Market Overview (Week Ending September 5, 2025)
The U.S. Sector & Industry ETF channel, comprising 260 ETFs from 52 issuers, currently holds $816 billion in Assets Under Management. The past week saw a net inflow of $1.18 billion, a positive sign amidst broader market uncertainty. Year-to-date flows remain negative at ($2.16 billion), though the 1-year flow figure shows a net positive of $4.11 billion, indicating resilient long-term investor interest in sector-specific strategies.
Weekly Performance Recap: Communication Services Surges, Energy Falters
It was a week of divergence across the GICS sectors. Communication Services led the pack with a strong +3.52% week-to-date return, driven by notable strength in biotech and media names. In stark contrast, the Energy sector was the clear laggard, posting a significant -2.17% loss for the week as oil prices retreated.
| Sector Performance | ||||
|---|---|---|---|---|
| Sector | WTD | 1M | 3M | YTD |
| Communication Services | +3.52% | +7.72% | +13.29% | +20.61% |
| Health Care | +1.74% | +6.89% | +7.86% | +5.65% |
| Consumer Discretionary | +1.68% | +7.28% | +11.03% | +7.81% |
| Information Technology | +1.02% | +2.99% | +12.61% | +13.71% |
| Real Estate | +0.23% | +3.25% | +4.29% | +6.25% |
| Consumer Staples | +0.12% | +1.28% | +1.22% | +3.66% |
| Industrial | -0.13% | +1.93% | +9.15% | +19.02% |
| Materials | -0.25% | +5.10% | +9.23% | +11.89% |
| Financials | -0.59% | +4.27% | +9.30% | +12.13% |
| Utilities | -0.96% | -2.95% | +4.64% | +12.94% |
| Energy | -2.17% | +3.27% | +9.61% | +1.46% |
| Top Inflows | ||
| Ticker | Name | Flow |
|---|---|---|
| SMH | VanEck Semiconductor ETF | +$592M |
| XLY | Consumer Discretionary Select Sector SPDR.. | +$549M |
| XLF | Financial Select Sector SPDR Fund | +$436M |
| XLP | Consumer Staples Select Sector SPDR Fund | +$270M |
| XLV | Health Care Select Sector SPDR Fund | +$233M |
| Bottom Outflows | ||
| Ticker | Name | Flow |
| IGV | iShares Expanded Tech-Software Sector ETF | ($716M) |
| EUAD* | Select STOXX Europe Aerospace & Defense ETF | ($246M) |
| XLE | Energy Select Sector SPDR Fund | ($182M) |
| XRT | SPDR S&P Retail ETF | ($156M) |
| ITA | iShares U.S. Aerospace & Defense ETF | ($129M) |
* Large flow activity may be indicative of a fund rebalance or heartbeat trade.
Weekly Flow Summary: Investors Buy the Dip in Financials, Flee Industrials
Despite negative performance, investors allocated heavily to the Financials sector, which pulled in a substantial +$504 million in net new assets over the past five days. Following were Consumer Discretionary (+$382M) and Health Care (+$371M). On the other end of the spectrum, the Industrial sector saw the most significant redemptions, with outflows totaling ($443 million), followed by Energy with ($255 million) in outflows.
| Sector Flows | |||||
|---|---|---|---|---|---|
| Sector | # of ETFs | AUM | WTD | 1M | YTD |
| Financials | 32 | $102.1B | +$504M | +$1,995M | +$2,508M |
| Consumer Discretionary | 14 | $35.8B | +$382M | +$875M | ($1,541M) |
| Health Care | 31 | $80.2B | +$371M | ($81M) | ($6,874M) |
| Consumer Staples | 13 | $27.9B | +$243M | ($133M) | ($159M) |
| Communication Services | 7 | $34.1B | +$215M | +$33M | +$2,732M |
| Real Estate | 53 | $81.2B | +$208M | +$229M | +$656M |
| Information Technology | 31 | $305.3B | +$55M | +$1,759M | +$4,737M |
| Materials | 10 | $10.0B | +$34M | +$11M | ($705M) |
| Utilities | 11 | $34.9B | ($147M) | +$508M | +$4,765M |
| Energy | 29 | $44.9B | ($255M) | ($1,009M) | ($9,807M) |
| Industrial | 27 | $59.0B | ($443M) | ($104M) | +$1,523M |
| Top & Bottom 5 Flows (5-Day) | ||
|---|---|---|
| Top Inflows | ||
| Ticker | Name | Flow |
| SMH | VanEck Semiconductor ETF | +$592M |
| XLY | Consumer Discretionary Select Sector SPDR.. | +$549M |
| XLF | Financial Select Sector SPDR Fund | +$436M |
| XLP | Consumer Staples Select Sector SPDR Fund | +$270M |
| XLV | Health Care Select Sector SPDR Fund | +$233M |
| Bottom Outflows | ||
| Ticker | Name | Flow |
| IGV | iShares Expanded Tech-Software Sector ETF | ($716M) |
| EUAD* | Select STOXX Europe Aerospace & Defense ETF | ($246M) |
| XLE | Energy Select Sector SPDR Fund | ($182M) |
| XRT | SPDR S&P Retail ETF | ($156M) |
| ITA | iShares U.S. Aerospace & Defense ETF | ($129M) |
* Large flow activity may be indicative of a fund rebalance or heartbeat trade.
Issuer and Product Landscape
The issuer landscape remains concentrated, with the top three firms—SPDR (42.92%), Vanguard (25.77%), and iShares (15.97%)—commanding over 84% of the sector ETF market share. SPDR was the clear winner in asset gathering this week, attracting over $1.5 billion in net inflows. The product landscape continues to expand, with 21 new ETFs launching in the past three months, signaling ongoing innovation and investor demand for targeted sector exposure.
| Weekly Issuer Flow Leaders: Top Inflows | ||||
|---|---|---|---|---|
| Issuer | AUM | Market Share | WTD | WTD (% AUM) |
| SPDR | $350.03B | 42.92% | +$1,555M | +0.44% |
| VanEck | $30.13B | 3.69% | +$598M | +1.98% |
| Vanguard | $210.12B | 25.77% | +$205M | +0.10% |
| Weekly Issuer Flow Leaders: Top Laggards | ||||
|---|---|---|---|---|
| Issuer | AUM | Market Share | WTD | WTD (% AUM) |
| iShares | $130.28B | 15.97% | ($944M) | -0.72% |
| Tuttle Capital | $1.03B | 0.13% | ($246M) | -23.85% |
| Fidelity | $31.26B | 3.83% | ($28M) | -0.09% |
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.
