ETF Market Pulse Week 2 – September 2026 Commodities Surge, Cash Builds and AI Innovation Accelerates

ETF Market Pulse Week 2 – September 2026: Commodities Surge, Cash Builds and AI Innovation Accelerates

 ETF Market Pulse 2.0: We are enhancing our weekly ETF Market Pulse with a broader Sebastien Lemaire and more comprehensive set of market indicators. In addition to tracking weekly performance across all unleveraged ETFs and ETCs domiciled in the US and Europe, Jérémy Cadenat providing detailed insights into the best and worst performing market segments and the drivers behind their moves, we are now incorporating primary market flows across all Lalatendu Khandagiri US and European ETFs and ETCs, covering all major asset classes. The publication will also feature a summary of new product launches globally. This expanded framework Sunil Vaderahalli Dayananda aims to provide a more complete view of investor positioning and product innovation across the ETF ecosystem.

 Energy shock reshapes the ETF leaderboard. ETF performance was driven by the energy and geopolitical shock, with commodities, Japan equities and short-term rates leading gains. Investors favoured exposures directly linked to energy scarcity and supply-chain disruptions, boosting commodities, tanker shipping and European natural gas. In contrast, rising yields and a risk-off backdrop weighed on long-duration and high- beta segments, with uranium miners, biotech equities and palladium among the weakest performers. Overall, markets rewarded immediate beneficiaries of tighter energy markets while penalising more economically sensitive and financing-dependent exposures.

 ETF flows remained resilient at $25bn last week, with equities capturing 70% of inflows, but strong demand for money-market ETFs highlights a cautious investor mindset. Investors continued to selectively add risk through US small caps and Treasuries while reducing exposure to crowded trades such as US credit, semiconductors and Korea, equities. On a relative basis, inflows favored defensive and quality-oriented segments including Health Care, AI, Spain, overnight rates and REITs. Overall, flows might point to a selective “buy-the-dip” environment, with investors positioning for a potential macro turning point while maintaining a preference for liquidity and short-duration assets.

 ETF launches remained globally diverse, but three themes stood out this week: the expansion of leveraged products, the broadening of thematic exposures, and growing adoption of active fixed income ETFs. Asia focused on more traditional equity and semiconductor strategies, with a notable South Korean launch combining the S&P 500 and short-duration bonds. Europe saw continued momentum in active fixed income alongside new leveraged exposures to major equity indices. Meanwhile, the Americas remained the most innovative region, led by a diverse mix of leveraged, thematic and active fixed income launches, including highly specialized US strategies and an AI- focused equity ETF in Brazil. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX isclaimer

Please see important disclaimer and disclosures at the end of the document

ETF Returns: Energy shock reshapes the ETF leaderboard Geopolitical Jitters Lift Commodities, Pressure Equities and Bitcoin ETF weekly performance heatmap across selected asset classes Weekly USD total returns (%) | US and Europe‑domiciled long‑only ETFs (unhedged share classes) | Colors by Asset

Source: SG Cross Asset Research/ETF, Bloomberg, US Equities: SPY US, European Equities: VGK US, Japan Equities: EWJ US, EM Equities: IEMG US, US Small Caps: IWM US, US Value: VTV US, US Growth: IWF US, Short Term Rates: SGOV US, Govies: IGBG NA, Inflation Bonds: TIP US, IG Credit: AGG US, HY Credit: HYG US, EM Bonds: EMB US, Broad Commodities: PDBC US, Gold: GLD US, Bitcoin: IBIT US