For the first time in history, the total holdings of U.S. exchange-traded funds (ETFs) have surpassed $10 trillion. This milestone highlights the explosive growth of ETFs, which have more than doubled in size over the past five years. In just the first three quarters of 2024, net inflows into these funds reached an astonishing $691 billion, driven largely by a historic market rally, according to Bloomberg.
U.S. ETFs now make up 71% of the $14 trillion global ETF market, cementing their dominance. With 800 ETFs currently listed in the U.S., the market shows no signs of slowing down. Investors are flocking to these funds due to their flexibility, cost-effectiveness, and ability to provide diversification compared to traditional mutual funds.
As ETFs continue to gain traction, they are reshaping how investors allocate their portfolios. The surge in investor interest underscores the growing preference for these funds in an evolving financial landscape.
Sources:
- Morningstar – Another Month, Another Milestone: 10 Reasons the ETF Market Reached $10 Trillion in Q3
- ETF Trends – U.S. ETF Assets Reach $10 Trillion Milestone
- Investment News – US ETFs surge past $10T in September
- ETF Is Good – How US ETFs Hit 10 Trillion Dollars