Single-country exchange-traded funds have become one of the standout stories in US equity ETF investing in 2026, drawing more than $26 billion in year-to-date inflows, according to TD Securities' U.S. ETF Weekly report published this week.
That figure is more than four times the $6.5 billion the category collected across all of 2025 with the acceleration unfolding against a backdrop of record-breaking ETF demand.
Total US-listed ETF assets reached $16.4 trillion as of September 25, 2026, with year-to-date fund flows of approximately $1.5 trillion already surpassing the $1.48 trillion gathered across all of 2025, per TD Securities data sourced from Bloomberg.
The Investment Company Institute (ICI), which tracks weekly ETF net issuance independently, reported total estimated ETF net issuance of $26.61 billion for the week ended September 16, 2026 - consistent with the sustained demand the TD Securities data reflects. As InvestmentNews has reported, ETF inflows have smashed records this year as investors chase growth, income, and international diversification.
Within that record-setting environment, single-country ETFs have attracted an outsized share of attention and capital.
The bulk of single-country inflows have concentrated in a handful of markets with distinct structural investment narratives.
Japan attracted approximately $9.5 billion year-to-date, supported by sustained corporate governance reforms, shareholder-friendly initiatives, and improving corporate profitability, according to TD Securities. South Korea followed closely with roughly $9 billion, driven by its central role in the global artificial intelligence and semiconductor supply chain.
"South Korea and Taiwan offer direct access to key parts of the semiconductor and AI infrastructure supply chain," TD Securities analysts noted in their September 29, 2026 weekly report - a dynamic that has translated directly into fund flows.
Canada drew approximately $3.6 billion in single-country inflows, with demand attributed to exposure across financial institutions, energy companies, and natural resource producers, according to TD Securities. Taiwan, which plays a pivotal role in advanced chipmaking, pulled in roughly $3.1 billion.
At the individual fund level, the iShares MSCI South Korea ETF (ticker: EWY) led with $7.7 billion in year-to-date inflows, followed by the iShares MSCI Japan ETF (EWJ) with $4.3 billion, the Franklin FTSE Taiwan ETF (FLTW) with $2.9 billion, and the iShares MSCI Canada ETF (EWC) with $2.8 billion, per Bloomberg data cited in TD Securities' report. The JPMorgan BetaBuilders Japan ETF (BBJP) also attracted $2.7 billion.
The surge into single-country ETFs reflects a meaningful shift in how financial advisors and wealth managers are constructing international allocations.
Rather than relying solely on broad developed-market or emerging-market benchmarks, investors are increasingly using targeted country ETFs to express conviction around specific economic, technological, or policy catalysts, according to TD Securities' analysis.
TD Securities identified four factors driving demand. Targeted AI exposure through South Korea and Taiwan was the top driver. Improving fundamentals in Japan - including stronger earnings expectations and corporate reform momentum - ranked second.
Investors are also seeking diversification beyond the US after years of domestic equity outperformance, and country ETFs offer more precise portfolio construction than broad international products.
The broader international diversification theme has been a defining feature of 2026. As InvestmentNews reported in March 2026, international equity ETFs drew record inflows in February as non-US markets outperformed and advisors rotated away from concentrated domestic positions.
Single-country ETF momentum arrived during a strong week overall for the US ETF market. US-listed ETFs took in $33.4 billion for the week ending September 25, 2026, led by $17.8 billion in equity ETF inflows and $10.8 billion into fixed income ETFs, according to TD Securities.
Global ex-US ETFs posted their largest weekly inflows over the past year during the period, with the iShares International Country Rotation Active ETF (CORO) and the iShares MSCI ACWI ex US ETF (ACWX) each drawing approximately $4.4 billion.
Alternative ETFs recorded the second-largest weekly inflows over the last year, with the iShares Bitcoin Trust ETF (IBIT), the iShares Systematic Alternatives Active ETF (IALT), and the Fidelity Wise Origin Bitcoin Fund (FBTC) contributing $1.2 billion, $907 million, and $702 million respectively, per TD Securities.
On the equity side, large-cap funds dominated with $19 billion in net inflows, while mid-cap funds saw outflows of $2.1 billion. Factor-based ETFs registered net outflows of $13.3 billion for the week, with value strategies shedding $9.6 billion - the largest weekly value outflows over the past year - driven by redemptions from the Pacer US Cash Cows 100 ETF (COWZ), the VictoryShares Free Cash Flow ETF (VFLO), and the Vanguard Morningstar Value ETF (VTV), according to Bloomberg data compiled by TD Securities.
Within fixed income, aggregate bond and government ETFs led with $7 billion and $4.6 billion in inflows respectively. Mixed-maturity and short-term funds were the most popular by duration, drawing $7.2 billion and $1.5 billion, per TD Securities.
Sector ETFs posted $5.6 billion in net inflows. Financial sector funds attracted $2.3 billion - the second-largest weekly financial ETF inflows in a year - largely on the back of $2 billion flowing into the State Street Financial Select Sector SPDR ETF (XLF). Health care and energy followed with $998 million and $875 million respectively.
At the individual stock level, NVIDIA Corp drew the largest inflows of any single S&P 500 constituent via ETFs last week at $1.4 billion, while Caterpillar Inc recorded the largest outflows at $334 million, according to TD Securities.
The year-to-date flow picture for US ETFs shows equity funds absorbing $972 billion, fixed income $469 billion, and alternatives $37 billion through September 25, 2026, with total industry AUM up 22.2% for the year across 5,678 listed products, per the TD Securities fact sheet.
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