Q3 2026
2 min

MFS ETF Pulse - Q3 2026

Record Pace Continues as Active Fixed Income Takes the Lead

MFS ETF Capital Markets

Jamie Harrison

Head of ETF Capital Markets

 

Marcello Leo

ETF Capital Market Analyst

 

Ainslie Denman

ETF Capital Market Analyst

Active ETFs by the Numbers

The ETF industry maintained record-breaking momentum in Q3 2026, with inflows surpassing $1.5 trillion through September, eclipsing 2025’s full-year record. With Q4 historically the strongest quarter, annual inflows could reach $2.3 trillion, with active ETFs capturing nearly 40%.

Fixed income emerged as a key growth driver, as rate volatility and shifting yield curves accelerated demand for government, municipal, and short-duration ETFs. September’s rate movements created significant tax-loss harvesting opportunities, with municipal mutual funds experiencing $2.7 billion in outflows while ETFs attracted $2.1 billion. Active fixed income strategies gained traction as investors sought flexibility in managing duration, credit risk, and sector allocations. Looking ahead, tax-loss harvesting, portfolio rebalancing, and sustained demand for active strategies position the industry for a strong year-end finish.

 


ASSETS REACH NEW HEIGHTS

$2.18 T
 

End of Q3 2026 AUM for Active ETFs

61%
 

Increase from Q3 2025



INFLOWS STAY STRONG


$178 B
 

Q3 2026 Active ETF Net Inflows
 

~35%
 

Into Fixed Income

~58%
 

Into Equities



ACTIVE DOMINATES NEW OFFERINGS


274
 

Active ETFs Launched In Q3 2026


82%
 

of total ETFs launched in 2026

 

Source: Bloomberg

 

 

 

 

Bar chart depicting US Active ETF Flows from 2016 to 2026 YTD

        Source: Bloomberg

Bar chart depicting Passive vs Active ETF Momentum

        Source: Bloomberg

The views expressed are those of MFS, and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any MFS investment product.  

Exchange-Traded Funds (ETFs) trade like stocks, are subject to investment risk, and will fluctuate in market value. Shares of ETFs are bought and sold at market price, not NAV, and are not individually redeemed from the fund. The market price at the time of sale may be higher or lower than the fund’s NAV, and any applicable brokerage commissions will reduce returns. There can be no guarantee that an active market for the funds will develop or be maintained. Actively Managed ETFs differ from traditional ETFs in that they do not seek to replicate or to track a specific index. As such, the ability of an Actively Managed ETF to achieve its objective will depend on the effectiveness of the fund’s Portfolio Manager. Please see the prospectus for further information on these and other risk considerations.

Before investing, consider the funds’ investment objectives, risks, charges, and expenses. For a prospectus, or summary prospectus, containing this and other information, contact MFS or view online at mfs.com. Please read it carefully.

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