There is so much that I am thankful for in the ETF industry. I’m going to list some categories, but I’m sure my brevity will cause me to regret the absence of others.
Record Year for ETF Flows
The U.S. ETF industry has set many records in 2024, with more than a month to go. With over $920 billion of net inflows industrywide, the prior record of 2021 was eclipsed earlier in November. Fixed income ETFs set a new standard weeks ago with currently more than $275 billion.
Meanwhile, the Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) already have higher net inflows than any other fund did previously. The $100 billion and $56 billion pulled into VOO and IVV, respectively, are larger than the asset bases of nearly all other ETFs.
I am thankful that so many investors are starting their ETF experience with a strong, low-cost core product. Presumably, when investors have a good experience, they will expand to other investment styles and asset categories via the ETF wrapper.
Recent Entrants Further Committed to the ETF Business
My research career started as a mutual fund analyst more than two decades ago. While I live and breathe ETFs, it excites me when firms I used to cover bring their best into a new market. For example, Calamos entered the ETF market in 2023. However, this year Calamos further committed to ETFs with a new suite of structured protection alternative ETFs.
Another example is Neuberger Berman, which initially entered the ETF market a few years ago. Neuberger Berman expanded their ETF lineup notably in 2024. In addition to mutual fund to ETF conversions, the firm added net new products and offers a suite of equity, fixed income, and commodity ETFs. I am grateful to see old asset management friends further embrace the ETF community.
Top 4 Providers to Continually Expand
iShares, Vanguard, State Street Global Advisors, and Invesco have all seen strong demand for some of their oldest products in 2024. However, as an ETF nerd, I love when we have product development waves. The top four ETF firms have made me very happy this year.
iShares expanded its actively managed equity and laddered bond ETF lineup, while Vanguard added to its active fixed income suite. State Street Global Advisors and Invesco also bolstered their broad offerings to include target maturity and options-based ETFs. This is just a sampling of the areas in focus for these firms.
I appreciate that the industry heavyweights further innovate. We are approaching 4,000 ETF “children” that I need to remember the names of. That makes me proud.
Bringing the Community Together
I am also fortunate to work for a company that is focused on the advisor community. We have hosted more than 150 virtual events thus far in 2024. These webcasts and symposia are hosted by myself and my fellow VettaFi Voices. Several times a week, we have asset manager and financial services companies share expertise with hundreds of advisors at a time. These advisors receive continuing education credit and share their views back to us about a range of investment topics.
As great as it is to be together virtually on a daily basis, being together in person is even better.
VettaFi will be hosting the community’s best ETF and advisor conference taking place in 2025. Exchange will take place in Las Vegas in late March and will be a must-attend event. Five months out, we have approximately 400 registered attendees and 60 partners from all across the ETF ecosystem.
My heart is full to those that have already made the commitment to join us. I know the numbers will climb even higher. You can join us and register here now.
I also appreciate that I work with an amazing team at VettaFi similarly committed to supporting the ETF and advisor community. Heading into the holidays, there is much to be thankful for. As you sit down to your meal with family and friends, I hope you find a lot to appreciate.
For more news, information, and analysis, visit VettaFi | ETF Trends.