Global exchange-traded funds received an all-time high of $1.5 trillion in net inflows in 2024, while assets under management in global ETFs reached a record $13.8 trillion at the end of the year, up by $2.7 trillion from the end of 2023, according to a report issued by Morningstar on Jan. 15.
Ten years ago, global ETF AUM stood at $2.9 trillion
Equity and fixed-income funds captured 95% of the net inflows for 2024, or $1.4 trillion. Neither of these asset classes had a single month of outflows in 2024.
"While a record year for flows on an absolute basis is noteworthy, just as impressive is the 13.6% annual organic growth rate in 2024," Morningstar said in the report. "The larger the asset base, the harder it is to maintain a high rate, yet ETFs delivered their highest growth rate since 2021."
Net inflows into U.S.-domiciled ETFs spiked following November’s presidential election. Indeed, in the last two months of the year, such net inflows totaled $310 billion.
The U.S. dominated global ETF assets and inflows, capturing 75% of inflows in 2024 and holding 75% of assets.
In addition, for the first time, assets in actively managed ETFs surpassed the $1 trillion figure, reaching $1.075 trillion at the end of 2024, up from $669 billion at the end of 2023.
Flows into actively managed ETFs more than doubled year over year, to $339 billion in 2024 from $161 billion in 2023. Meanwhile, flows into passive ETFs grew organically at an 11% rate.
The three largest strategies, iShares S&P 500 index, SSGA S&P 500, and Vanguard S&P 500 Equity, pulled in $292 billion, or 19.5% of global flows, as their combined assets under management reached $2.1 trillion by the end of the year.