Q3 ETF flows surged by $292 billion, bringing year-to-date flows to $698 billion. That’s up 46% compared to this time last year, and it already surpassed the roughly $600 billion in total flows for all of 2023. Across 3,700 products, ETFs have now eclipsed $10 trillion in assets under management for the first time ever.
ETF flow record
Another quarter, another big 3 months for ETF flows. ETFs were responsible for 28% of total US exchange volume during the third quarter, with $10 trillion in traded volume.
It will take another big quarter of flows, but 2021’s all-time record haul of just under $1 trillion in annual flows is reasonably within reach. If ETF flows during the last quarter of 2024 match that of this past quarter, that could set a new yearly record.
The biggest source of momentum this year has been behind US equity (e.g., stock) ETFs. During all of 2023, US equity ETFs accumulated roughly $300 billion in flows. While US stocks continued to broadly make fresh highs in the second half of 2024, equity ETFs saw $177 billion in flows during Q3 alone. Broad-based index funds have been the primary source of strength in terms of flows.
While equity ETF flows have now outpaced fixed income (e.g., bond) flows for 6 straight quarters, the latter have also been strong—especially compared to a relatively weak 2023. Fixed income ETFs saw $100 billion in flows during Q3, led by $40 billion and $23 billion for aggregate bond and government/Treasury categories, respectively. That represents one of the best quarters for fixed income flows in years.
Actively managed, crypto, structured-product ETFs
Several trends have gained traction in 2024, including the ongoing growth of actively managed ETFs as well as the emergence of cryptocurrency ETFs.
Actively managed ETFs accounted for $200 billion (29%) of ETF industry flows year to date, while only representing 8% ($797 billion) of ETF assets. Of the 200 ETFs that were launched in Q3, 156 were actively managed. A record 513 ETFs have launched thus far this year, of which 388 were actively managed.
In crypto, 9 spot bitcoin ETPs launched this year thus far, gathering $5.5 billion in flows during Q3. That brings the year-to-date cume to $39 billion. Additionally, 8 spot ethereum ETPs launched in Q3, gathering $2.4 billion (not including an ethereum trust that converted during the quarter).
In the defined outcome/structured products space, those types of ETFs have seen $3.5 billion in flows during each of the first 3 quarters of 2024. That brings their total assets under management to $54 billion.
Looking for ETFs?
ETF flows can be a useful tool to help identify market trends, and to see where investors are broadly putting their money. If you are interested in investing in ETFs, Fidelity's ETF Screener can quickly sort through a lot of data based on the filtering selections you make.
You can search for ETFs using a variety of characteristics, like the fund's objectives, fundamentals, technicals, performance, volatility, trading characteristics, tax considerations, and analyst ratings.