everyone.



Read more at Nasdaq: Top Trading Trends from 2024