More than $1.1 trillion flowed into exchange-traded funds (ETFs) in 2024, topping the previous $900 billion record set in 2021. As one of the few global economic bright spots, the U.S. economy’s growth helped propel the S&P 500 by 25%, marking the first back-to-back 20% or greater gains since the late 1990s.
Let’s look at where all that money went, what funds notched the best performance, and what trends could persist into 2025.
Tech & Crypto Are Top Performers
It shouldn’t come as a surprise that tech and cryptocurrency ETFs were among the top performers last year. While the strong performance of Bitcoin ETFs was expected as the cryptocurrency surpassed $100,000, options-based income strategy overlays like YieldMax NVDA Option Income Strategy ETF (NVDY) outperformed their equity-only peers.
Top Performing ETFs in 2024
The ETFs are sorted by their one-year total return, which ranges from 95% to 128%. They have AUM between $2.6M and $2.76B, with expenses running between 0.93% and 1.01%. They are currently yielding between 0% and 60.9%.
| Name | Ticker | Type | Actively Managed? | AUM | 1 Year Total Ret (%) | Yield | Expense |
|---|---|---|---|---|---|---|---|
| YieldMax NVDA Option Income Strategy ETF | NVDY | ETF | Yes | $1.36B | 128.4% | 60.9% | 1.01% |
| ProShares Bitcoin Strategy ETF | BITO | ETF | Yes | $2.76B | 110.9% | 56.3% | 0.95% |
| ARK 21Shares Active On-Chain Bitcoin Strategy ETF | ARKC | ETF | Yes | $2.6M | 99.2% | 32.1% | 0.93% |
| Hashdex Bitcoin Futures ETF | DEFI | ETF | No | $14.4M | 95.8% | 0% | 0.94% |
Low-Cost ETFs Dominate Net Inflows
Low-cost ETFs dominated net inflows as investors continued their transition away from higher-cost mutual funds to low-cost ETFs. But the sheer scale of the inflows was a surprise: the Vanguard S&P 500 ETF (VOO) attracted more than $117 billion in net inflows, which is more than the fund had in total assets just a few years ago!
nbsp;
Source: ETF.com
Highest Overall ETF Net Inflows in 2024
The ETFs are sorted by their one-year total return, which ranges from 24% to 28%. They have AUM between $317B and $1.84T, with expenses running between 0.03% and 0.20%. They are currently yielding between 0.6% and 1.5%.
| Name | Ticker | Type | Actively Managed? | AUM | 1 Year Total Ret (%) | Yield | Expense |
|---|---|---|---|---|---|---|---|
| Invesco QQQ Trust | QQQ | ETF | No | $317B | 27.7% | 0.6% | 0.20% |
| iShares Core S&P 500 ETF | IVV | ETF | No | $577B | 26.4% | 1.5% | 0.03% |
| Vanguard S&P 500 ETF | VOO | ETF | No | $1.37T | 25.8% | 1.3% | 0.03% |
| Vanguard Total Stock Market ETF | VTI | ETF | No | $1.84T | 24.6% | 1.3% | 0.03% |
Investors Turn Toward CLOs for Yield
Falling interest rates sent bond yields lower over the past year, forcing many investors to look elsewhere for income. As a result, collateralized loan obligations, or CLOs, became one of the hottest subsets of the fixed income market. The Janus Henderson AAA CLO ETF (JAAA) saw some $11 billion in net inflows, making it one of the most popular ETFs in 2024.
Highest Fixed Income Net ETF Inflows in 2024
The ETFs are sorted by their one-year total return, which ranges from 1.7% to 7.4%. They have AUM between $15B and $314B, with expenses running between 0.03% and 0.22%. They are currently yielding between 3.9% and 6%.
| Name | Ticker | Type | Actively Managed? | AUM | 1 Year Total Ret (%) | Yield | Expense |
|---|---|---|---|---|---|---|---|
| Janus Henderson AAA CLO ETF | JAAA | ETF | Yes | $15.6B | 7.4% | 6% | 0.22% |
| iShares 0-3 Month Treasury Bond ETF | SGOV | ETF | No | $28B | 5.3% | 4.4% | 0.09% |
| Vanguard Total Bond Market Index Fund | BND | ETF | No | $314B | 1.8% | 3.9% | 0.03% |
| iShares Core U.S. Aggregate Bond ETF | AGG | ETF | No | $121B | 1.7% | 3.9% | 0.03% |
Active ETFs Continue to Grow in Popularity
Active ETFs have experienced significant growth since 2019, when the SEC’s ‘ETF Rule’ went into effect, streamlining the approval process and permitting custom security baskets. Last year alone, more than 300 new active ETFs hit the market. Meanwhile, the iShares US Equity Factor Rotation ETF (DYNF) alone drew in $11.7 billion in net inflows!
Highest Active ETF Net Inflows in 2024
The ETFs are sorted by their one-year total return, which ranges from 2.7% to 33%. They have AUM between $13B and $20B, with expenses running between 0.22% and 0.36%. They are currently yielding between 1% and 9.28%.
| Name | Ticker | Type | Actively Managed? | AUM | 1 Year Total Ret (%) | Yield | Expense |
|---|---|---|---|---|---|---|---|
| iShares U.S. Equity Factor Rotation Active ETF | DYNF | ETF | Yes | $13.5B | 33.1% | 1% | 0.27% |
| JPMorgan Nasdaq Equity Premium Income ETF | JEPQ | ETF | Yes | $19.6B | 26.5% | 9.28% | 0.35% |
| Janus Henderson AAA CLO ETF | JAAA | ETF | Yes | $15.6B | 7.4% | 6% | 0.22% |
| Fidelity Total Bond ETF | FBND | ETF | Yes | $16.6B | 2.7% | 6.4% | 0.36% |
What’s Next in 2025?
Crypto ETFs are likely to continue to see growth following Trump’s victory. In addition to lighter regulations, the industry could benefit from the creation of a National Bitcoin Reserve proposed by Trump during his campaign. Meanwhile, chipmakers like NVIDIA could continue to benefit from these favorable tailwinds.
More broadly, analysts are divided on what to expect from the economy. While strong economic growth underpins today’s lofty equity valuations, the threat of trade wars and wider geopolitical conflicts could reverse the economy’s direction. And these same uncertainties make it unclear whether inflation will continue to trend lower.
The Bottom Line
The ETF market set new records in 2024 thanks to a robust 25% gain in the S&P 500 index. Aside from the transition away from mutual funds, investors were drawn to tech and crypto funds for their outperformance and CLOs for their income potential. These trends appear poised to continue into 2025, although the economic outlook remains uncertain.
