The ETFs Most Bought by Investors in July 2026

Key Takeaways

• Equity ETFs accounted for the majority of inflows into passive strategies in July 2026 in Europe.
• Investors primarily bought global equity ETFs and US market ETFs.
• Among the most-purchased ETFs were also a Japan equity fund and an emerging markets fund.

Equity ETFs led the way in inflows in Europe in July and year-to-date. According to Morningstar data, inflows totaled EUR 34.2 billion in July, out of a total of EUR 47.3 billion, and since January 2026, they have accounted for 76.5% of total inflows into European exchange-traded funds.

European investors primarily purchased ETFs specialized in global and US large-cap stocks with a mixed style—that is, without a specific bias toward growth or value. The Vanguard FTSE All-World UCITS ETF VWRL was the most popular strategy, with net inflows of EUR 3.30 billion in July, but among the most heavily bought ETFs were also the iShares Core MSCI World UCITS ETF IWDA and the Xtrackers S&P 500 Swap II UCITS ETF X500, all of which saw inflows exceeding EUR 1 billion.

In addition to global and US equity ETFs, the most heavily bought funds included a Japanese equity fund, the iShares MSCI Japan ETF IJPN, and an emerging markets fund, the UBS Core MSCI EM UCITS ETF UIMI.

The Most-Bought ETFs by Investors in July 2026

These are the ETFs that raised over one billion euros in July 2026:

1. Vanguard FTSE All-World UCITS ETF
2. iShares MSCI Japan ETF
3. UBS Core MSCI EM UCITS ETF
4. iShares Core MSCI World UCITS ETF
5. UBS MSCI ACWI Climate Paris Aligned ETF
6. Xtrackers S&P 500 Swap II UCITS ETF

Here are the characteristics of each ETF and the analysts’ ratings for those covered by Morningstar research. The Medalist Rating is a forward-looking assessment that assigns three positive grades—Gold, Silver, and Bronze—to strategies believed to have the potential to outperform their category over an entire market cycle. For funds not directly covered by analysts, the rating is assigned using an algorithm. Flow data are as of July 31; assets under management and return are as of August 18.

Vanguard FTSE All-World UCITS ETF VWRL

• Morningstar Category: Global Large-Cap Blend Equities
• Morningstar Medalist Rating: Gold
• Process Pillar: Above Average
• People Pillar: Above Average
• Parent Pillar: High

The fund, which had raised EUR 3.3 billion as of July 2026, has assets under management of EUR 72.09 billion and invests in global equity markets.

The ETF has a Gold Medalist Rating. It tracks the FTSE All-World Total Net Return Index, which represents approximately 90% of global market capitalization and includes 48 developed and emerging markets.

“The index is dominated by the United States, which accounts for about two-thirds of its value, while the information technology sector makes up about a quarter of the overall weighting. The top 10 components—primarily tech giants such as Apple AAPL, Microsoft MSFT, and Nvidia NVDA—account for about 20% of the index’s value,” says Eugene Gorbatikov, an analyst at Morningstar.

“The strategy has generated risk-adjusted returns that, net of fees, outperform comparable funds. Broad-based gains across global equity markets drove double-digit returns for the fund in 2025. Particularly strong performance in emerging markets further boosted results, enabling the fund to outperform indices focused exclusively on developed markets.”

iShares MSCI Japan UCITS ETF USD (Dist) IJPN

• Morningstar Category: Japan Large-Cap Blend Equity
• Morningstar Medalist Rating: Silver
• Process Pillar: Above Average
• People Pillar: Above Average
• Parent Pillar: Above Average

The iShares ETF focused on the Japanese stock market raised EUR 1.57 billion in July 2026, bringing its total assets under management to EUR 4.40 billion.

The fund has a Silver Medalist Rating. According to Kenneth Lamont, principal at Morningstar, “it represents a solid option for investors seeking exposure to the Morningstar category of Japanese large-cap stocks.”

“Our conviction is based on the fund’s low management fee and its representative exposure to beta in a market where passive investments have performed well over extended periods,” says the analyst.

