AUM, flows and more

• ETF flows totaled over $188Bn for the month, and U.S. ETF assets were stagnant at $15.8Tn.
• U.S. large caps ($36.1Bn) and technology ($20.1Bn) led flows. Large value ($9.6Bn) led large growth ($7.7Bn) again.
• Fixed income ETFs eclipsed $50bn in flows, driven largely by Ultrashort ($12.5bn) and Intermediate ($6.7bn).

Active spotlight

• Flows totaled $52bn for the month. This year, about 37% of ETF flows have gone into active strategies.
• 125 active ETFs were launched in July, accounting for 88% of all ETF launches in the month.

The impact of rate cycles on ETF flows

• Rates are back in focus, and ETF flows highlight where investors are placing their duration bets. With inflation still above the Fed’s 2% target and the Fed on hold in July, positioning continues to drive demand.
• This year, ultrashort bond ETFs have taken in $72.1Bn, while intermediate-duration strategies have also been clear winners, drawing roughly $80Bn across core and core-plus. Long-duration ETFs saw little interest in the first half (about $2Bn), but they posted their best month of the year recently, with more than $4Bn in inflows.
• Overall, flows still reflect sticky inflation, heavy Treasury issuance, and long-end volatility, but investors may be starting to revisit duration.

Guide to ETFs featured slide of the month (slide 34)

U.S. ETF assets under management (AUM)

Weekly U.S. ETF exchange volume - Trailing 3 months

U.S. ETF flows ($Bn) — Trailing 12 months

Monthly Sector ETF Flows ($Mn):