Record ETF Inflows Near $1 Trillion as Markets Anticipate Fed Moves

Investors are pouring nearly $1 trillion into exchange-traded funds (ETFs) this year, defying traditional caution ahead of Federal Reserve decisions. Equity ETFs alone have absorbed $475 billion, while mutual funds face outflows—a stark divergence in market behavior. The momentum persists despite April's volatility and tariff tensions, spanning index funds, crypto products, and high-yield debt.

Goldman Sachs CEO David Solomon captured the sentiment: 'Risk appetite suggests monetary policy isn’t restrictive.' Markets validated this view as the S&P 500 hit fresh records, even amid labor market softness. Over $120 billion flooded ETFs in the past month, with passive strategies dominating through target-date funds and robo-advisers—a shift dubbed the 'autopilot effect.'