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 second quarter of 2026 reinforced the ETF industry’s exceptional momentum, with US-listed ETFs surpassing $1 trillion in year-to-date net inflows and remaining on pace for another record-setting year. Active ETFs continued to be the defining growth story, capturing nearly 40% of industry inflows despite representing only about 12% of ETF assets. Investors increasingly favored active implementation with flows equaling or exceeding passive ETFs in strategies involved in fixed income, commodities, international equity, municipal bonds, and sector equity in Q2 2026. Markets recovered quickly from April’s volatility, supported by resilient corporate earnings, AI-driven growth, mega-cap technology leadership, and improving investor sentiment. International and emerging market ETFs also experienced robust demand. At the same time, rapid product innovation and the surge in more complex strategies prompted increased regulatory attention. The SEC’s review of “Novel ETFs” comes after roughly $82 billion was added to leveraged ETFs this quarter, emphasizing the industry’s continued evolution and the growing focus on balancing innovation with investor protection. |
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~28%
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~64%
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OFFERINGS EXPAND
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Source: Bloomberg
Source: Bloomberg
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.