ETF Macro Insights - February 4, 2025

ETF Stats at Large

• ETF assets have surpassed $10 trillion in total assets. Equites represent the lion’s share with over $8 trillion. Fixed Income continues to rapidly grow and has over $1.8 trillion.
• Over 700 new ETFs launched in 2024, with over 500 of those under the active label.  Astoria believes active ETFs will gain popularity if the market rotation away from the Mag 7 gains momentum over a multi-year period.
• Crypto ETFs exploded last year.  Net flows were over $40 billion in year 1.  With a pro-crypto administration and large wirehouses who have yet to approve these products, it’s easy to see more inflows in year 2 than year 1.
• Watch single stock leverage ETF products. With ample  liquidity sloshing around the system and a bull market that continues to run, levered stock ETFs are the one area to watch for irrational exuberance.
• According to Todd Sohn, derivatives-based strategies exploded in both product number and assets in 2024. There were almost 300 new funds that use the derivatives market to some capacity. Levered single stock funds, option writing, and structured outcomes are the key areas here.
• Active Fixed Income ETFs ‘quietly’ took in $100 billion of assets. Astoria believes there are large systemic risk with the longer-term debt cycle, and one needs to be tactical in fixed income. Hence, we believe active fixed income could have a big year from an asset gathering standpoint.

Read more in the January update of Astoria's ETF Macro Insights. https://www.astoriaadvisors.com/single-post/etf-macro-insights-february-2025