``` Over the past two years, the scale has almost doubled, and US ETFs are "red-hot." ```

``` Over the past two years, the scale has almost doubled, and US ETFs are "red-hot." ```

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The U.S. ETF industry is experiencing an unprecedented acceleration in expansion. Three core metrics—asset size, capital inflows, and trading volume—are all breaking or approaching historical records in 2026, bringing the industry into a state of full-speed operation.

According to the latest assessment by Goldman Sachs ETF business head Chris Lucas, net inflows into U.S.-listed ETFs have surpassed $1 trillion so far this year. The total net issuance for the year is expected to exceed $2 trillion, breaking the 2025 record by more than 33%. Meanwhile, ETF total trading volume in the first half of the year exceeded $40 trillion, soaring 50% compared to the same period in 2025.

Behind the continuous inflow of funds, U.S. large-cap tech stocks, semiconductors/AI, emerging markets and Korea themes, as well as actively managed ETFs, constitute the main drivers in this round of growth. Actively managed ETFs have attracted about $400 billion in capital so far this year, accounting for roughly 40% of the industry’s total inflow—about three times their market share in assets.

Asset size approaching $16 trillion, nearly doubling in two years

Total assets of U.S.-listed ETFs have surpassed $15.6 trillion, nearly doubling over the past two years. Goldman Sachs believes that with current momentum, reaching $17 trillion by year-end is “within easy reach.”

This growth rate is unprecedented in industry history. The rapid expansion is driven by both capital inflows and asset price appreciation, forming a positive feedback loop that propels the industry steadily upward.

This year, ETF industry inflows are not only large in scale but also highly persistent. In June, monthly net inflows reached $193 billion, the second-highest single-month inflow in Goldman Sachs’ dataset.

More noteworthy is that this near-record monthly performance has become the norm. According to Goldman Sachs, the ETF industry experienced its five largest months of inflows in history in the last seven months—a rare concentration.

From the perspective of capital flows, actively managed ETFs performed especially well. Actively managed ETFs attracted about $400 billion in inflows this year, nearly 40% of the industry’s total inflows, while their asset size is only about 13% of the total. The rise of concentrated thematic ETFs is seen as a major new trend for 2026, continuing the logic of 2024’s spot cryptocurrency ETFs opening new market channels.

Trading volume surges 50%, leveraged ETFs as biggest variable

The ETF ecosystem operated “at full speed” in the first half of the year. Average daily trading volume reached $325 billion, and June’s cumulative monthly trading volume hit $7 trillion, also the second highest in history.

Leveraged ETFs are the main driver behind the surge in trading volume. In June, leveraged ETF nominal trading volume set a monthly record at $1.1 trillion, up more than 50% from the same period in 2025. If adjusted for leverage, using 3x leveraged products as a benchmark, leveraged ETFs generated a total exposure of close to $3 trillion in June, accounting for about 40% of all U.S.-listed ETF nominal trading volume that month.

Currently, leveraged ETFs manage about $175 billion in assets, but their actual total exposure exceeds $430 billion. The multiplier effect between the two highlights the liquidity amplification effect these products have on the overall market.

Accelerating trading volume is equally significant in global equity markets. Mining ETFs have already surpassed their total trading volume for all of 2025; the two largest emerging market ETFs—EEM and IEMG—are also close to matching last year’s total trading volume.

ETF numbers exceed domestic listed companies, new product launches accelerating

The number of U.S.-listed ETFs has reached about 5,400, while domestic listed companies number about 4,000. The ETF “surpassing stocks in numbers” continues to expand. Over 770 new ETFs have launched so far this year, with 54% using derivative instruments and 33% classified as leveraged or inverse products.

Goldman Sachs expects the rapid expansion of derivative applications and concentrated thematic products to be the core industry trends for the second half of the year. With a large number of pending products coming online, the pace of new launches should remain strong.

DRAM surpasses EWY—storage thematic ETFs reshape landscape

The migration effect of capital brought by the rise of concentrated thematic ETFs is typically reflected in the storage chip theme. The storage chip-focused thematic ETF, DRAM, has officially surpassed the 26-year-old Korea ETF EWY in total asset size.

Despite EWY’s net asset value rising nearly 50% since April this year, it recorded net outflows of about $2 billion over the same period. Goldman Sachs notes that EWY and DRAM have about a 46% overlap in holdings, meaning EWY had served as an alternative tool for investors seeking exposure to international storage themes. When more precise thematic channels emerged, capital migrated rapidly and noticeably, clearly demonstrating the speed at which the industry landscape can shift following the introduction of new market access tools.

Risk Warning and DisclaimerThe market has risks; investment requires caution. This article does not constitute personal investment advice and does not take into account individual users’ specific investment objectives, financial situation, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article fit their particular circumstances. Investing based on this article is at your own risk and responsibility. ```