Weekly Channel Summary
The Sector & Industry ETF channel, encompassing 278 funds from 59 issuers, holds approximately $1.09 trillion in assets under management. This past week, the channel attracted over $3.3 billion in net new assets. This recent influx contributes to a year-to-date total of $44.6 billion and a one-year total of $66.6 billion in net flows.
This Week’s Performance Leaders and Laggards
Communication Services led sector performance this week with a 3.36% gain, closely followed by Financials which rose 3.23%. Despite the weekly strength, Communication Services remains down over 5% year-to-date. On the other end of the spectrum, Energy (-1.16%) and Utilities (-1.06%) were the weakest performing categories. Information Technology, which dipped -0.57% this week, continues to be the standout leader on a year-to-date basis with a return of 35.88%.
Category Performance Snapshot
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Communication Services | 3.36% | -2.98% | -0.36% | -4.83% | -5.39% | 5.37% |
| Financials | 3.23% | 8.15% | 13.25% | 4.33% | 4.88% | 11.59% |
| Industrial | 2.84% | 5.41% | 11.24% | 14.61% | 17.31% | 28.39% |
| Health Care | 2.59% | 14.70% | 14.24% | 10.44% | 10.73% | 33.69% |
| Consumer Discretionary | 2.12% | 0.25% | 8.90% | -0.07% | -0.81% | 7.41% |
| Materials | 0.57% | 0.08% | 3.01% | 13.41% | 15.33% | 18.03% |
| Consumer Staples | 0.43% | 4.89% | 4.07% | 10.65% | 10.57% | 6.26% |
| Real Estate | -0.55% | 4.53% | 9.51% | 13.17% | 13.31% | 13.82% |
| Information Technology | -0.57% | -8.10% | 37.21% | 34.00% | 35.88% | 60.05% |
| Utilities | -1.06% | 4.63% | -0.57% | 7.15% | 8.41% | 15.71% |
| Energy | -1.16% | -7.87% | -9.64% | 18.38% | 20.95% | 27.18% |
Top & Bottom 5 ETFs by Weekly Performance
Defense-focused funds dominated the top performers list, with the WisdomTree Europe Defense Fund (WDEF) surging 11.91%. Several other aerospace and defense ETFs also posted strong gains for the week. In contrast, technology momentum strategies struggled significantly. The Invesco Dorsey Wright Technology Momentum ETF (PTF) was the worst performer, plunging -10.02%, while multiple semiconductor-focused funds also experienced notable declines.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| WDEF | WisdomTree Europe Defense Fund | 11.91% |
| EUAD | Select STOXX Europe Aerospace & Defense ETF | 8.67% |
| WDGF | WisdomTree Global Defense Fund | 8.26% |
| DVXF | WEBs Financial XLF Defined Volatility ETF | 7.12% |
| IDEF | iShares Defense Industrials Active ETF | 6.52% |
| Bottom Performers | ||
| PTF | Invesco Dorsey Wright Technology Momentum ETF | -10.02% |
| PSI | Invesco Semiconductors ETF | -6.05% |
| FTXL | First Trust Nasdaq Semiconductor ETF | -5.71% |
| PRN | Invesco Dorsey Wright Industrials Momentum ETF | -5.70% |
| XES | State Street SPDR S&P Oil & Gas Equipment & Services ETF | -5.68% |
Analyzing the Weekly Flows
Investors directed a net $3.3 billion into Sector & Industry ETFs over the past week, favoring cyclical and defensive plays. The Financials category was the clear favorite, attracting nearly $1.5 billion in new assets. Health Care and Industrials also saw significant demand, pulling in $1.1 billion and $921 million, respectively. Conversely, investors withdrew capital from Energy (-$782 million) and Information Technology (-$746 million), which were the only categories to post significant net outflows.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Financials | 35 | $98.57B | $1,493M | $3,045M | -$187M | -$2,296M | -$1,705M |
| Health Care | 33 | $103.30B | $1,103M | $2,858M | $320M | $1,580M | $4,433M |
| Industrial | 31 | $90.88B | $921M | $2,414M | $3,610M | $12,968M | $19,469M |
| Communication Services | 8 | $31.05B | $624M | -$417M | -$363M | -$2,806M | -$1,369M |
| Utilities | 11 | $38.59B | $310M | $495M | -$973M | -$621M | $3,063M |
| Consumer Discretionary | 15 | $33.40B | $282M | -$128M | $124M | -$2,021M | -$2,447M |
| Real Estate | 55 | $95.00B | $162M | $2,233M | $3,566M | $4,450M | $8,140M |
| Consumer Staples | 14 | $25.91B | $46M | -$898M | -$1,809M | -$1,606M | -$2,410M |
| Materials | 10 | $14.13B | -$89M | $737M | $1,495M | $2,930M | $2,839M |
| Information Technology | 34 | $497.81B | -$746M | $3,230M | $19,024M | $24,775M | $31,457M |
| Energy | 30 | $60.07B | -$782M | -$2,272M | -$3,676M | $7,248M | $5,126M |
Top & Bottom 5 ETFs by 5-Day Flow
Despite net outflows from the Information Technology category, the VanEck Semiconductor ETF (SMH) was the week’s top asset gatherer, pulling in over $1.0 billion. This suggests a targeted rotation within the tech space rather than a complete abandonment. The outflows from the broader category were driven by substantial redemptions from the iShares U.S. Technology ETF (IYW), which lost nearly $2.2 billion, and the State Street Technology Select Sector SPDR ETF (XLK), which shed $588 million.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| SMH | VanEck Semiconductor ETF | $1,059M |
| QTEC | First Trust NASDAQ-100 Technology Sector Index Fund | $912M |
| FXL | First Trust Technology AlphaDEX Fund | $886M |
| XLI | State Street Industrial Select Sector SPDR ETF | $853M |
| XLF | State Street Financial Select Sector SPDR ETF | $762M |
| Outflows | ||
| IYW | iShares U.S. Technology ETF | -$2,191M |
| XLK | State Street Technology Select Sector SPDR ETF | -$588M |
| SOXX | iShares Semiconductor ETF | -$491M |
| XLE | State Street Energy Select Sector SPDR ETF | -$437M |
| IGV | iShares Expanded Tech-Software Sector ETF | -$359M |
Note: the following fund(s) were excluded from the flow totals above because the weekly flow exceeds 75% of the fund’s AUM and may be the result of a custom rebalance: FTXN (-$743M), FXN (-$738M).
Issuer League Table Update
SPDR and Vanguard continue to dominate the sector landscape, commanding 38.73% and 24.35% of the channel’s assets, respectively. This week, SPDR led all issuers with over $3.0 billion in net inflows, buoyed by demand for its core sector funds. In stark contrast, iShares experienced the largest outflows, with investors pulling nearly $3.2 billion from its products, largely driven by the significant redemption from its flagship U.S. technology fund.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| SPDR | 28 | $421.83B | 38.73% |
| Vanguard | 12 | $265.24B | 24.35% |
| iShares | 49 | $191.38B | 17.57% |
| VanEck | 16 | $76.54B | 7.03% |
| Fidelity | 12 | $39.44B | 3.62% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| SPDR | $3,063M |
| First Trust | $1,634M |
| VanEck | $1,043M |
| Outflows | |
| iShares | -$3,180M |
| JPMorgan | -$39M |
| Tuttle Capital | -$9M |
For a deeper dive into these trends, access our FREE, in-depth Sector & Industry ETF reports in the right side panel of this page.
Disclosures
This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.
This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.
