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US Fund Flows: ETFs and Bond Funds Dominate in January 2026
The latest US fund flows chart highlights a record $136 billion inflow for long-term US mutual funds and ETFs, sharp divergence across sector equity funds, and persistent weakness in US equity fund flows.
Key Takeaways
- Long-term US mutual funds and exchange-traded funds gathered $136 billion in January 2026, the second-largest monthly total since March 2021.
- Taxable-bond funds drove most of the inflows, with $91 billion, including $27 billion into intermediate core bond funds, their second-largest monthly figure on record.
- Municipal-bond funds brought in $14 billion, their second-largest inflow on record, pushing total muni bond fund assets over $1 trillion for the first time in four years.
- US equity funds shed $34 billion, while international equity funds attracted $31 billion. Emerging-market funds led the way with $15 billion in inflows.
- Sector equity funds achieved a record $28 billion inflow, with natural resources funds contributing $7.5 billion, the largest monthly inflow on record for the category.
US Investors Poured $136 Billion Into Long-Term Funds in January
Consistent with recent trends, flows were concentrated in bond funds as investors searched for stability, while US equity funds continued to shed assets for the ninth consecutive month. Taxable- and municipal-bond funds both experienced their largest inflows since 2021, while natural resources equity funds experienced their largest inflow on record, driven by rising metal prices.
The charts below illustrate which direction the money is flowing for a variety of fund types. For a more complete analysis, download the full monthly report.
US Fund Inflows Not Wavering
Source: Morningstar Direct Asset Flows. Data as of Jan. 31, 2026.
Navigating Market Volatility Through Fund Flows Data
International Equity Bags Another Month of Inflows
As with US and sector-equity funds, the same themes were on repeat. International-equity funds gathered $31 billion in January 2026, their ninth consecutive monthly inflow.
Emerging-market funds stood out, pulling in $15 billion, the largest inflow on record for the category. Like US equity, international fund flows have been dominated by passive constituents, whose inflows far outpaced active strategies.
Foreign-Stock Funds Take Flight
Source: Morningstar Direct Asset Flows. Data as of Jan. 31, 2026.
ETF Giants Keep Growing
ETFs continued to dominate fund flows in January 2026. Active ETFs are gaining traction, complementing the steady growth of passive ETFs. This trend highlights the growing influence of ETFs within US equity markets, even as active open-end funds experience persistent outflows.
US Equity Fund Growth Dominated by ETFs, Including Active Ones
Source: Morningstar Direct Asset Flows. Data as of Jan. 31, 2026.
As Natural Resources Surge, US Equity Funds Struggle
Sector-equity funds completed a record-breaking month with a $28 billion inflow in January 2026, led by natural resources funds, which brought in $7.5 billion. This marks the largest monthly inflow on record for the category, driven by rising metal prices and strong demand for rare-earth metals and uranium.
Meanwhile, US equity funds shed $34 billion, continuing a long-term trend of outflows as investors rebalance out of growth and shift from active to passive strategies.
Sector Equity Funds Start 2026 With a Bang
Source: Morningstar Direct Asset Flows.Data as of Jan. 31, 2026.
More Muni Momentum
Municipal-bond funds brought in $14 billion in January 2026, their second-largest inflow on record. The month’s 1.5% organic growth rate was the largest since January 2021. Recent flows pushed muni bond funds over the $1 trillion net assets mark for the first time in four years.
Muni Momentum Approaches Record Levels
Morningstar Direct Asset Flows. Data as of Jan. 31, 2026
More on Fund Flows from Morningstar
For more comprehensive analysis and commentary on US Fund Flows, download this month’s full report.
- Flows for the largest fund families
- Morningstar categories with the lowest and highest fund flows
- Government bond fund and money market flows
Morningstar’s asset fund flows history dates to 2008, with forecasting models for future growth rates. The Morningstar Direct application includes all fund flows data along with its performance reporting, presentation, and search capabilities. The Direct team also supports new users with onboarding, training materials, and 24-hour customer service.
Start a free trial of Morningstar Direct and evaluate fund flow data your way.
Note: The figures in this report were compiled on Dec. 12, 2025, and reflect only the funds that had reported net assets by that date. The figures in both the commentary and the extended tables are survivorship-bias-free. This report includes both mutual funds and exchange-traded funds but not funds of funds unless specifically stated. It does not include collective investment trusts or separate accounts. Important methodology note: Morningstar computes flows using the standard approach in the industry: Net flow is the estimated change in assets not explained by the performance of the fund. Our method assumes that flows occur uniformly over the course of the month. Adjustments for mergers are performed automatically. When liquidated funds are included, the fund's final assets are counted as outflows. Reinvested dividends are not counted as inflows. We use fund-level reinvestment rates to improve accuracy in this respect. We make ad hoc adjustments for unusual corporate actions such as reverse share splits, and we overwrite our estimates with actual flows if managers are willing to provide the data to us. When possible, Morningstar offsets outflows caused by transfers to other investment vehicles that share an identical mandate since they are not indicative of a change in investor interest.