Goldman Sachs Confirms ETFs On Track to Cross $2 Trillion Milestone

• Actively managed ETFs are capturing over 35% of year-to-date inflows despite representing only 13% of the $16.1 trillion in total U.S. ETF assets under management
• The total number of U.S.-listed ETFs is approaching 6,000 offerings, exceeding the number of domestic single stocks available, while daily trading volume has expanded 50% year-over-year to approximately $320 billion
• AI-related demand is driving significant flows, with semiconductor ETFs recording their largest aggregate monthly inflows of over $19 billion in June, while software ETFs saw outflows of roughly $1.9 billion

Goldman Sachs Confirms ETFs On Track to Cross $2 Trillion Milestone

Summary

Goldman Sachs Global Banking & Markets confirms U.S.-listed ETFs are projected to reach $2 trillion in net inflows for 2026, representing a 40% increase over 2025 levels. Investors have already poured over $1 trillion into ETFs during the first half of this year alone.

Active Management Surge: Actively managed ETFs are driving unprecedented growth, capturing more than 35% of year-to-date inflows despite representing only 13% of the total $16.1 trillion in U.S. ETF assets under management. Both retail and institutional investors are increasingly utilizing active ETF strategies for benchmark outperformance, tactical rebalancing, and access to sophisticated derivative and income-oriented structures.

Portfolio Customization: ETF assets tied to third-party model portfolios surged 46% over the past 12 months, reaching $950 billion, particularly among wealth managers and registered investment advisors. Rapid product innovation is pushing the total number of U.S.-listed ETFs toward 6,000 offerings—exceeding the number of domestic single stocks available.

AI-Driven Demand: Artificial intelligence adoption continues fueling ETF growth, particularly in semiconductors and software. Semiconductor ETFs recorded their largest monthly inflows in June at over $19 billion, while software ETFs experienced approximately $1.9 billion in outflows—one of the largest monthly redemptions since 2018.

Trading Volume: Daily ETF trading activity now averages approximately $320 billion in notional volume, a 50% year-over-year increase. During market stress periods, ETFs frequently account for up to 40% of total market volume, demonstrating their role as essential hedging and rebalancing tools.

The combination of intra-day liquidity, tax efficiency, and rapid innovation solidifies ETFs as a critical investment vehicle in modern portfolios.