ETFs are on pace to break record annual inflows, but this wild card could change it all

Published On Sep 7, 2024, 11:00 AM

ETFs are experiencing record inflows, surpassing previous monthly records in 2024. The potential risk to this trend comes from an unprecedented boom in money market funds, currently over $6 trillion. Experts suggest that if yields on money market funds drop, investors may begin reallocating funds into equities and ETFs, particularly those focusing on gold and large-cap stocks. If this shift occurs without significant market pullbacks, ETF inflows could break the 2021 record of $909 billion.

Stock Forecasts

The market is seeing record inflows into ETFs which could continue if money from money market funds is reallocated into equities after a potential drop in yields.

As investor sentiment shifts and reallocates funds, large-cap ETFs are positioned to see increased inflows, boosting their performance.

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