July Monthly Active ETF Monitor
AUM, flows and more
U.S. ETF assets increased by 2.4% in July 2025, reaching a total of $11.8 trillion.
ETF flows remained strong in July, totaling over $123 billion, with about 65% directed toward equities and 19% toward fixed income. For the year, ETF flows totaled about $669 billion.
Active spotlight
Flows totaled about $45 billion in July 2025, with about 58% going into equities and about 32% into fixed income. Total assets ended the month at $1.21 trillion.
Over 37% of ETF flows in 2025 have gone into active strategies.
82 active ETFs were launched in July. Active ETFs represent 86% of total ETF launches in 2025.
Active fixed income ETFs flex their muscles
Fixed income is having a moment in 2025, gaining further prominence in portfolios with diversification a key priority. U.S. fixed income ETF assets recently surpassed the $2 trillion mark and now account for about 17% of the total ETF market. In the U.S., playing a big role in that milestone were active fixed income ETFs, which now represent over 15% of fixed income ETF assets. And J.P. Morgan Asset Management expects active fixed income ETFs’ rise to continue—by 2030, they could represent nearly 30% of the projected $6 trillion fixed income ETF market.
With seven active fixed income ETFs that have attracted over $1 billion in flows, J.P. Morgan has a unique perspective on active ETFs’ growth trajectory. Key trends that we’re tracking include:
Accelerated asset growth: Over the past decade, active ETFs have grown at a compound annual growth rate (CAGR) of 37%, compared to the 20% growth rate of the fixed income ETFs overall. This rapid expansion has increased active ETFs’ market share from less than 5% to over 15%.
Strong flows: This year, 41% of flows into fixed income ETFs have gone into active ETFs, a notable increase from 32% at the same time last year. These flows have been driven primarily by ultrashort categories, followed by traditional active categories such as core, core plus and multi-sector bonds.
Growing launch momentum: Over 90% of the fixed income ETFs launched this year have been active, with the intermediate core and core plus categories leading the way.
Active fixed income ETFs offer investors operational efficiencies like market access, enhanced liquidity, daily transparency and price discovery. They also provide cost advantages, including lower expense ratios, reduced transaction costs, and efficient secondary market trading. As more investors recognize and realize these advantages, we expect active ETFs to play a leading role in shaping the future of fixed income.
For a more in-depth exploration of these advantages, please review our Strategic Summary: The Power of Fixed Income ETFs.
Active fixed income managers outperform their passive peer
Source: Morningstar, J.P. Morgan Asset Management analysis; charts reflect the most recently available data as of March 31, 2025. Analysis includes mutual funds and ETFs in the Morningstar intermediate core and intermediate core plus categories with a primary prospectus benchmark of the Bloomberg US Aggregate Bond Index. Only includes oldest share class. Past performance is not indicative of future returns. Core bonds typically hold less than 5% in below investment grade debt.
Beyond indices: The active manager's edge in fixed income
The $141 trillion fixed income market is vast, diverse and complex, making diversification challenging, especially through individual bonds, which require significant resources. Complicating matters is that benchmark fixed income indices like the Bloomberg U.S. Aggregate Index (AGG) have their limitations. For example, the AGG covers only part of the market and excludes certain asset classes altogether, including high yield corporates and non-agency MBS. Meanwhile, passive products that track fixed income indices face replication issues.
But active managers aren’t bound by the limitations of passive investing. They have flexibility in their approach and a broader investable universe to potentially generate alpha. For example, they can apply well-established research philosophies and extensive experience across market cycles to select debt issuers and adjust strategies based on market conditions. The result? Active management has outperformed the AGG over the 3-, 5- and 10-year periods.
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Unless otherwise stated, all data are as of July 31, 2025 or most recently available.