Goldman Sachs: US ETF Inflows to Top $2 Trillion by 2026

Goldman Sachs projects US-listed Exchange-Traded Funds (ETFs) will attract over $2 trillion in 2026, a significant 40% increase compared to 2025 inflows. This forecast follows a robust first half of 2026, which already saw investments exceeding $1 trillion into these funds.

Key Projections & Current Inflows

• US-listed ETF inflows projected to surpass $2 trillion in 2026.
• This represents a 40% increase over 2025 inflows.
• Over $1 trillion already invested in US-listed ETFs during the first six months of 2026.
• Active ETFs attracted more than 35% of inflows in 2026, despite comprising only 13% of the $16.1 trillion in total US-listed ETF assets under management.

This substantial growth signals a fundamental shift in the ETF market, moving beyond simple index tracking. Investors are increasingly leveraging ETFs for active management, sophisticated portfolio construction, targeted thematic exposure, and strategic risk management.

Innovation Fuels Market Expansion

Rapid product innovation is a critical driver for this expansion. Over 1,100 new ETFs were introduced in 2025, a record expected to be broken in 2026, potentially leading to more than 6,000 US-listed ETFs available.

Investor demand for customized portfolios and specific thematic strategies also continues to surge. Assets in third-party model portfolios grew by 46% over the past year, reaching $950 billion, indicating a clear preference for tailored investment solutions.

Thematic ETFs, notably those focused on sectors like semiconductors, demonstrate this trend vividly. Semiconductor ETFs recorded over $19 billion in June alone, marking their highest monthly inflow ever.

Broadened Adoption and Trading Activity

The role of ETFs is further expanding due to their increasing adoption by institutional investors, including pension funds, alongside traditional retail and wealth management clients. This broad acceptance underscores their versatility across diverse investment portfolios.

Trading volumes for ETFs have also seen a remarkable surge, increasing by 50% compared to 2025, which itself was a record year. The industry now averages approximately $320 billion in notional trading volume daily.

During periods of market volatility, ETFs can account for as much as 40% of total trading activity. Goldman Sachs highlights that ETFs are now routinely used for essential functions such as portfolio rebalancing, hedging against market shifts, liquidity management, and gaining exposure to specific investment themes.