Capital inflows matter to any asset class. Whether we’re talking stocks, bonds, or even crypto, where the money is flowing matters a great deal. In essence, the stock market is just like a beauty pageant, except contestants need to consider which model the market (other participants) will view as the most attractive. Right now, certain ETFs are seeing more capital inflows than others.

The three exchange traded funds I’ve listed below are among the fastest-growing ETFs in terms of percentage fund inflows. Many of these ETFs are ones I honestly haven’t heard of before, but I can understand the rationale behind why certain investors are picking these funds. Accordingly, it should be fun to dive into these specific funds and why investors are clearly focusing more capital toward the sectors and stocks held in these investing vehicles.

Without further ado, here are three of the most sought-after ETFs investors may want to put on their watch lists right now.

Key Points About This Article:

• In the exchange traded fund (ETF) world, capital inflows can matter a great deal for investors looking to skate where the puck is headed.
• These three ETFs have seen some of the bigger percentage inflows over the past year, and are certainly worth diving into.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

iShares Core S&P 500 UCITS ETF (CSPX)

As of October 2024, the iShares Core S&P 500 UCITS ETF (CSPX) has experienced significant inflows and growth in assets. The ETF recorded $176.24 billion in net inflows as of September 2024, marking the highest year-to-date inflows on record for any ETF. That’s certainly a feat worth exploring. 

This ETF also noted 24 consecutive months of net inflows, one of the highest in the ETF industry, with nearly $25 billion attracted to this fund in September alone. That said, the overall size of this fund sits at “only” $102.96 billion. Thus, compared to much larger funds (with lower fees), it’s worth considering why this is the case. That’s to say nothing of the fact that CSPX has a management expense ratio of only 7 basis points (o.07%), but it’s a factor worth noting.

The rationale behind these capital inflows appears to be the increased demand seen for large-cap stocks. This fund is focused on providing investors with exposure to globally-diversified large, established U.S. companies. With greater size tends to come greater safety, and in this environment, it’s understandable why more capital is flowing to funds that may be viewed as more defensive, but still have ample growth upside over time.

10X Global Dividend Aristocrats ETF (GLODIV)

In 2024, the 10X S&P Global Dividend Aristocrats ETF (GLODIV) has experienced notable inflows and growth. As of October 2024, this ETF’s total assets under management stood at approximately R3.4 billion. The ETF has seen significant inflows throughout the year, contributing to its growth in total assets. Specific figures regarding inflow amounts for each month are not detailed in the available sources, but the overall trend indicates increasing investor interest.

This ETF’s most recent semi-annual distribution was 16.58 cents per unit in June 2024, reflecting the fund’s commitment to providing returns to its investors. The ETF tracks the S&P Global Dividend Aristocrats Blend Index, which includes companies with a strong track record of consistent dividend payments, appealing to income-focused investors amid a fluctuating market environment.

This combination of solid performance and investor confidence suggests a positive outlook for GLODIV as it continues to attract capital in 2024.

iShares S&P 500 Information Technology Sector UCITS (IITU)

The most recent data regarding inflows for the iShares S&P 500 Information Technology Sector UCITS ETF (IITU) in 2024 indicates robust performance and significant capital inflows. Now, it’s worth noting that this is a very small ETF, with a fund size of approximately $9.53 billion. However, this ETF has recorded a 34.83% increase in value year-to-date as of mid-October, and this outperformance does appear to be inviting plenty of activity from those chasing outsized returns. 

Much of this investment activity has come from investors looking to amplify their exposure to tech stocks. One can debate whether this is a smart move right now, given how far the sector has run and many of the red flags we’re seeing form with the economy. But with momentum will come new capital, so this surge in capital into the IITU ETF isn’t all that surprising.

With the ETF’s three largest holdings (Apple, Nvidia and Microsoft) making up roughly 60% of this overall ETF, investors who want outsized exposure to these three stocks may seek out this ETF as a way to add additional concentration to these behemoths.

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