US exchange-traded funds (ETFs) have surpassed $10 trillion in assets for the first time, according to Cerulli Associates. The latest data shows that investors poured $156 billion into ETFs in November, exceeding previous monthly records.
The “Trump bump” helped drive this surge, with research from Morningstar indicating a record $115 billion in flows in November. This trend is expected to continue as 2024 comes to a close.
The S&P 500 index has been a major winner for investors, rising nearly 24% as of Monday. The top-performing ETFs include those tracking the S&P 500 index, with four out of the top 10 winners having high inflows in 2024.
S&P 500 expert Malcolm Ethridge expects these trends to continue, citing lower fees and increased liquidity as reasons why investors favor passive S&P 500 ETFs. However, he also notes that the pace may slow down in 2025.
Alternative ETFs have seen record growth, with $400 billion in net assets crossing for the first time. Digital asset ETFs dominate the market, accounting for 80% of total assets. Financial advisors are increasing their allocation to alternatives, with a 3.6% allocation expected to rise.
Crypto ETFs have also seen significant growth, with bitcoin ETFs becoming increasingly popular. Despite some skepticism from financial advisors, they acknowledge that crypto is becoming an inevitable conversation topic with clients.
Source: https://www.cnbc.com/2024/12/30/as-etf-assets-top-10-trillion-for-first-time-here-are-trends-to-watch.html