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 NumbersThe 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. |
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~35%
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~58%
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ACTIVE DOMINATES NEW OFFERINGS
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Source: Bloomberg
Source: Bloomberg
Source: Bloomberg
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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.
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