Semiconductor ETFs Lead as Leveraged Equity Demand Surges

Issuer flows were led in absolute terms by the largest brands, with Vanguard gathering $3.78B, iShares adding $3.44B, and State Street SPDR pulling in $2.55B, all broadly consistent with their multi-billion-dollar 30-day and YTD trends. Direxion stood out among non-mega issuers with $1.54B in single-day inflows, powered by leveraged equity products and far outpacing its $9.00B 30-day and modest $289.9M YTD totals, signaling an unusually strong single-day push. On the relative side, Synera Funds led all issuers with inflows equal to 35.26% of its $81.1M AUM base, while Alger added $610.9M, a gain of 5.89% of its $10.37B AUM. Laggards included ProShares (-$139.1M), Defiance (-$119.1M), and 21Shares (-$110.3M), the latter also showing negative 5-day, 30-day, and YTD flows of -$102.0M, -$291.9M, and -$575.1M respectively, reflecting a more sustained pattern of redemptions.

Total flows across all asset classes reached $16.62B for the day, building on a $44.08B 5-day total and a $223.81B 30-day figure that keeps the YTD sum near $1.71T. Equity products dominated with $9.74B in net inflows, consistent with their $26.57B weekly and $118.69B monthly pace, while Fixed Income added a substantial $5.83B, also tracking its $655.60B 1-year trend. Non-Traditional products gathered $2.10B, lifted by leveraged equity categories, while Digital Asset products saw net outflows of $751.8M, driven largely by cryptocurrency redemptions. Among categories, U.S. Large Cap – Blend led with $3.72B and Municipal – Intermediate fixed income gathered $2.03B, while Cryptocurrency – Bitcoin led outflows at $641.2M and Precious Metals commodities shed $447.2M.

Within U.S. size and style, State Street SPDR S&P 500 ETF (SPY) led with $1.60B, followed by Vanguard S&P 500 ETF (VOO) at $803.7M and Invesco QQQ Trust Series I (QQQ) at $669.2M, while the Alger Concentrated Equity ETF (CNEQ) added $610.9M. On the outflow side, iShares Core S&P 500 ETF (IVV) shed $345.2M, and Dimensional’s US Marketwide Value ETF (DFUV) and US Large Cap Value ETF (DFLV) lost $254.5M and $242.2M respectively. The American Century U.S. Quality Value ETF (VALQ) recorded a $138.6M outflow (may be the result of a custom rebalance), representing a sizable share of its AUM base.

International size and style flows were comparatively modest, led by Vanguard Total International Stock ETF (VXUS) with $334.7M, followed by iShares MSCI Emerging Markets ex China ETF (EMXC) at $54.6M. On the outflow side, iShares MSCI EAFE Value ETF (EFV) led with a $94.8M redemption, while Lazard International Dynamic Equity ETF (IDEQ) lost $15.1M. Flows across this category were generally smaller in magnitude compared to domestic size and style funds.

Sector flows were led by the VanEck Semiconductor ETF (SMH) with $706.2M and the State Street Consumer Staples Select Sector SPDR ETF (XLP) at $562.2M, consistent with Consumer Staples’ $568.2M category-level inflow. On the outflow side, the iShares Semiconductor ETF (SOXX) shed $570.4M, offsetting much of SMH’s gain within the same sector, while iShares Expanded Tech-Software Sector ETF (IGV) lost $326.1M. The State Street SPDR S&P Regional Banking ETF (KRE) and Energy Select Sector SPDR ETF (XLE) also saw notable redemptions of $318.3M and $287.2M, respectively, aligning with broader Financials and Energy category outflows of $416.4M and $140.1M.

Regional flows were comparatively modest, with the iShares MSCI Japan ETF (EWJ) leading at $127.5M and iShares Asia 50 ETF (AIA) adding $69.4M. The Synera Funds Takumi+ ETF (SMTJ) gathered $28.6M, a sizable gain relative to its small AUM base. On the outflow side, Vanguard FTSE Europe ETF (VGK) led with $147.6M in redemptions, consistent with the Eurozone category’s $149.5M net outflow, while iShares MSCI Chile ETF (ECH) shed $21.9M.

