Group 1 - The article highlights the first coverage of an AAA CLO fund on the Seeking Alpha platform, specifically the Janus Henderson AAA CLO ETF (NYSEARCA: JAAA) from 2022, indicating a prescient analysis [1] - Binary Tree Analytics (BTA) aims to provide transparency and analytics in capital markets instruments and trades, focusing on Closed-End Funds (CEFs), Exchange-Traded Funds (ETFs), and Special Situations [1] - BTA seeks to deliver high annualized returns with a low volatility profile, leveraging over 20 years of investment experience and a finance major from a top university [1]

Core Insights - The US ETF market is experiencing unprecedented growth in 2024, with record inflows and new issuances, surpassing $10 trillion in assets under management [1][3][5] - The surge is driven by various factors, including the popularity of cryptocurrency-related ETFs and actively managed ETFs, which have attracted significant capital [1][2][3] Market Growth - In 2024, investors contributed $1.12 trillion to the US ETF market, marking the first time inflows reached the trillion-dollar level, resulting in a total asset management size of $10.4 trillion [3][5] - The growth of the ETF market is attributed to both market performance and capital inflows, with a notable increase in the number of ETFs, totaling 3,934 after 757 new ETFs were launched [5][7] Asset Class Performance - Equity and fixed income ETFs reached record inflows in 2024, with money market ETFs also gaining traction, attracting over $38 billion, a significant increase from previous years [8][10] - Fixed income ETFs accounted for 26% of total inflows, despite a strong stock market that limited their market share growth [10][11] Investment Strategies - The competition among ETFs spans various asset classes and strategies, with a growing interest in actively managed products, which saw inflows significantly exceeding initial market share expectations [11][12] - In 2024, actively managed equity ETFs attracted $145 billion, far surpassing initial market share predictions by $114 billion, while actively managed bond ETFs saw inflows of $110 billion, exceeding expectations by $16 billion [14][18] Cost Trends - The average cost of ETFs in the US has seen a slight increase of 0.003%, reversing a long-term trend of declining fees, primarily due to the rising costs of actively managed ETFs [23][25] - The average cost of bond ETFs rose by 0.005%, driven by the increased market share of actively managed bond ETFs, which have higher fees compared to vanilla bond funds [28][30] Popular ETFs - The top ten equity ETFs by inflow in 2024 included low-cost vanilla ETFs like VOO and IVV, alongside higher-cost strategy ETFs such as QQQ and RSP [45][47] - In the fixed income category, the top inflows were dominated by core vanilla holdings like AGG and BND, with notable entries from actively managed funds like JAAA and FBND [52][54] Emerging Trends - The approval of spot cryptocurrency ETFs has revitalized the money market ETF segment, with significant inflows into products like the Invesco Bitcoin Trust ETF [55][56] - Leveraged ETFs, particularly those focused on single stocks and cryptocurrencies, have gained popularity, with products like the GraniteShares 2x Long Nvidia Daily ETF (NVDL) seeing substantial interest [56][60]