US exchange-traded funds crossed a major milestone in 2024, with assets rising 28% to $10.36 trillion, driven by market appreciation and $1.12 trillion in net inflows , according to a new report from CFRA.
The record year signals a shift in the way investors access markets, with growth-oriented themes and active management strategies reshaping the traditionally index-dominated ETF landscape, according to Aniket Ullal, head of ETF research at CFRA. .
He Hashdex Bitcoin Futures ETF (DEFI) led all categories with a return of 109.4% in 2024, according to CFRA data.
Technology-focused funds also performed well, with the Roundhill Magnificent Seven ETF (MAGS) obtaining 62.7% and the Defiance Quantum ETF (QTUM) gaining 50.4%, the report showed.
Active ETF strategies captured 24.6% of total inflows in 2024, up from 14.6% in 2022, according to CFRA analysis.
The trend came largely at the expense of smart beta products, whose entries fell from 18.7% to 7.7% during the same period, according to the research.
Vanguard and BlackRock maintained their dominance in the industry, capturing a combined 53% of all ETF inflows in 2024, according to the CFRA report.
He Vanguard S&P 500 ETF (VOO) attracted the most new assets with $115.1 billion in inflows, followed by the iShares Core S&P 500 ETF (IVV) with 86.5 billion dollars, the report revealed. He iShares Bitcoin Trust (IBIT) It captured third place with $37.5 billion in receipts during its first year of operations.
Meanwhile, JPMorgan showed growing influence in the active space, capturing 3.9% of total flows despite owning just 1.6% of assets as of early 2024, the research revealed.
Active ETF issuers continued to gain market share throughout 2024, the report highlighted.
Dimensional Fund Advisors and Capital Group exemplified this trend, as both firms captured more flows than their market share would suggest, according to the report.
He Global X MSCI Argentina ETF (ARGT) gained 61.6% in 2024, driven by investor optimism around Argentine President Javier Milei’s reform agenda, according to the research. The gaming sector also showed strength, with VanEck Gaming and Esports ETF (ESPO) completing the top five artists.
Traditional index ETFs still maintained their appeal, with annual inflows growing 89% to $759.3 billion in 2024 from $402.4 billion in 2022, according to the data.
Looking ahead, CFRA projects ETF inflows by 2025 between $500 billion and $1 trillion, with upside potential if the Securities and Exchange Commission approves ETFs as a mutual fund share class.