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.