U.S. ETFs log record inflows, $196B in June

U.S.-listed exchange-traded funds recorded record inflows in the first half of 2026, according to State Street Investment Management. State Street reported $196 billion in net inflows in June and $560 billion in the second quarter, the largest three-month total on record. The first six months of 2026 would already rank as the third-largest full calendar year on record, and State Street projects full-year flows could reach $2.3 trillion.

Flows concentrated in low-cost core index funds. The iShares Core S&P 500 ETF (IVV) led all funds in June with $43.6 billion in net inflows. Other S&P 500 trackers drew large allocations: the SPDR Portfolio S&P 500 ETF (SPYM) added $7.7 billion and the SPDR S&P 500 ETF (SPY) took in $6.7 billion. Vanguard’s Total Stock Market ETF (VTI) captured $6.5 billion in June, bringing its year-to-date total to more than $31 billion.

Active ETFs recorded a record month in June with $74 billion of inflows, lifting year-to-date flows for active strategies to $398 billion and putting the category on pace for roughly $820 billion by year end. Equity ETFs overall attracted about $150 billion in June, raising their six-month total to $695 billion. The equity market fell 0.9% in June.

Technology-focused sector funds drew $13.3 billion in June, accounting for 78% of all sector inflows for the month. The Invesco NASDAQ 100 ETF (QQQM) and the iShares Semiconductor ETF (SOXX) collected $4.6 billion and $4.1 billion respectively in June, even as the tech sector declined 3.3% amid concerns about AI regulation and corporate spending.

Fixed-income ETFs added $55 billion in June, bringing year-to-date inflows to about $300 billion. Advisors favored shorter-duration and credit exposures. Shorter-duration government bond ETFs took in $8.1 billion in June, with the iShares 0-3 Month Treasury Bond ETF (SGOV) attracting about $4.0 billion. Inflation-protected bond ETFs added $1.9 billion, marking the 17th month of inflows in the past 18 months as core consumer prices remained near 4.2%. Investment-grade corporate bond ETFs drew $10.8 billion during the month.

Style flows shifted between May and June. Value-focused ETFs pulled in $12.5 billion in June, moving ahead of growth for the year-to-date. The Avantis U.S. Large Cap Value ETF (AVLV) gathered $3.7 billion in June. Dividend-focused ETFs collected $6.3 billion as investors sought income-oriented equity exposures.

State Street’s report notes that advisors increased allocations to low-cost core index funds and used active and sector-specific ETFs to express tactical views while positioning portfolios for a higher-for-longer interest rate outlook.