ETF Demand Surges in January, with Record Inflows to Start 2026

January ETF Flows: Key Takeaways

• US exchange-traded funds pulled in an estimated $156 billion of net inflows in January 2026, the strongest haul ever by ETFs in the month of January.
• Investors piled on foreign-stock exposure, adding $51 billion to international-equity ETFs.
• High demand for emerging-market ETFs, which absorbed $19 billion of new investment, coincided with strong performance forecasts.
• Investors sought safety in taxable bonds, piling in $46 billion, led by intermediate- and short-term bond ETFs.
• Traders pulled back from speculative bets as trading–leveraged equity ETFs recorded outflows of $7 billion.

US exchange-traded funds opened 2026 with an estimated $156 billion of net inflows, delivering the strongest January start for the ETF market. The strategies that investors demanded shifted meaningfully in recent months. They favored international equities, sector equities, and core bonds over the typically dominant US equity ETFs.

The month’s flows suggested more defensive positioning and diversification, with investors allocating to bonds and international-equity ETFs as US stock market concentration remained elevated.

International-Equity ETFs Post a Record Month

International-equity ETFs led all asset classes in January, pulling in an estimated $51 billion, their largest monthly inflow on record. Despite accounting for roughly 15% of total ETF assets, international funds absorbed about one-third of all net inflows during the month. January’s tidal flows followed a record year in 2025 for international equities amid strong returns for the category group.

Demand was concentrated in two Morningstar Categories. Diversified emerging-markets ETFs gathered $19 billion, setting the record for their largest monthly inflow, and foreign large-blend ETFs raked in $15 billion. Total return forecasts for both international developed-market and emerging-market stocks tend to be higher than those for US stocks over the next decade or so. Strong anticipated returns could be driving higher demand, alongside concentration concerns in the US stock market.

Flows fell into a handful of large ETFs. IShares Core MSCI Emerging Markets ETF IEMG absorbed nearly $9 billion, while iShares MSCI Emerging Markets ETF EEM added more than $4 billion, accounting for most of emerging-market flows. On the foreign large-blend side, Vanguard Total International Stock ETF VXUS pulled in roughly $6 billion, making it one of the largest contributors to international-equity flows.

US equity ETFs still attracted $17 billion in January, but that’s less than their usual share. Vanguard S&P 500 ETF VOO continued its tear, minting a fresh $11 billion.

Bond ETFs Continue on a Steady Course

Taxable-bond ETFs remained a major destination for investor capital, pulling in a record $46 billion in January. The category group ranked second only to international equity and continued its steady run from 2025. Vanguard Total Bond Market ETF BND and Vanguard Intermediate-Term Corporate Bond ETF VCIT were the two largest beneficiaries, together accounting for nearly $7 billion of net inflows.

Flows gravitated toward the middle of the yield curve. Intermediate core-bond ETFs took in $10 billion, the largest of any fixed-income category.

Ultrashort bond ETFs attracted the second-most inflows within fixed income, adding over $5 billion. Cashlike vehicles such as iShares 0–3 Month Treasury Bond ETF SGOV led the category, reflecting an ongoing demand for yield with minimal risk.

By contrast, long-government bond ETFs shed $1.4 billion, with outflows from funds such as iShares 20+ Year Treasury Bond ETF TLT. With fed rates still relatively high, investors can earn attractive yields through short- and intermediate-term bond funds, reducing the need for the added risk of long-term bonds.

Investors Flock to Natural Resources ETFs

Sector-equity ETFs pulled in a record $29 billion in January, the third most of any asset class. Natural resources ETFs led sector equities, followed by industrials, with energy and financials ETFs right behind.

Natural resources ETFs gathered over $7 billion, their largest monthly inflow on record. These funds invest in companies in commodities-based industries. These ETFs tend to have a low correlation with most other asset classes and can diversify portfolios. Also, the average fund’s performance in the natural resources category was over double that of the average large-blend equity fund in 2025. Natural resources ETFs also held up better in 2022 when stocks fell.

Global X Copper Miners ETF COPX pulled in the most new money, $2 billion, of any natural resources ETF. It skyrocketed in the second half of 2025, returning 93% for the year. It has already returned 20% in January 2026. That said, the ETF has made massive swings in the past, such as its three-year streak of double-digit negative performance from 2013 through 2015.

Investors favored defense-oriented ETFs in the industrials category. Global X Defense Tech ETF SHLD pulled in the most inflows of any industrial ETF, capturing over $1 billion in new assets.

Traders Sour on Semiconductors and Silver

Trading-oriented ETFs moved sharply out of favor at the start of the year. Trading–leveraged equity ETFs recorded $7 billion of net outflows in January, their largest monthly redemption on record.

Traders turned bearish on semiconductors. Direxion Daily Semiconductor Bull 3X ETF SOXL, which targets 3 times the daily return of the NYSE Semiconductor Index, bled roughly $6 billion. At the same time, its inverse counterpart, Direxion Daily Semiconductor Bear 3X ETF SOXS, pulled in about $524 million, the most of any trading tool. Leveraged and inverse semiconductor ETFs from ProShares told a similar story.

Traders sensed a lull in the precious-metals rally. ProShares UltraShort Silver ZSL logged the second-largest inflow among trading tools. The ETF seeks twice the inverse daily performance of the Bloomberg Silver Subindex. Its long counterpart, which targets 2 times exposure to silver, saw outflows. Inverse gold ETFs also drew inflows, though they were less pronounced.

Vanguard Captures the Bulk of New Assets

At the provider level, asset gathering remained highly concentrated among the largest firms. Vanguard led all providers, pulling in an estimated $49 billion in January and accounting for nearly one-third of total ETF inflows. IShares ranked second, gathering $19 billion. The two firms pulled in more new money in January than the next 14 firms combined. More inflows enable firms to charge and maintain low fees, making it difficult for newer and smaller firms to compete on cost.

Check out last month’s flows here.