The global Exchange Traded Fund (ETF) industry achieved a significant milestone in 2024, with a record-breaking 1,988 new products introduced to the market. This represents a net increase of 1,366 ETFs after accounting for 622 closures throughout the year. The previous record of 1,841 new launches, set in 2021, has now been surpassed, highlighting the accelerating pace of innovation and diversification within the ETF marketplace.
Key Highlights of 2024 ETF Launches
The distribution of new ETF launches in 2024 reflects robust growth across major geographic regions. The United States led with 746 new products, followed by the Asia Pacific region (excluding Japan) with 606, and Europe with 323. In total, 398 providers contributed to these launches, which were listed on 43 exchanges around the world.
Despite the high number of new entrants, the industry also witnessed 622 product closures from 177 providers across 29 exchanges. The United States reported the highest number of closures at 196, while both Asia Pacific (excluding Japan) and Europe recorded 156 closures each.
New products were diversified across various strategies and asset classes. These included 954 Active ETFs, 650 Index Equity ETFs, and 191 Index Fixed Income ETFs, illustrating a broad range of investment opportunities for investors.
Leading Providers and Market Trends
iShares emerged as the most prolific issuer, launching 96 new ETFs in 2024. Global X ETFs followed with 69 new products, and First Trust introduced 57 new funds. The growth trajectory from 2020 to 2024 has been remarkable, with the number of new launches increasing from 1,131 to 1,988 over this five-year period.
Regional records were also set in 2024. The United States and Canada achieved all-time highs with 746 and 189 new launches, respectively. Other regions, such as Latin America, saw more modest activity with only 26 new products.
Record Assets and Strong Inflows
The global ETF industry held US$14.85 trillion in assets under management at the end of 2024. December alone saw net inflows of US$207.73 billion, contributing to a record annual net inflow of US$1.88 trillion for the year. Overall, the industry now comprises 13,198 products with 26,244 listings, managed by 814 providers across 81 exchanges in 63 countries.
The Rise of Cryptocurrency ETFs
A standout trend in 2024 was the dominant performance of cryptocurrency-focused ETFs. The iShares Bitcoin Trust (IBIT US) led the pack with US$51.72 billion in assets. It was followed by the Grayscale Bitcoin Trust (GBTC US) with US$19.18 billion and the Fidelity Wise Origin Bitcoin Fund (FBTC US) with US$18.87 billion.
The approval of Bitcoin ETFs in the United States in January 2024, followed by Ethereum ETFs in July, fueled significant investor interest. The Grayscale Ethereum Trust (ETHE US) also made it to the top 25 list, holding US$4.74 billion in assets. Beyond digital assets, the top new launches included ETFs focusing on high dividends, equities, active management, and climate-related themes, showcasing the varied strategies available to investors. 👉 Explore more ETF investment strategies
Frequently Asked Questions
What is an ETF?
An ETF, or Exchange Traded Fund, is a type of investment fund that is traded on stock exchanges, much like individual stocks. ETFs typically hold assets such as stocks, bonds, or commodities and are designed to track the performance of a specific index or sector.
Why did the ETF industry see so many new launches in 2024?
The surge in new ETF launches can be attributed to growing investor demand for diversified, accessible, and often niche investment strategies. Innovations in areas like active management, fixed income, and cryptocurrencies have driven providers to expand their offerings to meet this demand.
What does a high number of closures indicate?
Product closures are a normal part of the ETF lifecycle. They often occur when funds fail to attract sufficient assets or trading volume to be economically viable for the provider. This reflects healthy market competition and consolidation.
How do cryptocurrency ETFs fit into a portfolio?
Cryptocurrency ETFs offer investors a regulated and familiar way to gain exposure to digital assets like Bitcoin and Ethereum without having to manage the underlying cryptocurrencies directly. They can serve as a speculative investment or a diversification tool.
Which regions are leading in ETF innovation?
The United States remains the largest and most innovative ETF market. However, the Asia Pacific region and Europe are also experiencing rapid growth, with a increasing number of new products being launched to serve local and global investors.
Are ETFs a good choice for individual investors?
ETFs can be an excellent choice due to their liquidity, diversification, and typically lower fees compared to traditional mutual funds. They allow investors to easily gain exposure to a wide array of asset classes and strategies.