Driven by a rising market and continuous capital inflows, assets in U.S. exchange-traded funds (ETFs) surpassed $10 trillion for the first time, marking a further solidification of this investment tool's status on Wall Street. According to statistics, investors have poured $691 billion into ETFs so far this year, further confirming that ETFs are reshaping the investment landscape on Wall Street.
Due to their higher liquidity and tax advantages, ETFs are gradually replacing traditional mutual funds, attracting more investors. Meanwhile, the popularity of low-cost products has reduced the income of fund management companies, prompting ETF issuers to offer more complex strategy products.
Amrita Nandakumar, President of Vident Asset Management, stated that the growth of ETFs is an important manifestation of investment democratization. From $1 trillion fourteen years ago to $10 trillion today, ETFs have become a channel for all investors to access diverse asset classes.
Data shows that there are currently nearly 3,800 ETF funds on the market, with new funds and capital inflows expected to reach record levels this year. Vanguard Group Inc. absorbed 32% of the capital inflows, marking the third-best year in the company's history.
Among new listed products, 80% are actively managed, use derivatives, or leverage, with issuers gaining market share through innovation. Jillian DelSignore of Nasdaq Global Index Group stated that ETFs are becoming the preferred tool for investors, and new investment opportunities will continue to emerge in the future.
