The Strategist

WSJ: Inflows into ETFs surpass $1T for the first time



12/13/2021 - 07:14



Experts have noted record inflows into exchange-traded funds around the world, with more than $1 trillion invested in them in 2021. Most of that money went into US index funds managed by Vanguard, BlackRock and State Street.



Marco Verch
Marco Verch
In 2021, inflows into exchange-traded funds (ETFs) around the world reached a record high. This is reported by The Wall Street Journal, citing data from analyst firm Morningstar.

According to them, by the end of November, investments in such funds exceeded $1 trillion for the first time. For comparison, for the entire last year, global investments in ETFs amounted to $735.7 billion. Thanks to the inflow of money and general growth of the stock market, assets of exchange-traded funds this year reached almost $9.5 trillion, which more than doubles the value of late 2018, WSJ writes.

According to the publication, most of the funds have gone into US index funds, which are managed by investment firms Vanguard, BlackRock and State Street. The three together control more than 75% of all US ETF assets.

Amid the boom in exchange-traded funds, investment firms are creating new ETFs with narrow themes, trying to find a niche not yet dominated by industry giants, the WSJ notes. For example, VanEck launched a food-focused ETF in December, while Tuttle Capital Management unveiled a FOMO ETF in March that focuses on stocks popular with private investors.

source: wsj.com