Record-breaking ETF assets reached $17.85 trillion by the end of August
In August, Exchange-Traded Funds (ETFs) continued their impressive run, attracting a staggering $183.04 billion, marking the 75th consecutive month of net inflows. This brings the year-to-date net inflows for ETFs to a record high of $1.27 trillion.
The global ETF industry, now consisting of 14,662 products, saw a significant increase in assets under management. By the end of August, a record $17.85 trillion was invested in ETFs worldwide. The world's largest ETF provider, iShares, holds a market share of 28.3%, with $5.06 trillion in assets. Vanguard, the second-largest provider, has a 21.7% market share and manages $3.9 trillion.
Commodities ETFs experienced a reversal from net outflows reported by this stage in 2024, with $7.68 billion in net inflows during August. Fixed income ETFs also saw a boost, reporting $48.43 billion in inflows, ahead of the money gathered by August 2024. This represents a 20.2% increase year-to-date compared to $14.85 trillion at the end of 2024. Equity ETFs gathered $75.25 billion in August, slightly below the same point in 2024.
Investors showed a preference for the top 20 ETFs by net new assets, which collectively gathered $58.27 billion during August. The Vanguard S&P 500 ETF attracted the largest individual net inflow of $9.17 billion. The S&P 500 index rose 2.03% in August, bringing its year-to-date gain to 10.79%. The developed markets excluding the US advanced 4.29%, while the emerging markets index posted a 2.48% gain, with a year-to-date performance of +16.04%.
However, not all markets fared equally well. Among developed markets, Denmark (-6.37%) and Japan (-6.24%) experienced the largest declines in August. US indices such as the S&P 500 and Nasdaq 100 saw significant declines in some months, with the Nasdaq falling by -7.69% in a recent August. Emerging markets, including some developing countries, experienced losses of about -0.8% measured by the MSCI Emerging Markets Index.
Active ETFs drew $53.39 billion in August, which is higher than the number recorded a year earlier. The countries that experienced the largest losses in the global ETF market from August 2021 to August 2024 are not explicitly listed in the search results.
With ETFs continuing to grow in popularity and assets under management, investors are increasingly turning to these investment vehicles for diversification and ease of trading.
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