ETF and Fund Flows: Where the Money Is Going — 2026-09-18
Global equity funds faced significant outflows in the week ending September 9, driven by rising oil prices and inflation fears, while money market funds saw a record-breaking surge in assets. In Europe, ETF assets approached $4 trillion with record year-to-date inflows, and thematic ETFs remained flat as gold miner outflows offset AI inflows.
ETF and Fund Flows: Where the Money Is Going — 2026-09-18
Top developments
Global Equity Outflows Hit Nine-Month High
Global equity funds recorded $15.52 billion in outflows during the week through September 9, marking a nine-month high. The surge was primarily fueled by escalating U.S.-Iran tensions that pushed oil prices higher, stoking inflation concerns and prompting investors to rotate into safer assets. This shift underscores a broader risk-off sentiment across global markets.
European ETF Assets Approach $4 Trillion Milestone
The European ETF industry reached a new milestone with total assets hitting US$3.97 trillion at the end of August 2026. Year-to-date net inflows also set a record at US$381.4 billion, indicating sustained strong investor demand despite global geopolitical uncertainties. This growth highlights Europe's increasing maturity as an ETF market, with both retail and institutional participation expanding.
Thematic ETFs Stall as Gold Miners Offset AI Gains
The thematic ETF channel, which includes 487 funds managing $396.0 billion, experienced a minor net outflow of $74 million for the week. This pause in asset gathering occurred as significant outflows from gold miner ETFs effectively neutralized the inflows into AI-focused thematic funds. The data suggests investors are rotating within the thematic space rather than exiting it entirely.
Crypto ETFs See Ten-Month High Inflows
Crypto ETFs attracted $6.8 billion over six consecutive weeks, reaching a ten-month high for weekly inflows. BlackRock’s IBIT alone captured $3.4 billion, accounting for roughly half of the total capital entering these funds during the period. This surge indicates renewed institutional confidence in digital assets despite broader equity market volatility.
Local view
Japan: Index Funds Surpass Active Funds for First Time
In Japan, index-linked investment trusts have surpassed active funds in terms of share of equity investment trust assets for the first time, largely driven by the popularity of "Orkan" (eMAXIS Slim All Country) funds. August data shows ¥396.1 billion flowed into Orkan funds, maintaining their dominance in retail portfolios. This structural shift marks a significant change in Japanese retail investment behavior toward passive strategies.
Korea: Parking ETFs Attract 1.5 Trillion Won in One Week
Amid a sideways trend in the Korean domestic stock market, investors moved approximately 1.5 trillion won into "parking type" ETFs in just one week. These short-term financial product ETFs allow investors to earn interest while waiting for better entry points, benefiting from rising market interest rates. This trend reflects a cautious stance among Korean retail investors who prefer liquidity and yield over equity exposure.
Context & numbers
- Money Market Funds: Total money market fund assets decreased by $6.10 billion to $7.97 trillion for the week ended September 9, according to ICI data. Government funds saw a decrease of $7.99 billion, while prime funds saw different movements.
- Long-Term Flows: Total estimated inflows to long-term mutual funds and ETFs were $8.12 billion for the week ended September 2, 2026. This contrasts with estimated mutual fund outflows of $25.11 billion, highlighting the divergence between ETF and mutual fund performance.
- European ETF Growth: European ETFs added USD 111 billion in net new assets across July and August, with equities dominating the inflows.
On the radar
- Bond ETF Liquidations: Several maturity-based bond ETFs are scheduled for liquidation starting mid-September, with DB Asset Management's product being one of the first. Approximately 1.7 trillion won in assets is tied up in five products facing liquidation by year-end, posing a challenge for customer retention.
- Foreign Capital Flows in Korea: Foreign securities investment funds in Korea saw a net outflow of $4.5 billion in August, though equity funds returned to a net inflow. This data point from the Bank of Korea may influence short-term sentiment in Asian markets.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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