Inflows into U.S.-listed exchange-traded funds surpassed $1.54 trillion from the start of the year through the end of September 2026, according to data from State Street Investment Management, exceeding the previous annual record of $1.52 trillion set in 2025. Matthew Bartolini, the firm’s global head of research strategy, forecast that inflows would reach $2.3 trillion by year-end.
Equity funds lead inflows
Equity funds led inflows from the start of the year, attracting more than $1 trillion, followed by fixed-income products with inflows exceeding $469 billion. Among equity sectors, technology funds recorded the largest inflows, at more than $59 billion, while the financial sector recorded the largest outflows, at more than $3.8 billion.
Geographically, funds tracking U.S. equities accounted for the largest share of inflows, at about $655 billion, followed by funds tracking international developed markets, with inflows of $150.4 billion.
Investors favor exchange-traded funds
Investors continue to favor exchange-traded funds as a primary tool for allocating capital, building portfolios and adapting to changing market conditions, while mutual funds remain mired in sustained outflows
Equity gains and market volatility
The Vanguard S&P 500, the world’s largest exchange-traded fund by assets under management, has gained more than 13% from the start of the year through Friday morning.
Enthusiasm over artificial intelligence and strong earnings drove U.S. equities to record highs earlier in the year, before inflation concerns stemming from the conflict between the United States and Iran, along with rising bond yields, triggered market volatility over the past month.
