U.S.-listed ETFs closed September with $16.4 trillion in total assets under management, which is relatively flat compared to August month end. Monthly net fund flows continued their decline with a significant drop in September: just $140.9 billion in new assets added. This is down 29.6% from $182.6 billion in new assets in August. Nevertheless, the year-to-date fund flow set a new record high at more than $1.5 trillion.
All asset classes experienced positive net flows in September. Equities and fixed income roughly split the majority of monthly flows at 46.8% and 41.4%, respectively, and the remaining 11.8% flowed into “other” asset classes (currency, alternatives, and asset allocation ETFs).
The number of new ETFs that came to market in September slowed to 106. The year-to-date total is 1,129 new ETFs.
U.S. listed ETF assets under management (in millions) and fund flows as of September 30, 2026:
Source: FactSet
Source: FactSet
Looking at September ETF flows by asset class:
Equities: The global ex-U.S. total market segment received most of the new assets in September, almost double what was put towards U.S. large-cap funds. At the opposite end, money was pulled from global semiconductors.
Fixed income: U.S. government ultra-short term continued to gather the most fund flows. Leading the outflows were U.S. corporate bonds, U.S. government, mortgage-backed investment grade, and emerging markets government.
Alternatives: Hedge fund strategies and U.S. downside hedge S&P 500 lead fund flows. Money was pulled from U.S. volatility products.
It is interesting to see the Utilities, Financials, and Communication Services sectors lead fund flows in September, while Energy, Industrials, Consumer Staples, and Materials experienced outflows. This suggests investors may be prioritizing capital preservation, income generation, and reducing cyclical risk over aggressive growth.
Source: FactSet
Source: FactSet. Within the alternatives space are structured outcome ETFs.
Launch details:
September saw 106 new ETFs begin trading, with 75% of them actively managed. The bulk of total new ETFs provide equity exposure, alternative investments, and structured outcome strategies.
State Street Investment Management launched the largest ETF with the State Street SPDR UC Investments 90/10 Endowment Strategy Index ETF (UCBG), backed by a $2.5 billion investment from the University of California.
Main Management launched the Main Active Rotation ETF (SECA) through a 351 exchange.
Tidal Financial Group launched 12 new ETFs under 7 different brands.
Four mutual funds were converted to ETFs: Calamos Timpani Active SMID Growth ETF (CTAG), Mast HedgeIndex Managed Futures Strategy ETF (HXF), Putnam Focused U.S. Research ETF (PFRX), and TCW Securitized Income ETF (TIZE).
BMO launched four ETNs with leveraged exposure to sectors.
As mentioned earlier, 75% of the ETFs that came to market in September are actively managed. However, that does not necessarily reflect an investor preference for active. In September, 60% of new assets were directed into passively managed ETFs. The lean toward passive management is consistent with year-to-date flows.
Source: FactSet
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