Buffer ETFs and Value Rotation Drive Flows

Fund flows on September 18 were led in absolute dollar terms by iShares, which pulled in $9.12B and continues to dominate longer-term windows with $29.74B over five days and $255.94B YTD, while Vanguard sat at the other end with a $13.00B single-day outflow despite a $433.54B YTD haul and $93.09B over 30 days. Among non-mega issuers, Pacer stood out with $4.44B in daily inflows (9.25% of its $48.03B AUM) and a $4.13B YTD total, while First Trust added $4.00B on the day and FT Vest brought in $2.31B, both contributing to FT Vest’s $9.95B YTD figure. ARK gathered $366.4M, extending a $1.31B five-day run despite modest YTD flows of $105.2M. On the outflow side, Invesco shed $4.23B, SPDR gave back $1.80B (fitting a negative 30-day trend of $14.84B), and Capital Group posted the largest genuine net redemption among non-mega names at $411.3M.

Total net flows across all asset classes reached $3.54B on the day, a fraction of the $91.69B five-day and $197.44B thirty-day totals, with Fixed Income leading at $1.75B and Non-Traditional close behind at $2.06B against a $507.02B asset base. Equity as a broad asset class posted a rare single-day outflow of $1.28B despite $939.13B in YTD inflows and $1,296.31B over the trailing year, signaling a pause relative to its dominant longer-term trajectory. Commodity flows were positive at $700.8M, aligning with a steady $32.77B one-year trend, while Digital Asset gathered $150.7M despite a negative five-day figure of $472.3M. At the category level, U.S. Large Cap – Value led with $5.58B in inflows and Non-Traditional Buffer – Equity categories added $2.25B, while U.S. Large Cap – Growth and Blend categories lost $4.58B and $2.65B respectively, underscoring a style rotation within the broader Equity outflow.

U.S. size and style flows were headlined by the iShares Core S&P 500 ETF (IVV) at $8.52B, alongside strong value-oriented demand for the Pacer US Cash Cows 100 ETF (COWZ) at $3.49B and the First Trust Rising Dividend Achievers ETF (RDVY) at $1.88B. Smaller-cap dividend strategies also gathered assets, with the First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) adding $1.03B. On the outflow side, the Vanguard S&P 500 ETF (VOO) lost $9.98B and the Invesco QQQ Trust Series I (QQQ) shed $4.37B, with the State Street SPDR S&P 500 ETF (SPY) giving back $1.26B, reinforcing the day’s broad growth-to-value category shift.

International size and style flows were modest by comparison, led by the Vanguard Total International Stock ETF (VXUS) at $195.7M, followed by Dimensional’s International Value ETF (DFIV) at $61.1M and International Core Equity 2 ETF (DFIC) at $46.5M. On the redemption side, the iShares MSCI EAFE Growth ETF (EFG) lost $96.6M, the largest outflow in the category, while the Capital Group New Geography Equity ETF (CGNG) shed $26.1M. Overall activity in ex-U.S. products remained far smaller in scale than domestic flows on the day.

Sector flows tilted toward technology, with the First Trust NASDAQ Technology Dividend Index Fund (TDIV) leading at $468.6M and the First Trust Nasdaq Semiconductor ETF (FTXL) adding $244.2M, consistent with the Information Technology category’s $935.5M inflow day. The iShares Expanded Tech Sector ETF (IGM) and State Street Technology Select Sector SPDR ETF (XLK) also gathered $203.7M and $188.1M respectively. Financials saw the heaviest redemptions, with the State Street Financial Select Sector SPDR ETF (XLF) losing $790.6M, aligning with the sector category’s $1.07B outflow. Energy and real estate exposures also weakened, as the State Street Energy Select Sector SPDR ETF (XLE) and Real Estate Select Sector SPDR ETF (XLRE) shed $422.2M and $408.0M.

Region and country flows were relatively light on the day, with the JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF (BBAX) topping inflows at just $6.4M, followed by the First Trust Latin America AlphaDEX Fund (FLN) at $2.6M. Outflows were more pronounced, led by the iShares MSCI South Korea ETF (EWY) at ($309.1M) and the JPMorgan BetaBuilders Japan ETF (BBJP) at ($102.8M). This aligns with the broader Country Specific category’s ($588.2M) outflow, reflecting a general pullback from single-country exposures relative to inflow activity elsewhere.

