While many spent August on vacation, the world of exchange-traded funds (ETFs) saw a surge in activity.

According to a report by Vidana Hajric for Bloomberg, investors funneled $75 billion into U.S. ETFs last month, a figure five times higher than the same period in 2023. Bloomberg noted that this influx could be pivotal in pushing ETF inflows toward another historic annual cash haul. With $122 billion added in July, the second-largest monthly intake ever, Bloomberg highlighted the ongoing volatility driven by factors like the Federal Reserve’s expected easing cycle and the upcoming U.S. presidential election.

Per the Bloomberg report, U.S. ETFs have already gathered $609 billion in 2024, surpassing the totals of the past two years. The data from Bloomberg shows that inflows could potentially reach or even exceed the 2021 record of $911 billion. Bloomberg emphasized the significance of this momentum, particularly in a market nearing $10 trillion, where ETFs now represent nearly a third of total fund assets, doubling their share from 2015.

Bloomberg also mentioned that actively managed ETFs have grown by more than 30% this year, reaching $783 billion, while passive ETFs have increased by 15% to $8.6 trillion. Both fixed-income and equity ETFs have experienced robust demand, with Bloomberg reporting inflows of $187 billion and $367 billion, respectively, in 2024. Bloomberg cited Todd Sohn, an ETF strategist at Strategas, who pointed out that bond ETFs, which have drawn $100 billion in the last three months, have benefited from a surge in new offerings, including the BlackRock Flexible Income ETF (BINC) and the Capital Group Core Bond ETF (CGCB).

In addition to traditional bonds, Bloomberg highlighted the strong performance of spot Bitcoin ETFs, which have garnered over $17 billion in net inflows. Bloomberg also reported on the rise of more complex funds, such as covered-call and downside-protection ETFs, which have contributed to the overall growth. Leveraged and inverse funds based on single companies have also seen notable success, accumulating more than $9 billion in assets.

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