“The market-capitalization-weighted MSCI Japan Index tracks the performance of approximately 180 Japanese large- and mid-cap companies, which account for about 85% of the total market value.”

“With a management fee of 0.12%, the fund ranks among the lowest-cost passive options and maintains a significant cost advantage over competing active funds. It is worth noting that until 2023, this fund charged an excessively high fee of 0.59%, which is reflected in its historical performance.”

UBS Core MSCI EM UCITS ETF UIMI

• Morningstar Category: Emerging Market Equity
• Morningstar Medalist Rating: Bronze
• Process Pillar: Medium
• People Pillar: Above Average
• Parent Pillar: Medium

The UBS emerging markets equity ETF raised EUR 1.45 billion in July 2026, bringing its total assets under management to EUR 10.83 billion. It has a Bronze Medalist Rating but is not directly covered by Morningstar analysts.

The fund tracks the MSCI Emerging Markets Index, which is market-capitalization-weighted and free-float-adjusted and includes large- and mid-cap companies across 24 emerging markets. With approximately 1,200–1,400 constituents, the index covers about 85% of the tradable stocks in each country.

iShares Core MSCI World UCITS ETF IWDA

• Morningstar Category: International Large-Cap Blend Equity
• Morningstar Medalist Rating: Gold
• Process Pillar: Above Average
• People Pillar: Above Average
• Parent Pillar: Above Average

The iShares Global Equity ETF raised EUR 1.18 billion in July 2026, bringing its total assets under management to EUR 131.59 billion.

The fund has a Gold Medalist Rating. According to Morningstar’s Gorbatikov, “it offers a solid passive approach to global equity investing, providing exposure to large-cap stocks across 23 developed markets that, collectively, account for approximately 85% of the developed-market universe.”

“The fund has historically delivered solid performance, consistently outperforming most funds in the same category. The challenges faced by active managers in the highly efficient US market—which accounts for about two-thirds of the global equity landscape—highlight the advantages of passive funds like this one.”

“iShares replicates the index’s performance through an optimized physical replication strategy. The fund maintains a representative sample of securities that mirrors the index’s risk and return profile. This approach, which is particularly effective for indices containing small-cap and illiquid securities, helps balance tracking error and transaction costs.”

UBS MSCI ACWI Climate Paris Aligned UCITS ETF ACPA

• Morningstar Category: International Large-Cap Blend Equity
• Morningstar Medalist Rating: Bronze
• Process Pillar: Medium^Q
• People Pillar: Above Average
• Parent Pillar: Average

The UBS ETF, which invests in international equity markets, raised EUR 1.15 billion in July 2026, bringing its total assets under management to EUR 1.24 billion. The fund has a Bronze Medalist Rating but is not directly covered by Morningstar analysts.

It tracks the MSCI ACWI Climate Paris Aligned PAB USD Index, which includes mid- and large-cap stocks from developed and emerging markets. The Index overweights companies that have embarked on a credible decarbonization path or that offer green solutions, and underweight those that are poorly positioned relative to the transition to a low-carbon economy, considering the requirements of the 2015 Paris Climate Agreement.

Xtrackers S&P 500 Swap II UCITS ETF X500

• Morningstar Category: U.S. Large-Cap Blend Equity
• Morningstar Medalist Rating: Gold
• Process Pillar: High
• People Pillar: Above Average
• Parent Pillar: Average

The Xtrackers ETF, which invests in U.S. large-cap companies, raised EUR 1.04 billion in July 2026, bringing its total assets under management to EUR 5.04 billion. The fund has a Gold Medalist Rating and is not directly covered by Morningstar analysts.

The ETF tracks the S&P 500 Index, which comprises the largest U.S. companies that meet its liquidity and profitability criteria. Companies are eligible for inclusion only if the sum of their earnings over the past four quarters is positive, as is their earnings for the most recent quarter. The profitability criterion gives the portfolio a slight bias toward high-quality stocks. Once the index committee has selected the stocks, it weighs them based on market capitalization.