Global ETFs achieved new milestones in 2024, gaining a record $1.5 trillion in net flows and pushing total assets to $13.8 trillion, according to Morningstar data.
The increase represents a $2.7 trillion jump from 2023, highlighting the expansion of the ETF market.
One of the achievements was the rise of actively managed ETFs, which surpassed $1 trillion in assets for the first time, up from $669 billion in 2023. These funds grew nearly five times faster than their passive counterparts, attracting $339 billion in flows compared to $161 billion the previous year.
Fixed income ETF flows rebound, hit $62bn
The US continued to dominate the global ETF landscape, securing 75% of both flows and total assets. US domiciled ETFs saw a significant surge in interest following November’s presidential election, with November and December alone accounting for $310 billion of flows. Despite this dominance, non-US ETFs had a “record-breaking” year as well, amassing $377 billion inflows.
Equity and fixed-income ETFs were the primary drivers of growth, capturing 95% of total flows and bringing in $1.4 trillion. Equity funds set a new quarterly record in Q4 2024, collecting $419 billion and surpassing their previous high of $276 billion in Q1 2021. Fixed-income funds also performed robustly, further solidifying their place in investor portfolios. Quarterly flows reached an all-time high of $549 billion in Q4, marking an acceleration of the ETF market’s growth trajectory.
