International ETFs Lead as February Flows Top $190B

Investors poured $191.3 billion into U.S.-listed ETFs during February, accelerating from January’s already-strong $165 billion haul.

With two months down, year-to-date inflows have reached nearly $358 billion. At this pace, the industry could be on track for a record-breaking $2 trillion year.

While the overall market drifted sideways—U.S. stocks were roughly flat in February and are up only about 1% for the year—ETF buyers remained aggressive. Once again, international stock ETFs were among the biggest beneficiaries.

International Equity ETFs Stay Hot

International equity funds pulled in more than $62 billion in February, outpacing the $46 billion that went into U.S. stock ETFs.
The Vanguard Total International Stock ETF (VXUS) led the international charge with $4.4 billion of inflows for the month. The fund is up 9% year to date and sits near all-time highs.

VXUS was the third-most popular ETF by inflows during February, behind only the ProShares GENIUS Money Market ETF (IQMM) and the Vanguard S&P 500 ETF (VOO). VOO added $17 billion, while the Invesco S&P 500 Equal Weight ETF (RSP) brought in $5.6 billion.

RSP has significantly outperformed so far in 2026, with a gain of nearly 7% compared to roughly 1% for VOO, reflecting strength in smaller companies relative to mega-cap names.

IQMM Tops the List

The biggest inflow of the month went to IQMM, which gathered $18.2 billion in February. That pushed total U.S. fixed income ETF inflows to $58.3 billion for the month.

As previously reported, the bulk of IQMM’s inflows came from within the ProShares ecosystem. According to Bloomberg data, roughly 99% of the fund’s shares are held by affiliated ProShares ETFs, primarily leveraged and inverse products such as the ProShares UltraPro QQQ (TQQQ) and the ProShares UltraPro Short QQQ (SQQQ).

In effect, ProShares consolidated cash balances from across its ETF lineup into a centralized Treasury sleeve. While IQMM is structured to comply with the GENIUS Act and could serve as a reserve vehicle for stablecoin issuers, February’s surge was driven primarily by internal reallocations rather than external stablecoin demand.

The flow was massive, but it doesn’t represent new outside capital entering the ETF industry.

Software Slides, Korea Surges

Two of the most notable equity inflow stories came from opposite ends of the performance spectrum.

The iShares Expanded Tech-Software Sector ETF (IGV) saw $3.7 billion of inflows despite plunging during February. The fund is down 22% year to date as investors worry that generative AI could disrupt traditional software business models.

Meanwhile, the iShares MSCI South Korea ETF (EWY) surged 52% year to date, driven by sharp gains in Samsung and SK Hynix, two memory chipmakers benefiting from booming AI-related demand. EWY attracted $2.8 billion during the month.

Fixed Income Demand Remains Strong

Beyond IQMM, traditional bond ETFs also saw solid demand.

The iShares 0–3 Month Treasury Bond ETF (SGOV) pulled in $4.2 billion, while the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) added $3.2 billion.

The 10-year Treasury yield fell from about 4.2% to 4% during the month but remains within recent trading ranges.

International fixed income funds added $12.1 billion in February. Commodity ETFs gathered $7.7 billion, and alternative ETFs took in $3 billion.

Currency ETFs lost $1.1 billion, while inverse ETFs shed $587 million as investors dialed back bearish positioning.

XLF Hit by Credit Concerns

Among equity sectors, the Financial Select Sector SPDR Fund (XLF) stood out on the downside with $3.6 billion in outflows. XLF is down 6.1% so far this year, underperforming amid concerns about loan exposure to private companies.

The broader AI disruption narrative weighing on software stocks may also be feeding into concerns about credit quality in parts of the financial sector.

Still a Record Pace

Even adjusting for the internal nature of IQMM’s flows, ETF demand remains robust. Nearly $358 billion has flowed into U.S.-listed ETFs in just two months.

If that pace continues, 2026 could set a new annual inflow record.

For a full list of the top ETF inflows and outflows for February and for 2026 so far, see the tables below.