US investors went all-in on ETFs in May — it was practically “Every Trader’s Favorite” month. US stocks grabbed the spotlight, securing $56B out of the total $116B poured into exchange-traded funds (ETFs). Actively managed ETFs also saw $22B in inflows, marking their 50th straight month of gains.

• While most investments flowed into US equities, there was also considerable interest in European equities and the utility sector.
• High-yield bond ETFs received $5.4B in net inflows — their strongest influx since November — due to their attractive high yields.

Go with the flow: Over the past decade, assets in ETFs have grown nearly 4x while mutual funds grew just 71%. Today, investors can find ETFs for almost anything, including leveraged single-stock ETFs, ones centered on companies in the weight loss industry, and this year, the debut of a spot bitcoin ETF (with Ethereum ETFs on the horizon). ETFs have become the go-to investment for many, thanks to their tax efficiency compared to mutual funds and greater diversification compared to individual stocks. Seems like ETFs are clearly the favorite, and this trend shows no signs of stopping.