US, Canadian ETFs See Record $119B Inflows Driven by Bonds, Equities

In August 2025, U.S.-listed ETFs experienced record inflows with over $118 billion invested, making it the second-strongest month of the year. Bond ETFs led the inflows, setting new records driven by short and intermediate-term bonds favored amid Federal Reserve rate cut signals, with $49 billion flowing into bonds including $17 billion into active bond ETFs and $13 billion into investment-grade corporate bonds. U.S. equity ETFs also saw substantial inflows totaling around $44 billion, heavily supported by large-cap ETFs such as Vanguard's S&P 500 ETF (VOO) and iShares Core S&P 500 ETF (IVV), which together attracted over $16 billion. Small-cap stock ETFs reversed prior outflows, buoyed by expectations of cheaper financing following Fed Chair Jerome Powell's rate cut comments. Additionally, thematic ETFs in Robotics & AI and Future Security gathered significant interest, while gold ETFs saw a $4 billion inflow as prices approached historical highs. Canadian ETFs also reported strong inflows of $7.4 billion, nearing their annual record with solid contributions from fixed-income and international equity ETFs despite some outflows in Canadian equity sectors.