The numbers are in, and the story of ETF adoption goes on undeterred. In July, ETFs saw their third month this year of asset inflows exceeding $190 billion. If 2025 was a record-breaking year for ETF asset creation, 2026 is promising to upstage it.
Key Takeaways:
- Daily net inflows are averaging $5.7 billion in 2026, a 40% increase over 2025’s record pace.
- Heavy demand for exposure to large-cap, global, and market-broadening strategies continues to drive equity ETF flows.
- Flight to ultra-short debt and alternative diversifiers remains a key theme.
In seven months, we already have over 82% of 2025’s massive record haul in the books. The pace of asset flows is remarkable. For simple context, we are currently averaging $5.7 billion in net inflows a day in 2026. That’s up about 40% from the record average pace we saw last year.
In July, $192.7 billion flowed into ETFs, bringing year-to-date net creations to $1.215 trillion. If this pace holds, we could near or breach 2025’s calendar year haul in the next month or two.
Equity ETF Demand Soars
Large cap equity exposure remains a hot spot for investor appetite. The month of July saw 65% of flows go into equity ETFs, with a number of S&P 500 funds, semiconductor ETFs, and the Invesco Nasdaq 100 ETF (QQQM) among the month’s leaders.
Also noteworthy is that more than 36% of equity demand landed in international equity ETFs. Going global — especially into AI-value-chain hubs — was a popular move.
Some of the most in-demand international equity ETFs in July included the iShares MSCI South Korea ETF (EWY), which took in $4.8 billion during the month. The iShares MSCI EAFE Value ETF (EFV) was another big name, raking in $3.8 billion in a month when value-focused strategies beat growth-focused ones on the asset gathering game.
The catch-all Vanguard Total International Stock ETF (VXUS), too, was popular, taking in more than $3 billion just as the narrowly focused Roundhill Memory ETF (DRAM) — the year’s hottest thematic ETF — had another stellar month. DRAM picked up $6.2 billion in net new money in July, bringing its year total haul to $26.2 billion. DRAM is a global portfolio, about 50% allocated to South Korea and 40% to U.S. names.
One of the year’s smart beta darlings, the Invesco S&P 500 Equal Weight ETF (RSP), which has captured the market broadening story with standout performance, had another solid month of inflows. RSP gathered $2.1 billion in net creations in July, bringing its year-to-date haul to $12 billion. Other equal-weighted strategies continue to expand their traction as investors buy into the broadening and manage concentration risk.
Some Bonds, Not Others
During the month, fixed income ETFs took in about 40% of all flows, exceeding $51 billion in net creations. This asset class has now attracted more than $371 billion in net new money this year, about 30% of the year’s total flows.
With duration continuing to challenge investors as prices on long-dated bonds feel the weight of inflation concerns and expectations of higher rates ahead, it’s ultrashort-term debt ETFs as well as some flavors of credit that are taking in the lion’s share of investor demand.
Some of the most popular tickers this year include the iShares 0-3 Month Treasury Bond ETF (SGOV), which captured $4 billion net new money in July. SGOV has year-to-date inflows now exceeding $31 billion. SGOV is the most popular ultra-short bond ETF this year, but the category itself has been a popular destination for investor dollars looking for income.
Other funds like the JPMorgan Ultra-Short Income ETF (JPST), which saw $1.2 billion in net inflows in July and YTD totals of over $5 billion, are also among the year’s popular income solutions.
On the credit side, the PGIM AAA CLO ETF (PAAA) had a billion-dollar-plus month of asset creations, bringing its total asset gathering to over $5 billion in 2026. CLOs remain a stronghold of investor appetite for quality credit exposure this year.
More Diversification, Please
Outside of equities and fixed income, investors continued to seek diversifiers, pouring assets into alternatives ETFs as well as real-asset-type of strategies.
Alts ETFs, which are a relatively quiet category, are home to funds like the iShares Systematic Alternatives Active ETF (IALT), which has picked up more than $5.1 billion in 2026, and the iMGP DBi Managed Futures Strategy ETF (DBMF), which is nearing $2 billion in year-to-date inflows.
The State Street Multi-Asset Real Return ETF (RLY), the Franklin Systematic Style Premia ETF (FLSP) and the Simplify Managed Futures Strategy ETF (CTA) are other examples of ETFs that have been gathering assets this year. As a category, alts have now picked up nearly $30 billion in assets in 2026.
Finally, within commodities ETFs and the pursuit of real asset diversification, the abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI) and the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) led ETF inflows in July taking in more than $1 billion in combined assets. We also saw appetite pick for for silver and gold ETFs during the month.
ETFs Meeting Investor Needs
As the pace of ETF adoption consistently grows, it’s been rewarding (as an ETF enthusiast) to see how the ETF structure continues to solve investor needs in any market environment, across all asset classes. Whether it’s a broad benchmark, a theme, a segment, a niche or a strategy, record asset creations are a testament to the value proposition of the ETF wrapper. July was another month for the books.
For more news, information, and strategy, visit ETF Trends.
Originally posted on ETF Trends
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