Thematic flows were led by the Tema Electrification ETF (VOLT), which gathered $198.1M, equal to over 5% of its AUM, alongside the VanEck Gold Miners ETF (GDX) at $82.0M and Global X U.S. Infrastructure Development ETF (PAVE) at $46.8M. On the outflow side, the Roundhill Magnificent Seven ETF (MAGS) lost $121.9M, while Global X Lithium & Battery Tech ETF (LIT) and First Trust RBA American Industrial Renaissance ETF (AIRR) shed $73.3M and $57.7M, respectively.

Fixed Income gathered $5.83B overall, led by the iShares National Muni Bond ETF (MUB) at $865.5M and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at $625.2M, consistent with the Municipal – Intermediate category’s $2.03B inflow and Taxable – Corporate’s $716.9M gain. The iShares 7-10 Year Treasury Bond ETF (IEF) added $547.1M and Vanguard Tax-Exempt Bond ETF (VTEB) gathered $476.6M. On the outflow side, iShares 20+ Year Treasury Bond ETF (TLT) shed $433.0M and ProShares GENIUS Money Market ETF (IQMM) lost $306.3M, while Invesco Senior Loan ETF (BKLN) redeemed $217.6M, aligning with the Bank Loans category’s $273.5M outflow.

Commodity products saw net outflows of $417.1M for the day, extending a negative $1.74B weekly and $832.2M monthly trend despite a positive $8.18B YTD figure. SPDR Gold Shares (GLD) led outflows with $519.5M, reflecting much of the Precious Metals category’s $447.2M net redemption, while iShares Gold Trust (IAU) lost $49.5M. Smaller gold-linked products offset some of this, with iShares Gold Trust Micro ETF (IAUM) adding $64.5M and SPDR Gold Minishares Trust (GLDM) gathering $32.0M.

Digital Asset products recorded net outflows of $751.8M, contrasting with a modestly positive 5-day flow of $40.5M and a $2.94B YTD gain. The iShares Bitcoin Trust ETF (IBIT) led outflows with $254.1M, followed by Fidelity Wise Origin Bitcoin Fund (FBTC) at $217.5M and ARK 21Shares Bitcoin ETF (ARKB) at $109.4M, consistent with the Cryptocurrency – Bitcoin category’s $641.2M net redemption. On the inflow side, Grayscale Zcash Trust (ZCSH) gathered $14.2M and Franklin XRP ETF (XRPZ) added $3.5M.

Non-Traditional products gathered $2.10B overall, led by a notable $1.60B inflow into the Direxion Daily Semiconductor Bull 3X ETF (SOXL), consistent with the Leverage | Inverse – Equity category’s $1.94B gain. The Direxion Daily Semiconductor Bear 3X ETF (SOXS) also added $291.4M, while ProShares UltraPro QQQ (TQQQ) gathered $139.3M. On the outflow side, JPMorgan NASDAQ Equity Premium Income ETF (JEPQ) lost $395.7M and Direxion Daily MU Bull 2X ETF (MUU) shed $156.0M, with Direxion Daily TSLA Bull 2X ETF (TSLL) losing $114.0M, consistent with the Leverage | Inverse – Single Stock category’s $421.3M net redemption.

Recent launches were dominated by small, early-stage funds across unclassified and niche categories, with most carrying AUM under $1.0M at inception. Notable exceptions include Schwab International Bond ETF (SCIN), which launched with $25.0M in Fixed Income: Taxable – International USD, and Thrivent Large Cap Stock ETF (TLCE), which debuted with $19.9M in the U.S. Large Cap – Blend category. Thrivent Securitized Income ETF (TSIE) launched with $65.3M in Fixed Income: Taxable – Securitized, though its subsequent $40.2M single-day inflow appears tied to a custom rebalance rather than organic demand. Tema and Tuttle Capital each introduced multiple small, thematic or income-oriented products, including Tema Commodity Infrastructure ETF (THRU) and Tuttle Capital Innovation 100 Income & Hedge ETF (QQDH), both launching with sub-$1M AUM.