Tech Dominates Returns While Investors Buy the Energy Dip

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Weekly Channel Summary

The EQ: Sector & Industry ETF channel, encompassing 270 ETFs from 55 distinct issuers, currently manages a formidable $1,020.5B in total Assets Under Management (AUM). While the channel has experienced strong momentum with $32.00B in year-to-date inflows and an impressive $62.11B gathered over the past year, near-term activity softened. Over the trailing 5-day period, the segment experienced net outflows totaling $490M.

This Week’s Performance Leaders and Laggards

The Information Technology category charged ahead this week, delivering a sector-best 7.99% return and bringing its year-to-date (YTD) performance to a staggering 33.60%. Conversely, the Energy category faced significant headwinds, falling 5.03% over the week, though it still maintains a robust 27.88% return YTD.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Information Technology 7.99% 26.12% 28.50% 34.50% 33.60% 90.84%
Industrial 1.05% 0.28% -0.39% 14.25% 11.82% 37.32%
Real Estate 0.99% 5.24% 5.47% 9.97% 10.64% 15.45%
Comm Services 0.71% 5.54% 3.19% 8.09% 2.03% 24.46%
Materials 0.67% 0.60% 2.05% 27.77% 18.29% 39.98%
Health Care 0.40% -0.43% -3.45% 5.42% -1.66% 23.65%
Consumer Discretionary 0.24% 4.61% -1.63% 2.75% 0.52% 14.76%
Financials -0.68% 1.43% -3.15% 5.25% -0.13% 15.70%
Consumer Staples -0.75% 0.50% -4.22% 9.32% 7.99% 3.71%
Utilities -3.71% -3.47% 4.50% 2.11% 6.59% 16.47%
Energy -5.03% -2.11% 9.29% 28.48% 27.88% 53.09%

Top & Bottom 5 ETFs by Weekly Performance

The WEBS Technology XLK Defined Volatility ETF (DVXK) stood out as the absolute top performer, jumping 13.23% this week. On the downside, the Texas Capital Texas Oil Index ETF (OILT) and the Global X U.S. Natural Gas ETF (LNGX) suffered the steepest declines, shedding 7.27% and 6.81%, respectively.

Ticker Fund Name WTD Performance
Top Performers
DVXK WEBS Technology XLK Defined Volatility ETF 13.23%
CHPS Xtrackers Semiconductor Select Equity ETF 13.17%
PSI Invesco Semiconductors ETF 12.30%
FTXL First Trust Nasdaq Semiconductor ETF 12.20%
SOXX iShares Semiconductor ETF 11.76%
Bottom Performers
OILT Texas Capital Texas Oil Index ETF -7.27%
LNGX Global X U.S. Natural Gas ETF -6.81%
FCG First Trust Natural Gas ETF -6.76%
XOP State Street SPDR S&P Oil & Gas Exploration & Production ETF -6.52%
DVXE WEBs Energy XLE Defined Volatility ETF -6.40%

Analyzing the Weekly Flows

Total net flows for the sector and industry channel ended the week in negative territory at -$490M. Despite the broad market drag and weak recent performance, the Energy category proved resilient among allocators, taking in the largest sum with $1,805M in fresh capital into a category managing $70.7B. Real Estate also saw positive momentum with $249M in net inflows. At the other end of the spectrum, Health Care experienced the most severe redemptions, bleeding $619M over the 5-day period.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Energy 32 $70.7B $1,805M $1,787M $7,933M $12,920M $9,609M
Real Estate 52 $90.9B $249M ($401M) $1,365M $452M $5,506M
Materials 10 $14.0B $122M $751M $1,345M $2,363M $2,625M
Information Technology 33 $439.0B ($27M) $7,689M $12,568M $14,499M $24,630M
Consumer Staples 13 $27.1B ($84M) ($193M) ($692M) ($956M) ($1,666M)
Industrial 28 $85.1B ($103M) $1,166M $6,666M $11,098M $19,787M
Comm Services 8 $34.1B ($259M) $75M ($1,784M) ($2,349M) $598M
Utilities 11 $39.2B ($379M) ($1,334M) $801M ($606M) $3,726M
Consumer Discretionary 15 $33.6B ($591M) ($437M) ($1,267M) ($2,656M) ($1,762M)
Financials 35 $94.6B ($603M) ($214M) ($5,960M) ($2,486M) ($2,201M)
Health Care 33 $92.1B ($619M) ($985M) ($2,412M) ($280M) $1,255M

Top & Bottom 5 ETFs by 5-Day Flow

Diving into the individual fund data, the State Street Technology Select Sector SPDR ETF (XLK) acted as a primary magnet for new cash, vacuuming up $910M. Conversely, the VanEck Semiconductor ETF (SMH) and the State Street Financial Select Sector SPDR ETF (XLF) faced the heaviest selling pressure, shedding $2,211M and $814M respectively.

Ticker Fund Name 5-Day Flow
Inflows
XLK State Street Technology Select Sector SPDR ETF $910M
XLE State Street Energy Select Sector SPDR ETF $784M
FTXN First Trust Nasdaq Oil & Gas ETF $695M
XLI State Street Industrial Select Sector SPDR ETF $473M
VGT Vanguard Information Technology ETF $417M
Outflows
SMH VanEck Semiconductor ETF ($2,211M)
XLF State Street Financial Select Sector SPDR ETF ($814M)
XLY State Street Consumer Discretionary Select Sector SPDR ETF ($608M)
MISL First Trust Indxx Aerospace & Defense ETF ($552M)
XLV State Street Health Care Select Sector SPDR ETF ($247M)

Issuer League Table Update

The top of the leaderboard remains stable, with SPDR and Vanguard holding the top two spots by market share at 39.94% and 24.64%, respectively. In terms of short-term velocity, iShares outpaced the field, bringing in an industry-leading $650M in weekly inflows. Meanwhile, VanEck felt the brunt of investor withdrawals, recording the largest net outflows of the week at -$2,212M.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
SPDR 28 $407.56B 39.94%
Vanguard 12 $251.48B 24.64%
iShares 49 $172.05B 16.86%
VanEck 14 $65.58B 6.43%
Fidelity 12 $37.49B 3.67%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $650M
SPDR $570M
Vanguard $293M
Outflows
VanEck -$2,212M
Tuttle Capital -$19M
Cambria -$14M

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.