ETFs are set to hit record inflows, but this wild card could change it

From CNBC: 2024-09-07 11:00:01

In 2024, exchange-traded fund inflows hit a record high, reaching historic levels in July. Experts anticipate the impact of $6 trillion in money market funds on ETF inflows by year-end. Assets in money market funds have surged to $6.24 trillion, waiting for a Federal Reserve rate cut. As rates fall, capital is expected to move into stocks, higher-yielding fixed income, and ETFs.

State Street Global Advisors’ Bartolini predicts a shift into gold ETFs, which have seen strong inflows in recent months. The industry is expected to thrive, especially for megacap ETFs like large, established funds. Geraci foresees ETF inflows nearing 2021 record levels of $909 billion if market conditions remain stable.

Read more: ETFs are set to hit record inflows, but this wild card could change it