July US ETF inflows lift 2026 toward record, State Street

State Street Investment Management reported that investors deployed $189 billion into US-listed exchange-traded funds in July, bringing year-to-date inflows to $1.2 trillion. The firm said macroeconomic risks and concerns about crowded positions in artificial intelligence stocks outweighed strong corporate earnings and pushed global stocks and bonds lower during the month.

Equity ETFs drew $134 billion in July while bond ETFs attracted $52 billion. Active ETFs recorded $58 billion of inflows and pushed active ETF assets past $2 trillion for the first time. Based on current trends, State Street estimates active products are on pace for about $800 billion of annual inflows in 2026.

Within equity flows, US exposures accounted for $92 billion and non-US equities added $35 billion. Single-country ETFs saw a record $8 billion of inflows in July. Sector-focused funds collected a record $25 billion, led by Technology with $19 billion despite the sector averaging roughly a 10 percent decline for the month. Financials added about $3 billion and Health Care took in $2.2 billion.

Bond ETFs have accumulated $352 billion in inflows year to date and are on pace to surpass 2025’s record of $433 billion. The firm pointed to rising bond fund demand and heavy allocations to active strategies after recent market volatility.

Exchange-traded funds package baskets of stocks or bonds into single securities that trade on exchanges and are used by investors for quick portfolio adjustments. State Street’s July figures show large capital flows into ETFs continued despite macroeconomic concerns and sector crowding.