ETF markets continue to go from strength to strength.
A new report by State Street Investment Management revealed that US-listed ETFs attracted more than US$1 trillion in inflows during the first half of 2026, including US$560 billion in 2Q. Full-year ETF inflows are expected to exceed US$2 trillion, surpassing last year’s record of $1.5 trillion. Strong demand, including for active and fixed-income ETFs, along with market gains has lifted total US-listed ETF assets to a record US$15.8 trillion.
The Trump Account, a custodial savings vehicle designed to give every American child a head start in the stock market, should further boost inflows for the rest of the year. The accounts went live on 4 July 2026 with more than 6 million American children signed on for US$1,000 of “free’’ government money. Then there’s an ongoing annual US$5,000 contribution limit for each account.
The accounts are owned by the child but managed by a parent or guardian and must invest in a low cost ETF that tracks the S&P500 or comparable broad index.
According to ETF Stream, State Street Investment Management will be an immediate winner, as the US Treasury Department announced this week that all contributions to Trump Accounts would initially be invested in the State Street SPDR Portfolio S&P 500 ETF (SPYM).
Parents and guardians can move the funds to four other broad-based US stock market ETFs, BlackRock’s iShares Core S&P 500 ETF (IVV), Vanguard’s Total Stock Market ETF (VTI), State Street’s SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM), or BlackRock’s iShares Core S&P Total US Stock Market ETF (ITOT).
The accounts are great for getting children interested in investing as well as helping to provide for their future. The move will surely help US equities continue to perform.
This week, we have two terrific articles on the Australian market from the ever-popular Emma Lawson of Janus Henderson, and also from CBA.
After highlighting sovereign risk last week, I was very interested to read an article from Tracey McNaughton of Escala Partners. McNaughton questions who is going to pay for AI development and other nation-building projects, and that governments need to think carefully about who pays, who benefits, and who bears the cost. This is well worth a read.
High inflation and lower growth as consumers cut spending means we could be in for a period of stagflation. Vincent Chung from T. Rowe Price takes us through what’s happened to bond markets in the past and finds stagflationary shocks can create short-term pain, but they are often followed by strong fixed income returns.
Markets have been resilient, says Robert Tipp from PGIM, but picking the peak is difficult.
Finally, Challenger has announced an annuity-backed notes program.
In Australian corporate bond market news:
- Bank Of Queensland raised $350m in a Tier 2 subordinated 10NC5 transaction, priced at 158 basis points over 3-month BBSW
- CBA raised $2.75 billion in a five-year senior deal in two tranches:
- A $2.5 billion floating rate note priced at 67 basis points over 3-month BBSW
- A $250m fixed-rate bond with a 5.148% coupon
- Challenger Life Company raised $750m in a three-year annuity-backed transaction in two tranches:
- A $500m floating rate note at 112 basis points over semi quarterly swap
- A $250m fixed rate with a 5.569% coupon
- Nationwide has launched a five-year senior-preferred fixed and/or floating deal with price guidance of 110-115 basis points over swap.
Have a great week.
