Nasdaq's Reason for '20,000'... $1,400 Trillion Poured into US ETFs This Year

Funds flowing into U.S. exchange-traded funds (ETFs) this year have surpassed $1 trillion, marking an all-time high.

On the 11th (local time), U.S. economic media CNBC reported, citing market data provider ETFGI and the Investment Company Institute (ICI), that net inflows into U.S.-listed ETFs this year have exceeded $1 trillion (approximately 1,400 trillion KRW). This surpasses the previous record of $920 billion (about 1,300 trillion KRW) set in 2021. Currently, the total assets under management in U.S. ETFs have exceeded $10 trillion.

According to FactSet data, among individual ETFs, the Vanguard S&P 500 ETF (VOO) ranked first by absorbing $100 billion. It was followed by the iShares Core S&P 500 ETF (IVV, $61 billion), iShares Bitcoin ETF (IBIT, $34.8 billion), Vanguard Total Stock Market ETF (VTI, $26.7 billion), and Invesco QQQ Trust (QQQ, $26.6 billion). IBIT, launched in January, is the fastest-growing new ETF.

CNBC explained that this ETF growth trend is supported by confidence in the financial markets and U.S. investors, as well as a decline in the popularity of traditional mutual funds.

Meanwhile, as the U.S. stock market continues its rally, the Nasdaq index, which is tech-stock focused, surpassed the 20,000 mark for the first time ever on this day. Among the so-called seven major big tech stocks known as the 'Magnificent 7 (M7)', five of the seven stocks set intraday record highs, fueling the Nasdaq's upward momentum.