ETF Inflows Set a Record in July. The Fee Mix Moved at the Same Time.

ETFs attracted a record $193 billion in July, bringing year-to-date inflows to $1.23 trillion. However, the composition of these inflows is shifting significantly toward actively managed ETFs with higher expense ratios, benefiting Wall Street firms like BlackRock while potentially costing individual investors more. Active ETFs saw a 75% year-over-year increase in inflows to $466 billion through the first seven months of 2026, now representing 42% of all ETF inflows.