Active Strategies & AI Hardware Take Center Stage in September ETF Launches

The ETF arena continues to evolve rapidly, driven by mutual fund conversions, targeted semiconductor supply chain plays, and expanding active management offerings across global equity and income allocations.Key Takeaways U.S. ETFs gathered $151 billion in September 2026, propelling year-to-date inflows to a record-breaking $1.54 trillion and total industry AUM to $16.3 trillion, despite a notable rotation away from domestic equities into active, fixed income, and international strategies. Issuers like Goldman Sachs, Janus Henderson, and MFS are broadening active equity and fixed income lineups, while new thematic products target AI hardware supply chains. State Street’s recent product launch shattered records, gathering $2.5 billion in initial assets and underscoring strong institutional demand for targeted ETF structures. September ETF Market Dynamics: Shifts in Asset FlowsThe U.S. ETF industry continued to chug along in September 2026, pulling in nearly $141 billion in net flows, reflecting a decrease from August’s $183 billion in net flows. This monthly haul pushed total year-to-date inflows to $1.5 trillion, surpassing the previous full-year record set in 2025 with three months still remaining. Total ETF assets under management amounted to $16.4 trillion by month-end, roughly flat compared to the beginning of the month. However, beneath the headline flow numbers sat a clear shift in advisor allocation preferences. U.S. equity ETF inflows slowed as advisors rotated capital toward international equities and ultrashort fixed income. Active ETFs dominated product launches last month, accounting for 75% of the 106 new ETFs entering the market. However, advisors still directed 60% of new assets into passive ETFs, suggesting they still prefer to build portfolios with passive building blocks.Institutional Scale & Record-Breaking LaunchesThe ETF industry reached a historic milestone as the State Street SPDR UC Investments 90/10 Endowment Strategy Index ETF (UCBG) garnered a record $2.5 billion at launch. This record influx underscores how financial advisors are utilizing established issuer scale to implement core asset allocation shifts in volatile market environments. Concurrently, structural shifts from legacy mutual fund vehicles into ETF wrappers are accelerating. Northern Trust recently announced plans to convert $33 billion in mutual fund assets directly into ETFs. This conversion reflects growing advisor demand for improved intraday liquidity, greater portfolio transparency, and overall tax efficiency.Target Hardware & Semiconductor Supply ChainsAs enthusiasm for artificial intelligence (AI) continues to shift from software applications toward physical infrastructure, targeted thematic funds are gaining traction. A prominent example is the launch of the REX AI Chipmaking ETF (CHIP), which tracks the VettaFi AI Chipmaking Index. The index is designed to capture the specialized machinery behind AI chipmaking and semiconductor fabrication. By targeting critical capital equipment providers rather than general tech conglomerates, the fund offers advisors a precise instrument for physical infrastructure exposure.September ETF Launches See Active Management Expand in Global Equities & IncomeActive management strategies continue to capture market share across international equity and fixed income allocations. Goldman Sachs launched two emerging international equities ETFs aiming to capture mispriced alpha opportunities across non-U.S. markets. The new funds are the Goldman Sachs Data Enhanced Emerging Markets Equity ETF (GEMQ) and the Goldman Sachs Data Enhanced International Equity ETF (GIEQ). Similarly, Janus Henderson debuted the Janus Henderson International Core Alpha ETF (JINT), expanding options for advisors seeking systematic, fundamental stock selection in global benchmarks. Fixed income portfolios are also seeing more active strategies enter the market. MFS expanded its active fixed income suite with two new income-focused ETFs aimed at managing yield curve duration and credit risk in a changing interest rate regime: MFS Active Short Duration Income ETF (MFSD) and MFS Active Short Muni Bond ETF (MFSX). Originally published on Advisor Perspectives. For more news, information, and analysis, visit the Thematic Investing Content Hub. VettaFi LLC (“VettaFi”) is the index provider for CHIP for which it receives an index licensing fee. However, CHIP is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of CHIP.