• The growth of ETFs is a reflection of both the confidence of U.S. investors in financial markets and of the dwindling popularity of mutual funds.
• The fund that has enjoyed the biggest demand this year is the Vanguard S&P 500 ETF (VOO), which has raked in roughly $100 billion, according to FactSet.
• U.S. ETFs now have more than $10 trillion in assets overall, according to ETFGI.

A record year for the exchange-traded fund industry recently crossed another milestone, surpassing $1 trillion of total inflows for the first time, according to research firm ETFGI and the Investment Company Institute.

WATCH ANYTIME FOR FREE

>Stream NBC10 Boston news for free, 24/7, wherever you are.

The fund that has enjoyed the biggest demand this year is the Vanguard S&P 500 ETF (VOO), which has raked in roughly $100 billion, according to FactSet. The fastest-growing new fund is the iShares Bitcoin Trust (IBIT), which has attracted more than $34 billion since its launch in January.

The growth of ETFs is a reflection of both the confidence of U.S. investors in financial markets and of the dwindling popularity of mutual funds, which have seen more than $200 million of outflows this year, according to a Nov. 30 report from State Street Global Advisors. Some mutual fund managers have even been converting their products into ETFs.

The previous record for U.S. ETF inflows was about $920 billion in 2021, and they now have more than $10 trillion in assets overall, according to ETFGI.

Also on CNBC

• Budget deficit swells in November, pushing fiscal 2025 shortfall 64% higher
• Nasdaq rallies above 20,000 for the first time as tech shares gain
• Stocks making biggest moves midday: Broadcom, GE Vernova, Stitch Fix and more

Subscribe to the CNBC YouTube Channel

Morning Squawk Newsletter