Global inflows into exchange-traded funds (ETFs) hit a record $1.07trn in the first five months of the year with active ETFs capturing 38.5% of new money, according to data provider ETFGI.
Building on last year’s momentum, active ETFs drew in $411.75bn from January to May, almost double the $220.5bn gathered in the same period last year.
Among providers, Vanguard was the “standout” winner taking in a quarter of the year-to-date inflows.
The Pennsylvania-based index funds group saw its flagship S&P 500 ETF (VOO) become the first exchange-traded fund to surpass $1trn assets earlier this month.
ETGI data showed VOO took in nearly $18.7bn last month to lift it to $994.4bn, shortly before it tipped over the historic $1trn mark. Year-to-date inflows into the product were $66.4bn up to 31 May, helping Vanguard take in $272.6bn to its overall ETF range.
That accounted for 25.6% of the total flows into ETFs globally and puts Vanguard’s total ETF assets at $4.94trn, according to LSEG Lipper, closing the gap with leader iShares which has $6.34trn or 27.5% of the market, according to the ETFGI report.
“This positions Vanguard as the primary driver of industry growth in 2026, continuing to gain share through its low-cost, core exposures,” said Deborah Fuhr, managing partner and founder of ETFGI.
Total global assets in ETFs rose to over $23trn at the end of May, up from the previous high of $21.91trn in April, as accelerating inflows combined with rallying stock markets.
Developed markets including the US gained 5.2% last month and were up 15.3% this year in dollar terms, while emerging markets rose 3.8% in May and 11.4% year to date as the boom in artificial intelligence (AI) spending buoyed many technology stocks.
ETFs attracted $216bn in May with equity funds gathering $56.5bn to take the year’s total so far to $418.9bn, up from $329,8bn a year ago.
Fixed income ETFs drew in $62.2bn in May taking year-to-date inflows to $218.4bn, also above the $141.1bn gathered this time last year.
Our view
David Batchelor, senior analyst at QuotedData, said: “Active ETFs are no longer a niche growth story – they are becoming one of the main engines of ETF industry expansion. Taking almost two-fifths of global ETF inflows in the first five months of the year shows how quickly investor behaviour is changing, particularly as large asset managers use the ETF wrapper to deliver strategies that would previously have sat in mutual funds. For European investors, the key point is not just the headline growth figure, but the broadening choice it implies. As more active managers enter the market, competition should improve access, fees and transparency, but it also highlights the need for clearer fund comparison and due diligence, because “active ETF” now covers everything from enhanced index strategies to genuinely high-conviction portfolios”.
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