ETF flows surge $54bn as stocks sell off and markets go 24/7

A stock market retreat last week pushed U.S. ETF inflows to $54.1 billion as advisors and investors rotated into defensive positions – even as an industry conference signaled that the market structure underpinning those trades is about to change fundamentally.

According to data published this week by TD Securities and sourced from Bloomberg, U.S.-listed ETFs recorded average daily turnover of $370 billion for the week ending November 6, 2026 – equivalent to 125% of the average daily turnover over the prior year. Equity ETFs absorbed $42.0 billion in net inflows, while fixed income ETFs drew $13.8 billion, as investors moved away from growth and cyclical exposure toward safer ground.

The week’s flows came against a backdrop of broad equity weakness. The SPDR S&P 500 ETF Trust (SPY) fell 2.7%, the Invesco QQQ Trust dropped 5%, and the iShares Russell 2000 ETF (IWM) declined 2%. Technology, communications, and energy were the hardest-hit sectors, shedding $1.7 billion, $1.3 billion, and $1.2 billion respectively from ETF allocations, according to TD Securities.

Defensive rotation dominates the week

Within equity ETFs, large-cap funds led net inflows at $35.4 billion, followed by broad market vehicles at $3.0 billion, as advisors moved away from concentrated sector and growth bets.

Factor ETFs attracted $8.4 billion in net flows, with value, equal-weight, and dividend/income strategies drawing the most interest at $2.9 billion, $2.4 billion, and $2.0 billion respectively. Growth ETFs, by contrast, saw $1.0 billion in outflows.

The Vanguard S&P 500 ETF (VOO) recorded the largest single-fund inflow of the week at $17.6 billion. The iShares Core S&P 500 ETF (IVV) and the Invesco QQQ Trust (QQQ) followed with $7.0 billion and $3.6 billion respectively. On the outflow side, the State Street SPDR S&P 500 ETF Trust (SPY) saw the largest withdrawals at $7.0 billion, while semiconductor-focused products faced significant selling pressure — the iShares Semiconductor ETF (SOXX) shed $3.9 billion and the Direxion Daily Semiconductor Bear 3X ETF (SOXS) bled outflows equivalent to 165% of its assets under management.

Health care was a notable exception to the week’s risk-off tone, drawing $508 million in sector ETF inflows. NVIDIA Corp attracted the largest single-stock inflows via ETF activity at $2.5 billion, even as semiconductor names broadly faced pressure.

On the fixed income side, government bond ETFs led with $4.0 billion in inflows, followed by municipals at $2.6 billion. Corporate high yield ETFs recorded their third-largest weekly inflows of the past year, led by the iShares Broad USD High Yield Corporate Bond ETF (USHY) and the iShares iBoxx USD High Yield Corporate Bond ETF (HYG), which attracted $701 million and $602 million respectively, all per TD Securities data.

The market structure behind those trades is shifting

Even as advisors processed the week’s selloff, a broader debate about how ETFs will trade in the future was underway at the 27th TD Portfolio Management & Market Structure Conference, held the same week.

The event surfaced a clear theme: markets are moving toward continuous, round-the-clock operation – and the ETF industry will need to decide how to respond.

Jamie Selway, Director of Trading and Markets at the Securities and Exchange Commission, outlined four regulatory priorities for the SEC’s trading agenda: 24/7 trading, tokenization, greater coordination with the Commodity Futures Trading Commission, and modernization of the existing regulatory framework.

The most immediate development is Nasdaq’s plan to introduce an overnight session running from 9 p.m. to 4 a.m. ET beginning December 6, 2026, enabling trading 23 hours a day, five days a week. Selway noted that longer trading hours improve access but carry operational costs across staffing, technology, and risk management. Conference notes published by TD Securities state that his remarks do not reflect the views of TD Securities.

For ETF-focused advisors, the implications are layered. Highly liquid U.S. equity ETFs with deep futures markets are likely better positioned for extended-hours trading, because market makers can continue to price and hedge exposure even when the underlying cash equity market is closed. International equity, fixed income, and more niche ETFs face a harder path — their underlying securities may be closed or less liquid overnight, which could widen bid-ask spreads and reduce depth outside regular hours, according to TD Securities’ analysis of the conference panel.

Grant Vingoe, Chief Executive Officer of the Ontario Securities Commission, speaking at the same event, indicated that Canada is likely to take a more cautious approach to 24/7 trading, citing concerns around overnight liquidity, price discovery, and retail investor behavior. His remarks are relevant context for advisors working with cross-border or globally diversified ETF portfolios.

Tokenization moves from theory to infrastructure

Tokenization – the representation of ETF shares as digital tokens on a blockchain – was a second major theme at the conference.

Dennis Lee, Head of Digital Issuance at the New York Stock Exchange, outlined the development of NYSE’s digital alternative trading system, which could allow equities and ETFs to trade with instant settlement and fractional ownership. The SEC is permitting experimentation with tokenized securities through a five-year innovation exemption, according to conference notes summarized by TD Securities.

For advisors, the practical takeaway is that tokenization is unlikely to replace the ETF wrapper – instead, it could extend how ETF shares are held, traded, and distributed. Blockchain infrastructure could enable ETF shares to be held in digital wallets and traded through crypto-style platforms alongside conventional brokerage accounts, potentially broadening access and reducing settlement friction.

Advisors considering how ETF market structure might evolve can find broader context in InvestmentNews’ coverage of NYSE’s 24/7 trading platform development, published earlier this year.

Industry AUM crosses $16 trillion

At the market level, total U.S. ETF assets under management reached approximately $16 trillion as of November 6, 2026, with year-to-date fund flows of $1.79 trillion, according to TD Securities.

The U.S. ETF market now spans 5,717 funds across 448 providers. Vanguard and BlackRock remain the two largest ETF issuers, holding $4.6 trillion and $4.6 trillion in AUM respectively. Passive strategies account for approximately 86% of total ETF assets, with active ETFs – which have drawn considerable advisor interest in 2026 – holding the remaining 14%.

Fixed income ETFs posted their strongest monthly flows on record in October 2026, a trend that the latest weekly data suggests has continued into November. For advisors navigating a volatile equity environment, the fixed income ETF market is proving to be a primary port of call.

The ETF industry’s pace of change extends beyond flows and market structure.

Fourteen new ETFs launched in the week of November 10, 2026 alone, including Global X’s Global X Magnificent Six ETF and American Century’s American Century Emerging Markets Insights ETF, among others, per TD Securities’ product announcement data.

The best advisors building ETF-centered practices amid these shifts are profiled in InvestmentNews’ 2026 Rising Stars special report, which highlights the next generation of wealth management professionals shaping how ETFs and broader investment strategies are delivered to clients.