## [# On the Road to a $10 Trillion U.S. ETF Industry](/sections/features/road-10-trillion-us-etf-industry)
# On the Road to a $10 Trillion U.S. ETF Industry
Strong flows and performance are required to reach that lofty level.
[](/authors/sumit-roy)
[By Sumit Roy ](/authors/sumit-roy)
Feb 26, 2024
Edited by: Ron Day
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As stock markets push higher, a major ETF industry milestone looms: $10 trillion in assets.
Will it be reached this year? While $9 trillion appears eminently doable, that next trillion will come in only if the right combination of performance and flows fall into place.
Assets under management in U.S.-listed ETFs hit a record $8.53 trillion last week, according to Bloomberg data, as the S&P 500 hovered near record highs.
Investors have pushed $70 billion into exchange-traded funds so far this year. Still, most of 2024’s asset gains have come from price appreciation and not inflows: of this year’s $380 billion increase in AUM, $310 billion has come from ETFs increasing in price.
Around 61% of all U.S.-listed ETF assets are invested in domestic equity funds, so movements in the U.S. stock market play a big part in driving assets under management up and down.
Another 17% is invested in international equity ETFs, meaning that nearly 8 out of every 10 dollars in ETFs is invested in stocks.
Much of the remainder, or a fifth of the total, is invested in fixed income exchange-traded funds.
**The Road to $10T**
At $8.53 trillion, ETF assets under management are around 18% short of the $10 trillion mark. To reach that lofty milestone this year, we would need to see a combination of surging markets and robust inflows.
Five years ago, AUM in U.S.-listed ETFs stood at only $3.5 trillion and now we’re on pace to reach triple those levels as soon as this year. The past two years have seen roughly $600 billion of annual inflows, while the year before that had a record $900 billion of inflows.
ETF AUM will probably surpass $9 trillion this year just based on new money coming into funds. Getting to $10 trillion this year would probably take some help from the markets.
If the U.S. stock market slides, all bets are off and $10 trillion almost certainly won’t happen in 2024. But if get a strong double digit rise in the S&P 500, then it starts to become feasible.
In any case, $10 trillion is just a matter of when, not if. And it’s a testament to the enormous growth that ETFs have seen over the past decade.
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[ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy)
Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including… [View Bio](/authors/sumit-roy)
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