ETFs Attract Record 1193 Billion Dollars in August, Led by Equity and Bond Funds

In August, American-listed exchange-traded funds (ETFs) attracted a record-breaking 1193 billion dollars in net inflows, surpassing the previous month's 1159 billion dollars and setting a new high for the year. This influx of capital underscores the growing investor confidence in ETFs as a preferred investment vehicle.

Year-to-date, ETFs have accumulated a net inflow of 7926 billion dollars, indicating a strong trend of capital flowing into these funds. If this trend continues, ETFs are on track to surpass the 1000 billion dollar mark for the second consecutive year. This development highlights the robust demand for ETFs and their role in the broader investment landscape.

American equity ETFs led the market with a net inflow of 465 billion dollars, followed by American fixed-income ETFs with 402 billion dollars. International equity and fixed-income ETFs attracted 170 billion dollars and 83 billion dollars, respectively. The strong performance of equity ETFs can be attributed to the historical highs reached by the U.S. stock market in August.

Vanguard's S&P 500 ETF (VOO) has seen its year-to-date gains expand to 11.4%, with a net inflow of 92 billion dollars in August alone. This brings its total net inflow since 2025 to 818 billion dollars, making it the top-performing ETF. Similarly, iShares' S&P 500 ETF (IVV) recorded a net inflow of 79 billion dollars, placing it second in the rankings.

Bond ETFs also saw significant inflows, with Vanguard's Short-Term Corporate Bond ETF (VCSH) and iShares' 0-3 Month Treasury Bond ETF (SGOV) among the top performers. The Federal Reserve's hint at a potential rate cut in September drove up short-term bond prices, while the narrowing of investment-grade bond spreads to a 27-year low boosted inflows into the iShares iBoxx Investment Grade Corporate Bond ETF (LQD), which saw a net inflow of nearly 30 billion dollars.

Alternative assets also attracted substantial investment. The SPDR Gold ETF (GLD) saw a net inflow of 26 billion dollars as gold prices approached a historical high of 3500 dollars per ounce. Additionally, the iShares Ethereum ETF (ETHA) benefited from the cryptocurrency's price surge, recording a net inflow of 34 billion dollars.