Investors poured over $1 trillion into U.S.-based exchange-traded funds in 2024, setting a new record and surpassing the previous high from three years ago. The surge coincided with the S&P 500's approximate 25% gain, reflecting a rebound in confidence and a shift from mutual funds to ETFs for tax advantages and trading flexibility. Invesco’s QQQ, which follows the leading S&P 500 funds, attracted significantly more inflows this year than the previous year. Investors showed strong optimism after Donald Trump's re-election, driving record ETF inflows amid hopes for lower taxes and reduced regulations to boost the stock market.
