Trillion-Dollar Trends

Matthew Allgood |

 

Investor optimism is showing up in big ways: U.S. exchange-traded funds (ETFs) have already taken in over $1 trillion this year, breaking 2021’s record with two weeks left to go. November was especially striking, with daily inflows averaging $7.3 billion, fueled by expectations that the incoming Trump administration’s tax policies could boost growth. Equity ETFs saw the biggest gains, while fixed-income funds quietly kept their 34-month winning streak alive. 

This surge in ETF flows signals that investors are putting cash to work, even as markets reach new highs. However, it's essential to recognize that while inflows are increasing, they don't necessarily predict future market movements. This underscores why we maintain a diversified portfolio, ensuring you are well positioned to handle unexpected market movements.

Trillion-Dollar TrendsA graph of a growing graph Description automatically generated with medium confidence

Source: Bloomberg, Redwood. Data as of 12/12/2024. Date range 1/1/2004 – 12/12/2024. For Illustration purposes only.

Regards,

Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions of Redwood that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. Diversification of asset class is not a guarantee against loss.

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