The State of US ETFs 2026

Morningstar

Zachary Evens, Daniel Sotiroff

Research

30 Pages

Morningstar examines how the US ETF market has evolved from broad passive funds into a $15.8 trillion ecosystem spanning active, derivative-based, and niche strategies. ETFs totaled 5,401 by June 2026, active products reached 12.5% of assets, and increasingly complex launches are pushing the wrapper beyond traditional indexing.

Key Takeaways

ETF market compounds: US-domiciled ETFs reached $15.8 trillion across 5,401 funds by June 2026, after more than 1,000 new ETFs launched in 2025.
Active catches up: Active ETFs reached 12.5% of assets by June 2026 and now outnumber passive ETFs, though the 20 largest remain index-based.
Complexity surges: Trading-leveraged equity ETFs logged 218 launches in first-half 2026, versus 12 in full-year 2021, highlighting the shift toward niche risk.
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