Flows into US ETFs cross $1 trillion at record pace, State Street Investment Management says

By Suzanne McGee

(Reuters) -Investors are directing money into U.S.-based exchange-traded funds at a rapid clip, pushing inflows so far this year across the $1 trillion line, State Street Investment Management said on Tuesday.

That puts U.S. ETF inflows on pace to set a new annual record of as much as $1.4 trillion by the end of 2025, State Street said, with virtually every category benefitting from the torrent of new cash as investors continue to yank money out of traditional mutual funds in favor of lower-cost and more liquid ETFs.

“Any market correction might slow the pace but it wouldn’t halt the trend,” said Matthew Bartolini, global head of research strategists at State Street.

Last year, ETF flows reached the $1 trillion mark on December 11, State Street said, marking the first