The global ETF industry enjoyed strong inflows over the course of May 2026 in an environment in which global financial markets were shaped by a delicate balance between geopolitical tensions, constrained fiscal policy, and diverging central bank strategies. Equity markets continued to advance, supported by solid earnings and technology‑driven growth, while bond markets remained more cautious, reflecting persistent inflation and higher borrowing costs.
The conflict in the Middle East remained the dominant driver throughout the month. Disruptions to shipping routes and energy supply kept oil prices elevated, pushing up inflation expectations across major economies. Bond markets reacted swiftly, with government borrowing costs rising sharply—particularly in the United States, where 10‑year Treasury yields reached around 4.6%. These elevated yields unsettled investors and reinforced expectations that monetary policy would stay tight for longer.
Toward the end of May, however, sentiment improved as negotiations between the United States and Iran showed tentative progress. Oil prices eased, helping to stabilize markets and support a recovery in risk appetite.
At the same time, monetary policy paths continued to diverge across major economies. The Federal Reserve held rates steady at 3.50%–3.75%, maintaining a cautious stance as inflation remained uncertain and growth held up. Policymakers signalled that further rate cuts were no longer guaranteed, shifting toward a more neutral, slightly hawkish outlook.
In the euro area, the ECB also left rates unchanged at 2.0%, but discussions increasingly focused on whether further tightening might be required. Inflation, particularly in services, remained persistent, while the energy shock complicated the disinflation process. This kept the ECB firmly in a cautious, data‑dependent mode.
Japan remained on a different path. The Bank of Japan, after beginning its policy normalization in late 2025, held rates steady despite inflation around 2.5%. Political pressure grew during May, highlighting tensions between monetary independence and fiscal priorities as the government pushed for continued economic support.
These differing approaches, a policy pause in the U.S., tightening bias in Europe, and gradual normalization in Japan added to volatility in global bond markets and currency movements.
Fiscal policy provided little support. Most advanced economies entered 2026 with stretched public finances, limiting their ability to cushion the impact of higher energy prices. Rising bond yields further increased borrowing costs, reinforcing fiscal constraints and making markets more sensitive to interest rate expectations.
Against this backdrop, equity markets delivered another strong month. Robust corporate earnings and continued investment in artificial intelligence drove gains. Improving geopolitical sentiment and falling oil prices late in the month also helped, as investors became more confident that central banks would avoid aggressive tightening.
Bond markets, however, remained cautious. Yields stayed elevated after sharp increases earlier in the year, reflecting both inflation concerns and continued government issuance. Although yields eased slightly toward month end, they continued to weigh on valuations and investor confidence.
Emerging markets stood out as relative outperformers. Equity markets in Asia benefited from strong earnings and their key role in global technology supply chains, particularly in semiconductors. Stabilizing geopolitical conditions also supported risk appetite. In bond markets, higher global yields created pressure, but easing commodity prices and more stable inflation expectations helped attract selective inflows.
From the perspective of the global ETF industry, the performance of the underlying markets led, in combination with the estimated net flows, to increasing assets under management (from $20,820.9 bn as of April 30, 2025, to $21,973.5 bn at the end of May 2026). At a closer look, the increase in assets under management of $1,152.6 bn for May was driven by the performance of the underlying markets (+$894.4 bn), while the estimated net inflows added $258.2 bn to the assets under management.
Assets Under Management by Asset Type
As for the overall structure of the global ETF industry, it was not surprising equity ETFs ($17,051.3 bn) held the majority of assets at the end of May, followed by bond ETFs ($3,437.5 bn), alternatives ETFs ($722.8 bn), commodities ETFs ($501.4 bn), money market ETFs ($143.3 bn), mixed-assets ETFs ($98.1 bn), and “other” ETFs ($19.6 bn).
Graph 1: Market Share, Assets Under Management in the Global ETF Industry by Asset Type, May 31, 2026
Source: LSEG Lipper
Since most major markets have risen further over the course of May, it is not surprising that the overall assets under management (AUM), as well as the AUM of all asset types with the exception of alternative and other ETFs, hit a new (month end) all-time high at the end of May.
ETF Flows by Asset Type
The inflows in the global ETF industry for May were driven by equity ETFs (+$168.0 bn), followed by bond ETFs (+$75.9 bn), alternatives ETFs (+$7.9 bn), mixed-assets ETFs (+$3.2 bn), money market ETFs (+$3.1 bn), and commodities ETFs (+$0.4 bn). On the other side of the table, “other” ETFs (-$0.3 bn) was the only asset type which faced outflows for the month.
Graph 2: Estimated Net Sales by Asset Type, May 1 – May 31, 2026 (USD Billions)
Source: LSEG Lipper
Given the market environment, it was not surprising to see that the estimated net inflows into ETFs were led by equity ETFs over the course of May. This might be seen as an indicator that ETF investors globally are in risk-on mode.
