ETF industry growth streak continues, shatters net inflow records

The ETF industry has stretched its growth streak to 71 months of consecutive net inflows, and amassed a record US$620.5 billion year-to-date, according to consultancy firm ETFGI.

These record-breaking net inflows year-to-date steamrolled the previous record of US$464.2 billion set last year, and before that, US$464.2 billion in 2021.

This was achieved despite turbulence in the VIX Index, the US market's "fear gauge," which spiked earlier this year following President Donald Trump's announcement of sweeping tariffs on all US imports. The initial shock triggered a global market selloff, erasing US$5 trillion in S&P 500 market value within 48 hours. That sent the VIX Index to levels unseen since the pandemic panic, and prior to that, the Global Financial Crisis.

In April, the most recent reporting date, net inflows totalled US$157 billion.

A substantial portion (US$88.3 billion) came from the top 20 ETFs by net new assets, according to ETFGI.

The Vanguard S&P 500 alone pulled in US$20.9 billion in net new assets for the month, surpassing the combined total of the next three ETFs by net new assets: the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (US$6 billion), Huatai-Pinebridge CSI 300 ETF (US$5.8 billion), and iShares 0-3 month Treasury Bond ETF (US$5.3 billion).

The total assets invested in ETFs globally at the end of April, however, was slightly below the record high of US$15.5 trillion reached in February at US$15.44 trillion.

Meanwhile, the top exchange-traded products (ETPs) by net new assets in April were the Amundi Physical Gold ETC (US$391.2 million) and the Japan Physical Gold ETF (US$355 million). Notably, gold prices rose 6% during the month as the US dollar plunged and uncertainty escalated, according to the World Gold Council.

The next highest net new asset gains came from the MicroSectors FANG+ 3X Leveraged ETN (US$193.2 million), Grayscale Bitcoin Mini Trust ETF (US$152.3 million), and iShares Bitcoin ETFP (US$122 million).

Overall, the global ETF industry ended the month slightly over 14,000 products and nearly 28,000 listings, spanning 858 providers across 81 exchanges and 63 countries.