Active Exchange Traded Funds (ETFs) have reached a record $2.59 trillion in assets globally by the end of July 2026, surpassing the previous high of $2.56 trillion in June 2026. This represents a 35.6% increase year-to-date from $1.91 trillion at the end of 2025. The industry recorded $89.58 billion in net inflows during July 2026, contributing to a record $590.46 billion in year-to-date net inflows. This substantial growth highlights a sustained investor demand for active strategies, with 76 consecutive months of net inflows into actively managed ETFs.
Dimensional Fund Advisors and JPMorgan Asset Management are leading providers in the active ETF space, each managing approximately $309 billion in assets and holding an 11.9% market share as of July 31, 2026. JPMorgan has attracted the most new assets year-to-date, with $52.5 billion, closely followed by iShares with $51.8 billion. These three providers collectively manage $795 billion in active ETF assets and have gathered $138.8 billion in net new assets in 2026, accounting for nearly a quarter of the industry's record year-to-date inflows.
Investor interest is particularly strong in fixed income, with active fixed income ETFs gathering $25.31 billion in July and $178.75 billion year-to-date, exceeding the $123.80 billion from the same period in 2025. This surge is partly due to the growing U.S. government debt, which is prompting advisors to seek active ETFs that can adjust holdings as market conditions change, rather than relying on index funds that may become heavily weighted towards government debt. Equity-focused active ETFs also saw significant inflows, with $56.89 billion in July and $355.77 billion year-to-date.
While active funds have shown short-term gains, with over 40% outperforming passive rivals over the one-year period ending June 2026, only 25% of active strategies survived and beat passive counterparts over the past decade. However, fixed income stands out, with 45% of active bond funds outperforming passive peers over 10 years, the highest rate among all broad asset classes. Fees continue to be a significant factor, as active funds in the cheapest cost quintile beat passive peers at a 33% rate over 10 years, compared to just 20% for the most expensive quintile. This suggests that investors are increasingly favoring lower-cost, higher-quality active strategies, particularly in areas like fixed income, real estate, and emerging markets.
