U.S.-listed ETFs are expected to attract $2 trillion in flows this year, a 40% increase over 2025, according to Goldman Sachs global banking & markets.

The bank said in a report that U.S.-listed ETFs had inflows of more than $1 trillion in the first half of 2026, pushing  the market toward an expected record of more than $2 trillion for the full year.

Investments in US-listed ETFs are expected to exceed $2 trillion this year according to Goldman Sachs Global Banking & Markets—a 40% increase from 2025 levels. Read more: https://t.co/B7zPSj0slv

— Goldman Sachs (@GoldmanSachs) August 19, 2026

Tom Campbell, head of Americas ETF distribution in Goldman Sachs global banking & markets, said in the report that some of the most advanced active management strategies in the markets are now expressed in the ETF wrapper. He added: “These range from levered funds to innovative fixed income offerings to structured derivatives.”

Campbell argued that innovation is contributing to record flows. In 2025 more than 1,100 new ETFs were launched and Goldman Sachs expects there will be more than 6,000 listed ETFs in the U.S. by the end of 2026, more than he number of single stocks. He said institutional investors are using a broad range of ETFs to build broader, multi-asset portfolios, and this trend is rapidly expanding.

However, innovation is not always positive. For example, data provider Morningstar  highlighted in a report that leveraged and inverse single-stock ETFs were first approved for U.S. trading in 2022.

“Single-stock ETFs have mostly been as disastrous for investors as they have been lucrative for their asset managers,” added Morningstar. “The median single-stock ETF has lost 38% while having paid over $6bn in management fees on them over the past four years ended July 2026.”

ETFGI, the independent research and consultancy firm said in a report that ETFs in the U.S. gathered a record $1.2 trillion in net inflows by the end of July this year.

Active ETFs

More than one third, 35%, of the flow this year has been in active funds, which comprise approximately 13% of the $16.1 trillion in assets under management in U.S.-listed ETFs according to Goldman Sachs.

Jackson Isaacs, head of Americas equity ETF trading in global banking & markets, said in the report: “Active is really driving a lot of growth in the ETF market and it’s definitely noticeable on the trading desk.”

Isaacs added that the ability to trade themes has increased ETF activity, especially semiconductors and software, as investors are attracted by the product’s listed equity format and its ease of use. Semiconductor ETFs attracted a recorded monthly inflow of more than $19bn in June, according to Goldman Sachs. In contrast, software ETFs recorded outflows of roughly $1.9bn, one of the largest monthly redemptions since 2018.

ETFGI said U.S active ETFs and ETPs gathered year-to-date inflows of $466.8bn by the end of July, well above the $263bn in the same period in 2025.

“Year-to-date inflows into equity, fixed income, and active ETFs and ETPs have all surpassed the levels recorded at the end of July 2025, highlighting continued strong investor demand for these segments of the U.S. ETF market,” added ETFGI.

Trading volumes

Goldman Sachs’ ETF trading volumes are running 50% higher than 2025, which was a record year, according to Isaacs. Campbell said the ETF industry is averaging roughly $320bn in notional trading volume per day.

“I would add that in times of market stress, ETFs are accounting for 40% of the tape at times,” said Campbell. “Investors are clearly gravitating to these products from a hedging and rebalancing standpoint, and this is strongest during times of heightened volatility.”