Assets Under Management by Lipper Global Classifications
In order to examine the global ETF industry in further detail, a review of the Lipper global classifications will lead to more insights on the structure and concentration of assets within the global ETF industry. At the end of May, the global ETF market was split into 305 different Lipper Global Classifications. The highest assets under management at the end of the month were held by ETFs classified as Equity U.S. ($7,739.7 bn), followed by Equity Global ex U.S. ($1,338.2 bn), Equity U.S. Small & Mid Cap ($1,162.0 bn), Equity Global ($1,002.2 bn), and Equity Japan ($902.1 bn). These five classifications accounted for 55.27% of the overall assets under management in the global ETF industry, while the 10 largest classifications by assets under management combined accounted for 69.76%.
Overall, 18 of the 305 Lipper classifications each accounted for more than 1% of assets under management. In total, these 18 classifications accounted for $17,589.2 bn, or 80.05%, of the overall assets under management.
Graph 3: Ten Largest Lipper Global Classifications by Assets Under Management, May 31, 2026 (USD Billions)
Source: LSEG Lipper
The Lipper classifications on the other side of the table showed some funds in the global ETF market are quite low in assets and their constituents may face the risk of being closed in the near future. They are obviously lacking investor interest and might, therefore, not be profitable for their respective fund promoters.
Graph 4: Ten Smallest Lipper Global Classifications by Assets Under Management, May 31, 2026 (USD Billions)
Source: LSEG Lipper
ETF Flows by Lipper Global Classifications
The net inflows of the 10 best-selling Lipper classifications accounted for $204.5 bn. In line with the overall sales trend for May, equity peer groups (+$159.9 bn) gathered the majority of flows by asset type on the table of the 10 best-selling classifications by estimated net inflows for the month. That said, compared with the concentration of flows for the single regions or domiciles, the 10 best-selling Lipper classifications are more diversified at the global level. This flow pattern is expected, as investors from different regions may have different preferences when it comes to their investments. Nevertheless, the table of the 10 best-selling Lipper classifications is heavily impacted by the estimated net flows from the U.S.
Given the overall fund flow trend in the global ETF industry and the dominance of the U.S. as the leading market for ETFs and largest stock market in the world, it was not surprising that Equity U.S. (+$91.1 bn) was the best-selling Lipper global classification for the month. It was followed by Equity Sector Information Technology (+$30.2 bn), Equity Global (+$20.0 bn), Bond USD Medium Term (+$14.0 bn), and Equity Global ex U.S. (+$12.3 bn).
Since money market is in general not considered a core asset type within the global ETF industry, it is not surprising that there were no money market classifications on the table for the best-selling classifications for the global ETF industry.
More generally, these numbers showed the global ETF segment is somewhat concentrated when it comes to the estimated net flows by classification. Generally speaking, one would expect the flows into ETFs to be concentrated, even as investors around the globe may have different preferences, the main trends are normally global investment trends and investors use ETFs to implement their strategic market views and short-term asset allocation decisions. These products are made and, therefore, are easy to use for these purposes.
Graph 5: Ten Best- and Worst-Lipper Global Classifications by Estimated Net Sales, May 1- May 31, 2026 (USD Billions)
Source: LSEG Lipper
On the other side of the table, the 10 peer groups with the highest estimated net outflows for the month accounted for $28.5 bn in outflows. This number was far below the outflows for the previous month (-$41.8 bn).
Equity Japan (-$9.2 bn) was the classification with the highest outflows for the month. It was bettered by Equity Korea (-$4.3 bn), Equity Sector Financials (-$2.9 bn), Alternative Equity Leveraged (-$2.4 bn), and Alternative Cryptocurrency (-$2.3 bn).
The names of the classifications on the list of the 10 Lipper classifications with the highest outflows for May 26 show that ETF investors globally are taking some profits and adjusting their portfolios to the general market environment. Hence, they steer their portfolios according to their risk appetite.
Assets Under Management by Promoters
A closer look at assets under management by promoters in the global ETF industry also showed high concentration, with only 243 of the 829 ETF promoters covered in this report holding assets at or above $1.0 bn, totalling $21,866.2 bn at the end of May. The largest ETF promoter in the global ETF industry—iShares ($6,292.7 bn)—accounted for 28.64% of the overall assets under management, ahead of the number-two promoter—Vanguard ($4,948.2 bn)—and the number-three promoter—State Street SPDR ($2,257.7 bn).
Graph 6: The 10 Largest ETF Promoters by Assets Under Management, May 31, 2026 (USD Billions)
Source: LSEG Lipper
The 10-top promoters accounted for AUM of $17,129.1 bn, or 77.95%, of the overall assets under management in the global ETF industry. This meant, in turn, the other 819 ETF promoters which had registered at least one ETF for sale over the observation period accounted for only 22.05% of the overall assets under management. These numbers show that the assets under management at the promoter level in the global ETF industry are somewhat more diversified than in the single regions or domiciles.
It is not surprising that the global players are dominating the table of the 10-largest ETF promoters by assets under management. That said, it is somewhat surprising that there is only one ETF promoter from the Asia-Pacific region on this table. This might be caused by the high fragmentation of the ETF markets in the region, since most of the ETF promoters in the Asia-Pacific region act quite local.
