2014 was a record-setting year for US-listed ETFs, with assets exceeding $2 trillion by year end, according to Morningstar. This increase of approximately 18% versus the end of 2013 was fueled by record net inflows, which totaled an estimated $241.9 billion.¹ As usual, ETF net flows were not equally distributed among major asset categories. Results for the fourth quarter were generally in line with the full year, as 3 of the top 4 categories for inflows were equity-related (US Equity, Sector Equity, International Equity), while the Taxable Bond category received the second most inflows during the fourth quarter and the full year. Also following the trend established during most of 2014, the Commodities ETF category had the largest net outflows.
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¹Morningstar Direct. Includes all US-listed exchange-traded funds, exchange-traded notes and other exchange-traded products.