Exchange-traded funds—where is the money flowing?

Article Excerpt

By the end of May 2024, ETF assets listed in the U.S. were valued at $9.0 trillion—that’s after the addition of $356 billion in new assets in the first five months of 2024. Most ETF money in the U.S. market is invested in stocks (77%), followed by fixed-income funds (18%). Within the stocks component, the money mainly goes into U.S. equities, with a smaller portion allocated to international and emerging markets. A further look at the equities component indicates that most of the money so far in 2024 was allocated to technology ETFs, followed by industrials, materials, and real estate. Utilities ETFs experienced high inflows in May compared to outflows in the first part of the year. Cryptocurrency-asset ETFs have gathered $60 billion since the first U.S. listings were approved earlier in the year. The Canadian ETF market is considerably smaller, with an asset base equal to just 5% of the U.S. market. New money invested this year into Canadian ETFs was about $24 billion…