Small-Cap Blend Rotation Overshadows Large-Cap Outflows

Vanguard and SPDR led all issuers with $3.32B and $3.14B in single-day inflows respectively, both well above their trailing 5-Day paces, with Vanguard’s haul particularly notable against a still-strong $86.85B 30-Day and $422.94B YTD tally. iShares stood out as the day’s largest asset gatherer in reverse, shedding $4.44B, extending a rough stretch that includes a $29.70B 5-Day outflow and $40.15B 30-Day outflow despite a $221.76B positive YTD figure. Among non-mega issuers, Northern Trust ($209.1M) and Alger ($140.6M) posted the largest absolute inflows, while Avantis led outflows among smaller shops at $971.0M, a reversal from its positive 5-Day ($1.29B) and 30-Day ($6.27B) trends. On a relative basis, Brookmont (6.01% of AUM) and Avos (3.15%) saw the largest proportional inflows, while Relative Sentiment (-13.74%) and TIH Funds (-9.90%) posted the steepest relative redemptions.

Total industry flows were modest at $227.6M for the day, a sharp deceleration from the $16.28B 5-Day and $120.12B 30-Day totals, reflecting offsetting movements across asset classes. Fixed Income led with $3.52B in inflows, consistent with its strong $9.95B 5-Day and $50.44B 30-Day trends, while Equity posted a $4.05B outflow despite carrying a substantial $865.94B YTD inflow figure. Commodity ($397.5M) and Alternative ($108.7M) categories added modestly, while Multi-Asset slipped $33.1M. At the category level, U.S. Small Cap – Blend led all inflows at $1.64B alongside Government Ultrashort fixed income at $1.09B, while U.S. Large Cap – Blend suffered the steepest outflow at $2.98B, followed by Sector – Information Technology at $855.0M.

Flows within U.S. size and style were dominated by a large SPDR Portfolio S&P 500 ETF (SPYM) inflow of $5.33B alongside the iShares Russell 2000 ETF (IWM) gathering $1.84B and Vanguard S&P 500 ETF (VOO) adding $1.36B. On the outflow side, the iShares Core S&P 500 ETF (IVV) lost $6.11B and the SPDR S&P 500 ETF (SPY) shed $3.48B, with the Invesco QQQ Trust (QQQ) also down $1.25B. Smaller value-oriented funds from Avantis, including the U.S. Large Cap Value ETF (AVLV) at ($402.2M) and Small Cap Value ETF (AVUV) at ($313.8M), also registered notable redemptions.

International developed and emerging market funds saw the iShares Core MSCI International Developed Markets ETF (IDEV) lead inflows with $275.2M, followed by the Vanguard FTSE Developed Markets ETF (VEA) at $77.2M. On the outflow side, the Avantis International Small Cap Value ETF (AVDV) posted the largest redemption at $143.6M, followed by the Vanguard FTSE All-World ex-US Index Fund (VEU) at $76.3M and the Avantis Emerging Markets Equity ETF (AVEM) at $66.7M.

Sector flows were led by the SPDR S&P Biotech ETF (XBI) with $367.0M and the Financial Select Sector SPDR Fund (XLF) with $326.2M, consistent with the day’s broader Financials and Health Care category strength. On the outflow side, the VanEck Semiconductor ETF (SMH) shed $312.7M and the iShares Semiconductor ETF (SOXX) lost $290.0M, aligning with the broader $855.0M Information Technology sector outflow. The Consumer Staples Select Sector SPDR Fund (XLP) also declined by $191.9M.

Regional flows favored the iShares MSCI Brazil ETF (EWZ) at $61.0M and the JPMorgan BetaBuilders Japan ETF (BBJP) at $55.5M, alongside smaller gains for the iShares MSCI Canada ETF (EWC). The iShares MSCI South Korea ETF (EWY) posted the largest regional outflow at $113.7M, followed by the JPMorgan BetaBuilders Europe ETF (BBEU) at $47.1M and the WisdomTree European Opportunities Fund (OPPE) at $38.8M.

Thematic flows were led by the Roundhill Magnificent Seven ETF (MAGS) at $67.8M and the AB Disruptors ETF (FWD) at $30.6M. On the downside, the Global X Robotics & Artificial Intelligence ETF (BOTZ) lost $186.6M, aligning with the broader $193.7M Industrial Revolution category outflow, while the iShares U.S. Telecommunications ETF (IYZ) declined $123.3M and the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) fell $68.5M.

Fixed income inflows were led by the Vanguard Tax-Exempt Bond ETF (VTEB) at $665.4M and the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) at $408.0M, consistent with the day’s strong Municipal – Intermediate and Government Ultrashort category flows. The WisdomTree Floating Rate Treasury Fund (USFR) added $356.1M and the iShares 20+ Year Treasury Bond ETF (TLT) gathered $218.2M. On the outflow side, the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) lost $490.4M and the Schwab Municipal Bond ETF (SCMB) shed $360.5M.

Commodity flows were dominated by precious metals, with the iShares Gold Trust (IAU) gathering $148.4M, the SPDR Gold Minishares Trust (GLDM) adding $104.1M, and the iShares Gold Trust Micro ETF (IAUM) contributing $78.7M. Outflows were comparatively minor, led by the iShares Silver Trust (SLV) at $51.9M and the United States Oil Fund LP (USO) at $15.4M, consistent with the asset class’s modest $397.5M net daily inflow against a much larger $8.82B 30-Day trend.

Digital asset flows were led by Ethereum-linked products, with the iShares Ethereum Trust ETF (ETHA) gathering $148.8M and the Bitwise Ethereum ETF (ETHW) adding $29.1M, contributing to the asset class’s overall $185.8M inflow. The iShares Bitcoin Trust ETF (IBIT) saw a modest $19.2M outflow, while the ProShares Bitcoin ETF (BITO) shed $8.7M, both minor relative to the Digital Asset category’s $5.89B 30-Day inflow trend.

Leveraged and inverse products saw the Direxion Daily TSLA Bull 2X ETF (TSLL) lead inflows at $57.8M and the Direxion Daily Semiconductor Bear 3X ETF (SOXS) add $35.3M. The Direxion Daily MSCI South Korea Bull 3X ETF (KORU) posted the largest outflow at $63.7M, consistent with broader South Korea weakness seen in the regional data, followed by the ProShares Ultra S&P 500 (SSO) at $55.7M and the ProShares UltraPro Short QQQ (SQQQ) at $36.9M.

Recent launches skewed toward thematic and fixed income products, with Global X’s MLCC & Electronic Components ETF (MLCC) debuting with $1.0M in AUM in the Disruptive Tech category, alongside Yorkville’s Next Generation Memory Index ETF (NRAM) at $472.9K. MFS introduced two fixed income products, the Active Short Muni Bond ETF (MFSX) with $15.0M and the Active Short Duration Income ETF (MFSD) with $25.4M, both launched September 10. MicroSectors added several leveraged single-sector ETNs including XLPD, XLCU, and XLPU with no reported AUM yet, while VanEck’s MSCI EM Analyst Sentiment ETF (VEEM) launched with $3.7M in the Emerging Large Cap category.