These 10 ETFs have seen the biggest surges in investor popularity over the last year
- A barrage of new ETFs continues to hit the market.
- Using Morningstar data, Business Insider has compiled the top 10 most popular ETFs in 2024.
- A pair of investment-grade bond funds led the way.
The ETF space continues to explode with new products since a 2019 SEC rule change made them easier for firms to launch. According to Morningstar data, a record 756 new ETFs were launched in 2024, and flows into products hit $1 trillion for the first time.
But amid the market saturation, some funds have enjoyed more popularity than others. Using data obtained from Morningstar Direct, we’ve listed below the 10 most trendy ETFs in 2024.
Morningstar has ranked them by what they call “Organic Growth Rate,” or the “cumulative net flows a fund has over a period of time divided by the total net assets of the fund at the beginning of the period,” according to Dillon McConnell, an associate quantitative analyst at the firm.
This measure takes a fund’s performance, which impacts the total value of assets under management over a given period, out of the equation. It also looks at a fund’s inflows relative to where its AUM started instead of comparing inflows on an absolute basis, where the largest funds might outpace the rest.
Interestingly, the two most popular funds were investment-grade bond products, which are low-risk investments. Four of the products were on the extremely risky end of the spectrum, being leveraged funds tied to already volatile assets.
The full list is shown below in ascending order of growth rate, along with their organic growth rate (inflows divided by starting AUM), their net inflows over the last 12 months, and their AUM as of the end of January 2025. The time period considered is February 1, 2024-Janauary 31, 2025.