ETF Flows by Promoters
Since the global ETF industry is highly concentrated when it comes to the assets under management by promoter, it was not surprising that six of the 10 largest promoters by assets under management were among the 10-top selling ETF promoters for May. Vanguard was the best-selling ETF promoter in the global ETF industry for the month (+$62.6 bn), ahead of iShares (+$49.6 bn) and Invesco (+$19.8 bn).
Graph 7: Ten Best-Selling ETF Promoters, May 1 – May 31, 2026 (USD Billions)
Source: LSEG Lipper
The flows of the 10-top promoters accounted for estimated net inflows of $188.9 bn. As for the overall flow trend in May, it was clear that some of the 829 promoters (192) faced estimated net outflows (-$21.7 bn in total) over the course of the month.
Assets Under Management by Region
ETFs domiciled in North America ($16,408.4 bn) held the highest assets under management in the global ETF industry at the end of May. They were followed by ETFs domiciled in Europe ($3,532.2 bn), ETFs domiciled in the Indo-Pacific region ($1,983.3 bn), ETFs domiciled in South and Central America ($31.9 bn), ETFs domiciled in Africa ($16.5 bn), while other domiciles held ($1.2 bn) in assets under management.
Graph 8: Assets Under Management in the Global ETF Industry by Region – May 31, 2026 (in bn USD)
Source: LSEG Lipper
These numbers show that the global ETF industry is a truly global industry with a high concentration of assets under management in a few regions/domiciles.
Estimated Net Flows by Region
By reviewing the estimated flows in the global ETF industry by fund domicile and the respective regions, one needs to bear in mind that some domiciles have specific advantages or disadvantages when it comes to ETF distribution. The U.S. is, for example, a single market and can take profit from the size of the overall market, while in Europe every market is, or at least can be, an ETF domicile. This means that the local markets are much smaller.
That said, the member states of the European Union (EU) have established a fund regulation (Undertakings in Collective Investments and Transferable Securities, or UCITS) which enables the fund and ETF industry to cross-list all products which are registered for sale in one EU country into another EU country. Since UCITS has become such a well-recognized regulatory standard for mutual funds and ETFs, some countries in South and Central America, as well in Asia, allow UCITS funds to be cross-listed and sold to local investors. It is fair to say that there is no other regulatory framework available that allows funds to be distributed in various countries around the globe.
Other mutual recognition agreements, such as those between Hong Kong and China or Hong Kong and Taiwan, are only bilateral and have no global reach. This means that the estimated flows for European ETFs also include flows from South and Central America, as well as from Asia.
Graph 9: Estimated Net Flows in the Global ETF Industry by Region, May 1 – May 31, 2026 (in bn USD)
Source: LSEG Lipper
As one may expect from the assets under management, ETFs domiciled in North America (+$202.0 bn) enjoyed the highest estimated net inflows over the course of May. They were followed by ETFs domiciled in Europe (+$43.0 bn), the Indo-Pacific region (+$12.6 bn), South and Central America (+$0.7 bn), and Africa (+$0.04 bn), while the other regions (-$0.02 bn) faced outflows for the month.
Assets Under Management by Domicile
To investigate the concentration by region further, it makes sense to analyze the assets under management by domicile. As of the end of May, the U.S. was the largest single-country ETF domicile ($15,712.8 bn) of the 41 ETF domiciles covered in this report, followed by Ireland ($2,575.2 bn), Japan ($843.7 bn), Canada ($695.6 bn), and Luxembourg ($647.8 bn). These five ETF domiciles account for assets under management of $20,475.2 bn, or 93.18%, of the overall assets under management in the global ETF industry.
Graph 10: Ten Largest ETF Domiciles by Assets Under Management – May 31, 2026 (in bn USD)
Source: LSEG Lipper
These numbers show that the assets under management in the global ETF industry are dominated by a small number of domiciles. Obviously, this concentration is at least partly caused by the time period over which ETFs are available in the single domiciles, as well the overall market size of these domiciles. That said, Ireland and Luxembourg are true global ETF hubs since ETFs registered under the UCITS regulation can be sold in various markets around the world.
Estimated Net Flows by Domicile
To add more detail to the estimated net flow numbers, it makes sense to shed a light on the single domiciles. The U.S. (+$189.8 bn) was, as to be expected, the single fund domicile with the highest estimated net inflows for May. It was followed by Ireland (+$35.6 bn), Canada (+$12.1 bn), South Korea (+$10.0 bn), and Luxembourg (+$7.9 bn).
Graph 11: The 10 ETF Domiciles with the Highest Estimated Net Inflows, May 1 – May 31, 2026 (in bn USD)
Source: LSEG Lipper
The list of the 10 best-selling domiciles does an even better job of showing that ETFs are truly a global phenomenon since it shows that investors around the globe are using ETFs to implement their asset allocation views into their portfolios.
The views expressed are the views of the author, not necessarily those of LSEG.
This article is for information purposes only and does not constitute any investment advice.
