Financials and Small Caps Draw Fresh Equity Demand

Issuer flows were led by the largest players, with iShares gathering $13.30B on the day and extending a strong run that includes $42.54B over 5 days and $262.62B YTD, while SPDR added $5.34B despite a negative 5-day tally of ($3.86B). Vanguard stood out as the day’s largest laggard, shedding ($14.59B), which also weighed on its 5-day total of ($17.98B), though its 30-day ($62.40B) and YTD ($411.33B) figures remain firmly positive. First Trust posted a notable ($3.57B) outflow, and Invesco gave back ($1.42B), both diverging from their positive 30-day and YTD trends. Among smaller issuers, Bushido (17.67% of AUM), Humilis (11.11%), and 21Shares (8.92%) posted the largest relative inflows, while Gadsden (-11.76%) and SP Funds (-4.90%) saw the steepest relative redemptions.

Total net flows across all asset classes were negative on the day at ($799.8M), a contrast to the 5-day ($32.97B), 30-day ($108.40B), and YTD ($1,471.45B) totals, which remain strongly positive. Non-Traditional products led the outflow side with ($2.55B) redeemed, even as the category still holds a positive $8.57B over 30 days and $79.63B YTD. Digital Asset products bucked the trend with $1.28B in inflows, consistent with a positive 5-day ($934.9M) and 30-day ($4.91B) pattern. At the category level, Equity: U.S. Large Cap – Blend led with $3.30B, alongside Equity: Sector – Financials ($1.14B) and Equity: U.S. Small Cap – Blend ($992.1M), while Equity: U.S. Large Cap – Value gave back an equal and opposite ($3.30B) and Equity: U.S. Large Cap – Growth lost ($1.49B).

U.S. size and style flows were dominated by the iShares Core S&P 500 ETF (IVV), which took in $11.69B, followed by the State Street SPDR S&P 500 ETF (SPY) at $2.86B and the iShares Russell 2000 ETF (IWM) at $1.30B. On the outflow side, the Vanguard S&P 500 ETF (VOO) lost ($10.79B), nearly offsetting IVV’s gain, while the First Trust Rising Dividend Achievers ETF (RDVY) shed ($1.82B) and the Invesco QQQ Trust Series I (QQQ) gave back ($1.22B).

Ex-U.S. size and style flows were comparatively modest, led by the Vanguard Total International Stock ETF (VXUS) with $121.9M, the Fidelity Enhanced International ETF (FENI) at $80.9M, and the Schwab Fundamental International Equity ETF (FNDF) at $54.9M. Redemptions were comparatively small, with the WisdomTree International Hedged Quality Dividend Growth Fund (IHDG) losing ($15.7M) and the Sophus Capital Emerging Market Small Cap ETF (EMSC) giving back ($8.8M).

Sector flows were led by the State Street Financial Select Sector SPDR ETF (XLF), which gathered $1.06B, consistent with the broader $1.14B category-level inflow into Financials. The iShares Expanded Tech-Software Sector ETF (IGV) added $374.5M and the State Street Utilities Select Sector SPDR ETF (XLU) took in $315.0M. On the downside, the First Trust NASDAQ Technology Dividend Index Fund (TDIV) shed ($461.9M) and the iShares Semiconductor ETF (SOXX) lost ($335.7M), part of a broader semiconductor-linked outflow that also touched the First Trust Nasdaq Semiconductor ETF (FTXL) at ($249.1M).

Region and country flows were relatively light, with the JPMorgan BetaBuilders Canada ETF (BBCA) leading inflows at $52.1M, well ahead of the iShares MSCI France ETF (EWQ) at $8.8M. On the outflow side, the iShares MSCI South Korea ETF (EWY) lost ($151.8M) and the iShares MSCI Canada ETF (EWC) gave back ($133.0M), the two largest single-country redemptions of the day.

Thematic flows were led by the Roundhill Magnificent Seven ETF (MAGS), which drew $293.7M, consistent with the broader $451.5M inflow into the Disruptive Tech category. The First Trust NASDAQ Cybersecurity ETF (CIBR) added $104.8M and the ARK Innovation ETF (ARKK) took in $104.4M. On the redemption side, the ARK Genomic Revolution ETF (ARKG) lost ($38.9M) and the iShares U.S. Telecommunications ETF (IYZ) gave back ($27.6M).

Fixed Income gathered $600.2M on the day, extending a strong run that includes $13.12B over 5 days and $50.04B over 30 days. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) led inflows with $385.2M, consistent with the $376.8M category-level gain in Taxable High Yield, while the iShares 3-7 Year Treasury Bond ETF (IEI) added $125.9M. The largest redemption came from the iShares 20+ Year Treasury Bond ETF (TLT), which shed ($1.03B), aligning with the ($948.0M) outflow from the Taxable Government Long category, while the SP Funds Dow Jones Global Sukuk ETF (SPSK) lost ($215.5M).

Commodity flows were negative overall at ($66.6M), a contrast to the positive $1.36B over 5 days and $6.30B over 30 days. Gold products led inflows, with SPDR Gold Shares (GLD) gathering $79.3M and the SPDR Gold Minishares Trust (GLDM) adding $51.3M. Offsetting this, the iShares Gold Trust (IAU) lost ($121.9M) and the iShares Silver Trust (SLV) gave back ($113.0M), the two largest redemptions in the group.

Digital Asset products gathered $1.28B on the day, building on a positive 5-day tally of $934.9M and 30-day total of $4.91B. Bitcoin funds led the way, consistent with the $976.7M category-level inflow into Cryptocurrency Bitcoin, as the iShares Bitcoin Trust ETF (IBIT) took in $381.4M, the ARK 21Shares Bitcoin ETF (ARKB) added $289.1M, and the Fidelity Wise Origin Bitcoin Fund (FBTC) drew $238.8M. Ethereum products also participated, with the iShares Ethereum Trust ETF (ETHA) gathering $110.1M. Outflows were minor by comparison, led by the ProShares Bitcoin ETF (BITO) at ($21.3M).

Non-Traditional was the day’s largest asset-class outflow at ($2.55B), despite a positive 30-day total of $8.57B and $79.63B YTD. The Direxion Daily Semiconductor Bear 3X ETF (SOXS) led inflows with $293.1M, while the Innovator Power Buffer Step-Up Strategy ETF (PSTP) added $133.7M. Redemptions were dominated by single-day buffer fund resets, including the FT Vest U.S. Equity Buffer ETF – September (FSEP) at ($983.2M) and the FT Vest Nasdaq-100 Buffer ETF – September (QSPT) at ($622.1M), both likely the result of a custom rebalance rather than genuine net demand. The Direxion Daily Semiconductor Bull 3X ETF (SOXL) also lost ($654.2M), and the ProShares UltraPro QQQ (TQQQ) shed ($454.0M).

Recent launches were led by the Main Active Rotation ETF (SECA), an unclassified fund that debuted with $450.7M in AUM, alongside the CG Flagship Equity ETF (CGFS) in U.S. Large Cap – Blend at $112.5M. Several leveraged and buffer products also launched with smaller AUM, including the T-REX 2X Long ASST Daily Target ETF (ASSX) and the Yorkville America 2X Long MANGOS Plus Daily Target ETF (MNGZ), both under $300K in initial assets. The T. Rowe Price Small Cap ETF (TSEE) launched with $10.1M, and the 800VDC AI Datacenter Ecosystem ETF (HUMM) entered the Thematic Infrastructure category with $3.5M.