The US ETF industry has reached a significant milestone, with assets under management hitting a record high of $9.49 trillion at the end of July, according to data from ETF research firm ETFGI.
This peak reflects the popularity and trust in ETFs as an investment vehicle, bolstered by consistent inflows throughout the year, shared the researchers.
In July alone, the industry attracted $139.42 billion in net inflows, continuing a 27-month streak of positive momentum. According to the researchers, this growth has been driven by various factors, including investor confidence in equity markets and a strong appetite for fixed income products.
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Equity ETFs were particularly favoured, gathering $66.75 billion in net inflows during July. This brings the year-to-date total to $269.92 billion, significantly outpacing last year’s figures. Fixed income ETFs also saw robust activity, with $28.75 billion in net inflows for the month, reflecting investors’ desire for stability amid market uncertainties.
Commodities ETFs, while traditionally more volatile, saw a modest improvement with net inflows of $2.75 billion in July. Although the year-to-date outflows remain red, the recent trend suggests a potential shift in investor sentiment towards these assets. Active ETFs also made a strong showing, pulling in $27.02 billion in July, indicating that investors are increasingly looking for dynamic, managed solutions within the ETF space.
The inflows can be largely attributed to the top 20 ETFs by net new assets, which together garnered nearly $77 billion during July. Leading the pack was the Vanguard S&P 500 ETF, which alone attracted $12.35 billion.
“The S&P 500 index increased by 1.22% in July and is up 16.70% YTD in 2024. The developed markets excluding the US index increased by 3.37% in July and is up 8.12% YTD in 2024. Ireland and Belgium saw the largest decreases amongst the developed markets in July. The Emerging markets index increased by 0.57% during July and is up 8.70% YTD in 2024. Greece and UAE saw the largest increases amongst emerging markets in July”, said Deborah Fuhr, managing partner, founder and owner, ETFGI.