ETF Market Pulse: Commodities and Fixed Income Dominate Daily ETF Flows

Issuer League Tables

Market activity on February 23 was characterized by a heavy concentration of flows among the industry’s largest issuers, with iShares and Vanguard leading the absolute inflow leaderboard. iShares recorded a substantial $2,953M in daily net new money, reinforcing its dominant position with a 1-year flow total exceeding $406B. Conversely, Fidelity faced significant absolute outflows of $3,167M, representing a -2.08% contraction relative to its total AUM. Smaller issuers showed higher relative volatility, with Transamerica and SonicShares posting the highest 1-day flows as a percentage of AUM at 20.04% and 7.04% respectively.

Issuer Flows (Absolute)

Issuer Flows (Relative)

Daily ETF Flow Analysis

The total net inflow for the day reached $4,663M, a figure largely driven by strong activity in Fixed Income and Commodity products. Fixed Income led all asset classes with $3,655M in daily flows, continuing its consistent 1-month trend where it attracted over $53B. Commodities followed with $2,093M in net inflows, while the Equity asset class saw a daily outflow of $1,198M. Digital Assets maintained a modest $86M inflow for the day, though it remains in negative territory on both a 3-month and YTD basis.

Asset Class Flows

Top 10 Category Flows

Bottom 10 Category Flows

U.S. Size & Style

The U.S. Size and Style segment experienced a broad net outflow of $3,947M, with high-profile broad market products like the IWM and SPY accounting for a combined $2,053M in redemptions. Small Cap Blend was particularly soft, shedding $1,018M for the day across the category. VOO bucked the larger trend with an inflow of $1,401M, maintaining its significant momentum which has resulted in over $351B in inflows over the past year. Value styles also saw mixed results, with Large Cap Value losing $1,924M overall, while the VTV posted a $110M gain.

Size & Style ex-U.S.

International equity strategies drew $1,617M in net new assets, led by Global Ex-U.S. Large Cap Blend funds which attracted $769M. Emerging Large Cap funds also showed strength with $543M in flows during the current session. Ticker-level leaders included the IEFA with $528M and AVEM with $430M in net gains. Conversely, Fidelity’s suite of international factor funds dominated the laggard list, with FIVA, FIDI, and FDEV collectively shedding $239M on the day.

Sector & Industry

Sector-level flows were relatively flat at $70M total, though divergence between industries was stark. Energy and Information Technology led with $147M and $138M in inflows respectively, while Financials and Health Care faced daily redemptions totaling $440M. The SMH was a standout leader with $125M in inflows, while regional bank exposure was pressured, as seen in the $173M outflow from KRE. Real Estate also saw positive movement, led primarily by IYR which posted $85M in daily net flows.

Region & Country

The Region and Country segment posted a total inflow of $903M, with Asia-Pacific and Eurozone exposures driving the bulk of investor activity. EWY was the single largest country-specific gainer, recording $536M in daily inflows, while Japan exposure attracted another $369M via EWJ. Latin America funds also drew $178M in net flows, contrasting with the VPL, which faced a substantial $351M daily outflow. Eurozone equities remain a major long-term theme, having captured over $14.6B in flows so far this year.

Thematic

Thematic equity flows were positive overall at $105M, with Infrastructure and Industrial themes continuing to capture investor interest. GRID led the space with $105M in daily inflows, followed closely by telecom exposure in IYZ with $101M. Conversely, redemptions were heavy in the internet and gold mining sub-sectors, with FDN shedding $107M and GDX losing $74M. Disruptive Tech remains the dominant long-term thematic winner, boasting over $19.6B in inflows over the trailing 1-year period.

Fixed Income

Fixed Income led all asset classes with $3,655M in daily flows, with intermediate duration corporate and aggregate products seeing the most action. LQD was the session leader with $379M, while aggregate market funds BND and AGG added a combined $444M. Taxable core categories remain extremely popular, drawing over $67B in the past year alone. On the negative side, the PAAA saw a significant $522M redemption, a sharp outlier compared to the broader inflow trend across corporate debt.

Commodity

Commodity products saw $2,093M in net inflows, with activity almost entirely concentrated in precious metals. GLD recorded massive interest with $1,254M in daily flows, while SLV added $810M. This daily surge accounts for the vast majority of the week’s $1,289M total, suggesting a rapid shift in positioning. Minority outflows occurred in physical metal alternatives, with SIVR and IAU shedding a combined $153M in redemptions.

Cryptocurrency

The cryptocurrency segment posted a net inflow of $86M for the day, providing a break from a negative 1-month trend where the class shed over $3.3B. IBIT was the primary destination for new capital, recording $64M, while FBTC followed with $24M in inflows. Despite the daily positive result, Bitcoin funds remain in the red for the YTD period with a net $2,689M outflow. Total asset class AUM currently stands at $101.56B, reflecting the scale of these digital exposures despite recent redemption volatility.

Non-Traditional

The Non-Traditional segment saw $990M in net inflows, with activity heavily favoring synthetic income and buffer equity strategies. Leverage and inverse equity categories saw net redemptions of $224M, led by SQQQ and AGQ. On the positive side, TQQQ added $135M, and Innovator’s suite saw strength in the UFEB and PFEB funds. This daily action is part of a broader trend that has seen synthetic income products capture over $70B in inflows during the past 12 months.

Recent Launches

The ETF market has seen 294 new products launch over the past three months, reflecting continued innovation and issuer competition. Recent daily activity highlights new leveraged single-stock products and focused thematic fixed income entries from various brands. BNY Mellon stands out with several new high-AUM municipal and core debt entries, contributing to their $4.8B in YTD launch capital. The shift toward active management is clear, with actively managed launches amassing $9.45B in assets YTD compared to just $0.08B for passive alternatives.