ETF launches exceed 370 in four months as actives surge

The ETF industry launched more than 370 new funds in just over four months of 2026, according to VettaFi. The pace places the market on track for roughly 1,100 to 1,200 launches for the full year, matching the record set in 2025.

Approximately 80% of the new offerings employ active management. Kirsten Chang, senior industry analyst at VettaFi, described the shift as a “democratization of the hedge fund.” She noted active strategies now dominate the product pipeline.

The ProShares Genius Money Market ETF (IQMM) has collected more than $22 billion in assets since its launch in 2026. Chang attributed a large portion of IQMM’s growth to internal cash management rather than third-party investor flows.

Space-themed ETFs have drawn notable inflows as issuers position for a potential SpaceX initial public offering that some estimate could value the company near $1.5 trillion. The Procure Space ETF (UFO) expanded from about $50 million to roughly $750 million over the past year. New entrants include the Roundhill Space & Technology ETF (MARS), the Tema Space Innovators ETF (NASA) and the Global X Space Tech ETF (ORBX). VettaFi provides the index for UFO and receives an index licensing fee; VettaFi is not the issuer, sponsor or seller of UFO and has no obligation related to its issuance or trading.

Issuers are also launching more targeted artificial intelligence infrastructure funds. The Roundhill Memory ETF (DRAM) reached $1 billion in assets within 10 days of launch and now holds about $3 billion. Materials and supply-chain diversification strategies have appeared as well: the Sprott Rare Earths ex-China ETF (REXC) targets inputs for green energy and electric vehicles and aims to reduce reliance on Chinese supply chains.

Fidelity introduced four systematic active ETFs: the Fidelity Enhanced Small Cap Growth ETF (FSEG), Fidelity Enhanced Mid Cap Growth ETF (FEMG), Fidelity Enhanced Small Cap Value ETF (FSEV) and Fidelity Enhanced Mid Cap Value ETF (FEMV). The funds are priced between 23 and 28 basis points.

Milliman entered the ETF market with two healthcare inflation-focused funds. Adam Schenck, principal and managing director at Milliman Financial Risk Management, described the objectives this way: “The Milliman Healthcare Inflation Guard ETF (MHIG) targets returns commensurate with healthcare inflation at approximately 7%,” and “the Milliman Healthcare Inflation Plus ETF (MHIP) aims to overshoot healthcare inflation by 200 basis points.” Milliman advises on $242 billion in assets and says the funds use proprietary Health Trend Guidelines developed from claims data.

The pace of new listings in 2026 matches last year’s record. Chang noted pricing and product design increasingly reflect competition among passive, enhanced-index and active strategies as issuers supply specialized exposures and cash-management options.