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February 6, 2024 | Last updated January 16, 2025

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6 min read

Global ETF Flows: 2024 in Review

Assets reached a record USD 13.8 trillion, USD 2.7 trillion higher than at the end of 2023.

Key Takeaways

  • Global ETF flows captured an annual record of USD 1.5 trillion for the calendar year. Funds grew organically 13.6%, the highest rate since 2021. Funds residing outside the US also had record flows of USD 377 billion, easily exceeding the previous mark of USD 292 billion set in 2021. 

  • Equity and fixed-income funds captured 95% of flows, or USD 1.4 trillion. Neither of these bellwether asset classes had a single month of outflows in 2024. Both broad asset classes had record annual flows. Fixed income’s 18% growth rate was 50% higher than equity’s 12%, albeit beginning from an asset base only a quarter of equity’s size. 

  • Actively managed ETF assets surpassed USD 1 trillion for the first time and grew almost 5 times faster than passive ETFs. The category grew at a very robust 50% rate. Assets rose to USD 1,075 billion from USD 669 billion at the end of 2023, while flows increased to USD 339 billion from USD 161 billion. Active ETFs’ share of all ETF assets increased to 7.8% from 6.2%. Passive ETFs grew at a still-robust 11% clip. 

While a record year for flows on an absolute basis is noteworthy, just as impressive is the 13.6% annual organic growth rate in 2024. The larger the asset base, the harder it is to maintain a high rate, yet ETFs delivered their highest growth rate since 2021. 

The charts below illustrate which direction the money is flowing for global ETFs. For a more complete analysis, download the full quarterly report from Morningstar’s Syl Flood. 

This data was sourced from Morningstar Direct. Not a user? Get a free trial of Direct. 

ETFs Deliver Record Annual Flows as Assets Hit an All-Time High

Global flows were USD 1.5 trillion, easily surpassing 2021’s USD 1.2 trillion, as assets reached USD 13.8 trillion. Ten years ago, assets stood at USD 2.9 trillion. 

Global ETF assets and flows continued their upward trajectory in Q4 2024, reaching new all-time highs.

Cheap Equity and Fixed Income Continue to Dominate Flows

Much of the current discourse in the fund industry is around innovations in alternatives and private-to-public offerings, but “pure beta” equity and fixed-income strategies still overwhelmingly prevail in flows terms. These two core categories captured USD 1.4 trillion, or 95%, of flows in 2024. 

Alternatives (in maroon), the home of US spot bitcoin funds, have made a dent in the universe, but in terms of dollars at work, it’s just that: a dent. Alts, which includes digital assets funds, captured 3% of flows and hold just 1% of assets. 

Fixed-income strategies experienced a resurgence in Q4 2024, with both inflows and organic growth accelerating.

Actively Managed Funds Grew 50% Organically in 2024 as Flows Doubled

Flows into actively managed ETFs more than doubled year on year, to USD 339 billion from USD 161 billion. While passives grew organically at a very healthy 11%, actives blew the doors off with a 50% rate. Flows were buoyed by equity and fixed-income strategies, which captured 89% of active flows. 

Active and passive ETFs both grew in 2024, with active ETFs showing strong organic growth.

More on Global ETF Flows from Morningstar

For more comprehensive analysis and commentary on global fund flows, download this quarter’s full report. Additional topics include: 

  • The largest five fund groups that thrived in 2024. 

  • The dominance of a few firms in the actively managed ETF market. 

  • Benchmark index providers' stronghold on ETFs, with the top seven capturing 70% market share and S&P leading at 28%, driven by $475 billion in fund flows for 2024. 

Can’t get enough fund flows data? Check out Morningstar’s Ultimate Guide to Fund Flows. 

Did you know you can pull all this data yourself? Start a free trial of Morningstar Direct now. 

Download the Free Quarterly Fund Flows Report

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