Materials Lead the Pack as Sector ETF YTD Inflows Top $13B

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Weekly Channel Summary

The Sector and Industry ETF channel currently commands $897.2B in assets under management across 268 ETFs from 55 unique brands. For the week ending February 6, 2026, the channel experienced net outflows of $898M. Despite this weekly dip, investor sentiment remains decidedly positive for the year, with year-to-date (YTD) inflows totaling $13.44B and an impressive $22.07B added over the past 12 months.

This Week’s Performance Leaders and Laggards

Cyclical and defensive shifts were evident in this week’s performance data. The Materials sector was the standout leader, returning 5.22% for the week, pushing its YTD return to a staggering 15.93%. Conversely, Communication Services was the primary laggard, declining -3.60% on the week, which has dragged its YTD performance into negative territory at -0.99%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Materials 5.22% 9.35% 27.41% 26.59% 15.93% 27.03%
Consumer Staples 4.65% 13.12% 15.49% 7.36% 12.64% 10.00%
Energy 3.41% 14.45% 18.96% 29.24% 16.76% 22.87%
Industrial 2.97% 5.92% 15.45% 20.08% 12.19% 35.52%
Financials 1.97% 0.29% 9.86% 11.35% 3.18% 12.37%
Real Estate 1.84% 3.79% 5.87% 7.34% 4.97% 7.73%
Health Care 1.33% -0.15% 9.11% 24.88% 1.89% 14.48%
Consumer Discretionary 0.60% -0.39% 5.66% 7.25% 2.34% 5.46%
Utilities 0.07% 1.21% -1.09% 3.44% 2.02% 14.74%
Information Technology -0.86% -1.52% 2.89% 19.13% 2.98% 28.91%
Comm Services -3.60% -1.00% 4.54% 10.09% -0.99% 14.24%

Top & Bottom 5 ETFs by Weekly Performance

The JETS (U.S. Global Jets ETF) soared this week with an 11.07% return. On the downside, software focused funds faced significant headwinds, led by IGV (iShares Expanded Tech-Software Sector ETF) and XSW (State Street SPDR S&P Software & Services ETF), which fell -8.62% and -7.00% respectively.

Ticker Fund Name WTD Performance
Top Performers
JETS U.S. Global Jets ETF 11.07%
XTN State Street SPDR S&P Transportation ETF 10.24%
IAT iShares U.S. Regional Banks ETF 8.28%
FTXR First Trust Nasdaq Transportation ETF 7.68%
DVXB WEBs Materials XLB Defined Volatility ETF 7.64%
Bottom Performers
IGV iShares Expanded Tech-Software Sector ETF -8.62%
DVXC WEBs Communication Services XLC Defined Volatility ETF -7.13%
XSW State Street SPDR S&P Software & Services ETF -7.00%
WDAF WisdomTree Asia Defense Fund -5.91%
IETC iShares U.S. Tech Independence Focused ETF -4.65%

Analyzing the Weekly Flows

The channel posted a net weekly outflow of $898M. Industrial was the clear favorite for new capital, attracting $1,177M, bringing its total category AUM to $76.7B. Energy also saw robust demand with $1,038M in net inflows. In contrast, Financials suffered the heaviest rotation out of the sector, shedding $1,225M over the 5-day period.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Industrial 28 $76.7B $1,177M $3,443M $6,405M $4,432M $10,641M
Energy 32 $56.9B $1,038M $4,440M $4,762M $4,987M ($3,300M)
Information Technology 33 $331.2B $428M $1,003M $2,644M $1,945M $8,190M
Materials 10 $12.2B $410M $758M $344M $1,018M $479M
Consumer Discretionary 15 $34.2B ($144M) ($1,259M) ($2,057M) ($1,393M) ($3,859M)
Utilities 11 $36.5B ($246M) ($1,247M) ($636M) ($1,407M) $5,033M
Comm Services 7 $35.3B ($473M) ($494M) $81M ($568M) $2,299M
Health Care 32 $98.1B ($509M) $1,243M $5,818M $2,132M $1,658M
Consumer Staples 13 $28.9B ($547M) ($96M) ($900M) ($260M) ($1,243M)
Real Estate 53 $84.1B ($805M) ($694M) $2,267M ($919M) $3,542M
Financials 34 $103.1B ($1,225M) $2,326M $1,492M $3,474M ($1,367M)

Top & Bottom 5 ETFs by 5-Day Flow

Flow leadership this week was dominated by software and energy, with IGV (iShares Expanded Tech-Software Sector ETF) bringing in a massive $1,245M. Conversely, real estate and consumer staples saw the largest withdrawals, led by IYR (iShares U.S. Real Estate ETF) at ($652M) and XLP (State Street Consumer Staples Select Sector SPDR ETF) at ($591M).

Ticker Fund Name 5-Day Flow
Inflows
IGV iShares Expanded Tech-Software Sector ETF $1,245M
XLE State Street Energy Select Sector SPDR ETF $920M
XLI State Street Industrial Select Sector SPDR ETF $608M
XLV State Street Health Care Select Sector SPDR ETF $480M
VGT Vanguard Information Technology ETF $258M
Outflows
XLF State Street Financial Select Sector SPDR ETF ($1,155M)
IYR iShares U.S. Real Estate ETF ($652M)
XLP State Street Consumer Staples Select Sector SPDR ETF ($591M)
XBI State Street SPDR S&P Biotech ETF ($574M)
SMH VanEck Semiconductor ETF ($502M)

Issuer League Table Update

The sector landscape remains dominated by SPDR (41.93% market share) and Vanguard (24.82% share). For the week, iShares led all issuers in net collection with $552M in weekly inflows, while SPDR saw the largest net withdrawals at ($1,174M).

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
SPDR 28 $376.21B 41.93%
Vanguard 12 $222.73B 24.82%
iShares 49 $143.48B 15.99%
VanEck 11 $45.86B 5.11%
Fidelity 12 $33.07B 3.69%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $552M
Vanguard $220M
Fidelity $61M
Outflows
SPDR ($1,174M)
VanEck ($472M)
Schwab ($92M)

For a deeper dive into these trends, access our FREE, in-depth ETF reports in the right side panel of this page.

Disclosures

This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.

This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.