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

U.S.-listed ETFs are projected to reach $2 trillion in net inflows in 2026, which is a 40% jump over 2025 levels. Actively managed strategies are leading this expansion by capturing over 35% of year-to-date inflows despite representing just 13% of total industry assets. This surge is accompanied by rapid product innovation and portfolio customization, pushing the total number of U.S. ETFs toward 6,000 offerings while daily trading volume expands by 50% year-over-year.

Actively managed ETFs are a prime catalyst behind this record growth. According to Goldman Sachs, actively managed funds currently capture more than 35% of net year-to-date inflows, despite accounting for roughly 13% of the total $16.1 trillion in U.S. ETF assets under management. Along with retail investors, institutional investors are increasingly leaning on active ETF strategies to capture benchmark outperformance, execute tactical rebalancing, and access sophisticated derivative or income-oriented structures.

Simultaneously, Goldman Sachs also noted that demand for portfolio customization is propelling two distinct trends. First, ETF assets tied to ready-made third-party model portfolios jumped 46% over the last 12 months to reach $950 billion. This reflects high adoption among wealth managers and registered investment advisors. Second, rapid product innovation has accelerated the market, putting the total number of U.S.-listed ETFs on track to surpass 6,000 offerings. To punctuate this level of growth, it's notable to mention that this exceeds the number of single stocks available in the domestic market.

The persistent expansion of artificial intelligence (AI) continues to drive elevated ETF demand as the technology sees more widespread adoption. Specific areas of note that are seeing increased trading activity are semiconductor and software ETFs. To this point, South Korea has witnessed increased activity surrounding semiconductor ETFs amid the AI buildout frenzy, which is also prevalent here in the U.S.

Campbell also added that daily trading activity reflects this shift. The ETF industry is averaging approximately $320 billion in daily notional volume, which constitutes a 50% increase over 2025 levels. During periods of heightened equity market stress, ETFs frequently account fo...