US-listed ETFs on course for record annual inflows, State Street says

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Oct 2 (Reuters) – Inflows into US-listed exchange-traded funds (ETFs) through end-September have already exceeded any full-year total on record and are expected to grow further by year end, according to State Street Investment Management data.

Year-to-date inflows stood at more than $1.54 trillion as of end of September, topping the annual record of $1.52 trillion set in 2025.

Here are the details:

• State Street Investment Management’s global head of research strategists, Matthew Bartolini, expects total ETF inflows by US-listed funds to reach $2.3 trillion by the year end

• Equity ETFs have led inflows so far this year, taking in more than $1 trillion alone, followed by fixed income products which have taken in over $469 billion

• Among equity sectors, technology funds have marked the biggest inflows so far this year at over $59 billion, while financials has lost the most to mark outflows of over $3.8 billion

• On the basis of geography, funds tracking US stocks have taken in the most this year at about $655 billion, followed by funds tracking international developed markets at inflows of $150.4 billion

• “Investors continue to favor ETFs as their primary tool for allocating capital, building portfolios, and adapting to changing market conditions, while mutual funds remain mired in persistent outflows,” said Bartolini

• As of Friday morning, the Vanguard S&P 500 ETF, the biggest ETF in the world in terms of assets under management, gained over 13% so far this year

• Enthusiasm for AI and strong earnings pushed US stocks to record highs earlier this year, but inflation fears arising from the US-Iran conflict and soaring bond yields spurred volatility last month

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Shailesh Kuber)

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