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ETF inflows reached a record high in 2024 with $1 trillion inflows. CFRA head of ETF data and analytics Aniket Ullal joins Wealth host Brad Smith to discuss ETFs' groundbreaking year and look ahead at what's next for ETFs in 2025.
Ullal attributes the record-high ETF inflows to "a few things," including "the growth in active ETFs" with support from non-indexed ETFs, traditional indexed ETFs, as well as the launch of crypto ETFs like spot bitcoin (BTC-USD).
Looking ahead to 2025, Ullal says, "We think $1 trillion is a hard act to follow ... this year was the perfect storm in terms of having very strong equity market performance." He adds, "Our projection for next year is that we expect ETF flows to be somewhere between about $500 billion to $1 trillion. That's a wide range, but probably not matching what we saw this year. That's not a bad number."
He highlights ETFs exposed to the financial sector are likely to benefit from regulation under Trump, naming the Invesco KBW Bank ETF (KBWB), S&P Regional Banking ETF (KRE), and ARK Fintech Innovation ETF (ARKF) as bullish picks.
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This post was written by Naomi Buchanan.