ETF flows in the first half of the year surpass $1 trillion, hitting record pace, says JPMorgan

U.S. ETF flows surpassed $1 trillion, hitting the fastest pace on record, in the first half of 2026, according to JP Morgan Asset Management.

The asset management division of JPMorgan Chase, which helped drive the bank's record second-quarter profit with $21.2 billion in net income, also notes that SMA conversions have accelerated, further pushing ETFs into the workflows of financial advisors.

In the U.S. ETF Midyear Report, which was released earlier this month, JP Morgan Asset Management explains that 2026 flows are on track to be 35% to 40% higher than in 2025.

Jon Maier, chief ETF strategist at JP Morgan Asset Management explains that one ETF even surpassed the $1 trillion AUM threshold. This proves that the market can handle funds of such scale, he writes in the report. “These stats reinforce that ETFs have become the default implementation vehicle for retail and institutional portfolios alike, utilized for everything from strategic exposures to tactical adjustments,” Maier added.

JP Morgan Asset Management expects that volatility, market concentration, and diversification will keep driving ETF usage in the second half of 2026, with active strategies accounting for a larger share of flows. Increasingly, ETF growth is being fueled by the migration of assets from legacy vehicles into the ETF wrapper, the report said, not just organic inflows. “After early momentum from mutual fund-to-ETF conversions, Separately Managed Account (SMA) conversions have accelerated, positioning ETFs as a preferred ‘operating system’ for implementation and advisor workflows,” said Maier.

Converting an SMA to an ETF can boost tax efficiency, and also liquidity.

Separately, JP Morgan Asset Management released its U.S. Guide to ETFs Monday. The guide shows that flows were led by the technology, industrials, and energy sectors this year, strongly correlating with overall performance. Trailing 12-month flows show that technology is more than double any other sector.

The research also underscores the ongoing growth in active ETFs. In 2025, active ETF flows were over $450 billion, surpassing the prior year’s record of about $300 billion. Active ETFs have taken in about 38% of all flows into ETFs in 2026.

The guide also notes that, while active fixed income has been a key contributor to active ETF flows since 2019, derivative income AUM has grown from near $0 in 2023 to over $200 billion today.