S&P 500 ETFs gained popularity, dominating global equity flows

In 2023, S&P 500 ETFs attracted a record $137bn, comprising 27% of global equity ETF flows, up from 9% in 2022. The US market now holds 60.5% of global stock market capitalization, up from 28.6% in 1989. The S&P 500's strong performance led to increased demand. Despite SPY's recent outflows, S&P 500 ETFs still accounted for 20% of global equity ETF buying in early 2024.