Thematic strategies saw a healthy inflow day led by the BNY Mellon Global Infrastructure Income ETF (BKGI) at $263.8M, followed by the ARK Innovation ETF (ARKK) at $221.6M and the Global X Defense Tech ETF (SHLD) at $217.5M, consistent with the Disruptive Tech category’s $500.2M inflow. The Amplify Cybersecurity ETF (HACK) and ARK Genomic Revolution ETF (ARKG) added $150.6M and $139.2M respectively. On the outflow side, the Global X U.S. Infrastructure Development ETF (PAVE) lost $90.5M and the Global X Copper Miners ETF (COPX) shed $62.0M, with the VanEck Gold Miners ETF (GDX) also seeing a $47.8M redemption.

Fixed Income overall gathered $1.75B, well below its $54.49B thirty-day pace but continuing a $464.82B YTD trend, led by the iShares National Muni Bond ETF (MUB) at $647.9M and the iShares 0-3 Month Treasury Bond ETF (SGOV) at $382.1M, consistent with the Municipal – Intermediate category’s $780.5M and Government Ultrashort category’s $838.9M inflows. The Vanguard Tax-Exempt Bond ETF (VTEB) added $299.7M and the State Street SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) brought in $237.0M. Long-duration Treasuries and corporate credit saw the largest redemptions, with the iShares 20+ Year Treasury Bond ETF (TLT) losing $678.6M and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) shedding $504.4M, aligning with the Corporate category’s ($789.1M) and Government Long category’s ($631.5M) outflows.

Commodity flows totaled $700.8M on the day, contributing to a $10.22B thirty-day and $32.77B one-year trend, driven almost entirely by SPDR Gold Shares (GLD) at $600.8M, consistent with the Precious Metals category’s $597.9M inflow. The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) added $88.0M and the Harbor Commodity All-Weather Strategy ETF (HGER) gathered $28.8M. On the outflow side, the iShares Gold Trust (IAU) lost a modest $24.6M and the United States Natural Gas Fund LP (UNG) shed $21.9M, both minor relative to gold’s dominant inflow.

Digital Asset products gathered $150.7M on the day despite a negative five-day trend of ($472.3M), led by the iShares Bitcoin Trust ETF (IBIT) at $183.7M and the Grayscale Zcash Trust (ZCSH) at $46.6M. Smaller inflows came from the 21shares Hyperliquid Staking ETF (THYP) at $2.4M and Bitwise Hyperliquid ETF (BHYP) at $1.9M. On the outflow side, the iShares Ethereum Trust ETF (ETHA) lost $42.9M and the ProShares Bitcoin ETF (BITO) shed $17.1M.

Non-Traditional strategies were the day’s standout asset class with $2.06B in inflows, well above recent norms and contributing to a $107.44B one-year total, powered largely by defined-outcome buffer products. The FT Vest U.S. Equity Buffer ETF – September (FSEP) led with $1.01B, followed by the FT Vest Nasdaq-100 Buffer ETF – September (QSPT) at $657.8M and the FT Vest U.S. Equity Deep Buffer ETF – September (DSEP) at $251.0M, consistent with the Buffer – Equity category’s $2.25B inflow. Leveraged products saw mixed activity, with the Direxion Daily Semiconductor Bear 3X ETF (SOXS) gathering $121.4M while the ProShares UltraPro QQQ (TQQQ) lost $260.7M and the Direxion Daily Semiconductor Bull 3X ETF (SOXL) shed $137.8M, aligning with the Leverage | Inverse – Equity category’s ($457.5M) outflow.

Recent launches skewed toward specialty and leveraged strategies, including the T-REX 2X Long ASST Daily Target ETF (ASSX) and Yorkville America 2X Long MANGOS Plus Daily Target ETF (MNGZ), both very small in AUM at launch. T. Rowe Price introduced several traditional equity products, including the T. Rowe Price Small Cap ETF (TSEE), Mid Cap Equity Research ETF (TMID), and Biotech ETF (TDNA), each starting with roughly $10M in assets. The CG Flagship Equity ETF (CGFS) launched with a comparatively larger $110.9M in AUM in the U.S. Large Cap – Blend category, while Invesco added a defined-maturity municipal offering, the BulletShares 2036 Municipal Bond ETF (BSMA), with $5.0M. Thematic entries included the 800VDC AI Datacenter Ecosystem ETF (HUMM) and Janus Henderson’s International Core Alpha ETF (JINT), the latter launching with no reported assets yet.