In July, exchange-traded funds (ETFs) experienced record-breaking inflows, with investors pouring $195 billion globally, surpassing the previous monthly record of $169 billion set in December 2023. This surge was driven by optimism that the U.S. Federal Reserve would soon cut interest rates, creating a favorable market environment. U.S.-listed ETFs received $124 billion, with fixed income ETFs attracting a record $60.5 billion and equity funds $127 billion. Despite a recent market sell-off, investor confidence in ETFs remained strong, with significant inflows continuing even on the worst day of the sell-off.