Oct 14 (Reuters) - Investors are directing money into

U.S.-based exchange-traded funds at a rapid clip, pushing

inflows so far this year across the $1 trillion line, State

Street Investment Management said on Tuesday.

That puts U.S. ETF inflows on pace to set a new annual

record of as much as $1.4 trillion by the end of 2025, State

Street said, with virtually every category benefitting from the

torrent of new cash as investors continue to yank money out of

traditional mutual funds in favor of lower-cost and more liquid

ETFs.

"Any market correction might slow the pace but it wouldn't

halt the trend," said Matthew Bartolini, global head of research

strategists at State Street.

Last year, ETF flows reached the $1 trillion mark on

December 11, State Street said, marking the first year they hit

that threshold. This year, the breakneck pace has accelerated,

with investors steering money into everything from low-cost,

plain-vanilla ETFs tied to the Standard & Poor's 500 Index to

cryptocurrencies and gold, Bartolini said.

Overall, assets in the U.S. ETF industry stood at $12.7

trillion at the end of September after 41 straight months of net

inflows, according to data released on Tuesday from industry

analysis firm ETFGI. Year-to-date, the pace of asset growth

stands at nearly 23%, ETFGI said.

Crossing the $1 trillion mark in flows "underscores the need

for accelerating innovation, expanding market access and scaling

education," said Elise Terry, head of U.S. iShares at BlackRock ( BLK )

, the single-largest global ETF issuer.

Michael Venuto, chief investment officer of Tidal Financial

Group, a provider of ETFs, said the outflow of assets from

mutual funds will continue to propel ETF inflows higher. Mutual

fund outflows totaled $481 billion in the first nine months of

2025, according to data from Morningstar.

"What's happening is impressive because it's continuing at a

time when there's growing uncertainty in the markets," Venuto

said. "But we're having discussions daily" with asset managers

hoping to launch new ETFs or convert existing mutual funds into

ETFs, he said.