US ETF Inflows Soar to $505 Billion, Surpass 2020 Record

As robust financial markets continue to attract an onslaught of investors, inflows into US-based ETFs have surpassed last year’s record, as total assets soared to more than $6 trillion since the beginning of the year.

According to the Financial Times, which cited data from research firm CFRA, net inflows into US ETFs have topped $505 billion since the beginning of 2021, significantly outpacing last year’s entire total by $1 billion. As a result of record interest in US markets, total US ETF assets under management have rise to $6.6 trillion.

A strong rally in share markets amid the pandemic have forced US indices to repeatedly reach new record-highs, which in turn has prompted investors to plow into ETFs that track major international equities and Wall Street. Since the beginning of the year, $384 billion in new money has made its way into the ETFs, well above the $249 billion noted during the same period a year ago.

The broader industry has been benefitting from increased interest among financial advisors looking to diversify their clients’ portfolios. Stronger alignments with ESG standards have been one of the main driving factors behind this year’s new inflows. Moreover, ETFs are also relatively cheaper, and come with less complex tax structures compared to mutual funds.

Information for this briefing was found via the Financial Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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