Inflows into U.S.-listed exchange-traded funds have already surpassed the full-year record set in 2025, with investor demand expected to accelerate further through the end of the year, according to State Street Investment Management data cited by Reuters.
Year-to-date inflows into U.S.-listed ETFs exceeded $1.54 trillion at the end of September, topping the previous annual record of $1.52 trillion set in 2025.
Matthew Bartolini, global head of research strategists at State Street Investment Management, expects total inflows into U.S.-listed ETFs to reach about $2.3 trillion by the end of 2026.
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Equity ETFs have attracted more than $1 trillion in inflows so far this year, making them the biggest recipient of investor money. Fixed-income ETFs have drawn more than $469 billion, reflecting continued demand for bond exposure amid shifting interest-rate expectations.
Within equity sectors, technology-focused ETFs have recorded the strongest inflows, attracting more than $59 billion so far this year. Financial-sector ETFs, meanwhile, have seen the largest outflows, with investors pulling more than $3.8 billion from the funds.
By geography, ETFs tracking U.S. stocks have attracted the most capital, with inflows of about $655 billion. Funds focused on developed international markets have drawn roughly $150.4 billion, according to State Street data cited by Reuters.The surge highlights the growing role of ETFs as investors seek liquid and flexible vehicles to allocate capital and adjust portfolios as market conditions change. Mutual funds, in contrast, have continued to see persistent outflows.
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Strong corporate earnings and enthusiasm around artificial intelligence helped push U.S. stocks to record highs earlier this year. However, markets turned more volatile last month as inflation concerns linked to the U.S.-Iran conflict coincided with a sharp rise in bond yields.
Despite those pressures, continued inflows into ETFs underscore sustained investor demand for market exposure through exchange-traded products.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
