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Tech & Energy Lead Sector Fund Flows in October

BY | ETF Database
11/11/2026 | 20 VIEWS
With less than two months left in 2026 at this point, which sectors are providing the most compelling investment opportunities?Key Takeaways: In the month of October, the tech and energy sectors collectively saw over $10 billion in inflows. This is not a particular surprise, given the crucial role AI and energy are currently playing on a global scale. Investors can gain targeted access to these sectors through the State Street Technology Select Sector SPDR ETF (XLK) and the State Street Energy Select Sector SPDR ETF (XLE A). Of course, there are plenty of different ways one can go about choosing a sector to invest in. One method of doing so is to start by taking a look at where investor funds are currently going. A recent article from State Street examined this very topic. In the article, Matthew Bartolini, CFA, CAIA, Global Head of Research, took a close look at where investors and advisors were putting their funds to work in October. As Bartolini noted, two equity sectors in particular led the pack in the month of October: technology and energy. The tech sector alone saw $7.4 billion inflows within October alone, bringing year-to-date inflows up to $66.5 billion. See More: Coca-Cola Sips on Profits While Inflation Sweats At this point, tech being a dominant equity sector is no surprise. AI adoption and growth is a common investment theme, and the technology is being implemented across a variety of businesses. However, AI’s dominant position doesn’t necessarily mean that the other equity sectors are doomed to sit in the dust. “A monoculture doesn’t mean that all other cultural topics and trends disappear,” Bartolini noted. “Sometimes, it gives way to a dual narrative as another dominant topic with overlapping threads takes hold.” Energy has been no slouch, either. The sector’s inflows sat around $2.8 billion for October, and total around $12.1 billion year-to-date. Naturally, energy has also been a well-positioned sector this year. Not only is energy a crucial component of AI infrastructure, but this has been a sector that has been able to benefit from the Iran war. See More: It’s Not Tech: Energy Leads the S&P 500A Moment to Consider XLK and XLEOf course, investors looking to follow the flows and gain exposure to these two sectors can do so through State Street’s own sector ETF library. The State Street Technology Select Sector SPDR ETF (XLK A) can help portfolios magnify their access to the tech industry. Meanwhile, the State Street Energy Select Sector SPDR ETF (XLE A) may prove useful for providing focused energy exposure. With both funds offering low expense ratios of eight basis points, it’s easy to see how one could pair XLK and XLE in a portfolio for dual-sector exposure. For those who are especially keen on the opportunities within tech and energy, it’s certainly an approach that may be worth considering. For more news, information, and analysis, visit our Sector Investing Content Hub.

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