Global ETF Flows: Q3 2024 Key Takeaways

While a record year for ETF flows on an absolute basis would be noteworthy, a better question might be: how does 2024’s year-to-date growth rate relate to previous years?  

The growth rate in 2024 is significantly higher than the same periods in 2022 and 2023, but still lower than 2021’s rate. 

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. 

Assets in ETFs at the end of September 2024 were USD 13.4 trillion, USD 3.7 trillion higher than they were in September 2023. Flows contributed USD 1.3 trillion of that amount, while market appreciation made up the rest. Flows hit a quarterly record of USD 390 billion. Remarkably, there has never been a negative quarter for flows since the beginning of Morningstar’s flows database in 2008. Monthly outflows have occurred only 10 times over that 201-month stretch. 

Fixed-income funds had record quarterly flows of $127 billion, surpassing the previous record of $112 billion in the second quarter of 2020 at the height of the COVID-19 market crash. The category has enjoyed inflows in 115 of the past 120 months, including a current streak of 32 months. Year-to-date flows stand at USD 279 billion, or a 13.5% organic growth rate. 

However, fixed-income funds’ share of overall ETF assets held steady at 18% as the appreciation of equity assets continued in 2024, thanks to the 18.3% year-to-date return of the Morningstar Global Markets Index. 

Funds that do not track a benchmark index grew 10% on an organic basis (line chart, right-hand axis) in the third quarter, slightly outpacing the second quarter’s rate of 9.4%. For the year to date, actively managed ETFs have grown at a blistering 33%, while passives have grown 7%. Active assets have swelled from USD 683 billion at the end of 2023 to USD 973 billion on Sept. 30. 

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

• The US leads in global ETF assets and flow, though ex-US funds grew faster. 

• Equity and fixed-income ETFs captured 96% of flows year-to-date, with alternatives accounting for just 3%. 

• 80% of worldwide actively managed fixed-income ETF assets (USD 319 billion) are domiciled in the US, with Canada and South Korea dominating short-term strategies elsewhere. 

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

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