Fixed Income Leads as Semiconductors Reverse

Flow leadership remained concentrated among the largest issuers, with iShares pulling in $4.15B for the day and extending a 30-day haul of $72.10B and YTD total of $323.56B, while Vanguard added $2.56B daily on a 5-day sum of $24.55B. WisdomTree ($832.3M) and T. Rowe Price ($721.5M) stood out among mid-sized issuers, with T. Rowe Price’s one-day intake nearly double its 5-day figure of $399.5M. On the outflow side, State Street / SPDR shed $2.02B for the day despite a positive 30-day total of $16.82B, while Direxion lost $464.7M daily and remains negative across 5-day (-$536.4M), 30-day (-$618.6M) and YTD (-$11.31B) windows. On a relative basis, Vegashares (7.14% of AUM) and Monarch (3.79%) led percentage inflows among smaller issuers, while Hennessy (-35.37%) and Brookstone (-6.32%) posted the steepest percentage redemptions.

Total ETF flows reached $5.74B for the day, extending a 1-week total of $55.89B and a 30-day sum of $158.07B against YTD inflows of $1,569.90B. Fixed Income led all asset classes with $3.79B in daily inflows, consistent with its strong 1-week ($30.06B) and 30-day ($64.80B) trends, while Equity added a comparatively modest $1.44B despite a $75.83B 30-day total. Commodity ($351.1M) and Alternative ($383.6M) categories posted smaller but positive daily flows, while Non-Traditional funds saw a net outflow of $504.8M despite a positive 1-week figure of $2.60B. At the category level, U.S. Large Cap – Blend led with $2.37B, followed by Taxable Ultrashort fixed income ($908.5M) and Global Ex-U.S. Large Cap – Blend ($801.7M), while U.S. Large Cap – Growth (-$1.11B) and Sector Information Technology (-$1.06B) were the largest laggards.

Large-cap blend exposure dominated U.S. size and style flows, led by the iShares Core S&P 500 ETF (IVV) at $2.70B, followed by the T. Rowe Price Capital Appreciation Equity ETF (TCAF) with $684.4M and the Vanguard S&P 500 ETF (VOO) at $536.3M. On the outflow side, the State Street SPDR S&P 500 ETF (SPY) lost $2.27B, and the Invesco QQQ Trust (QQQ) shed $1.16B, with the State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) down $408.8M. These contrasting flows between core large-cap vehicles underscore sizable rotation within similar exposures on the day.

Ex-U.S. developed market blend funds attracted the largest inflows, led by the iShares MSCI EAFE ETF (EFA) with $311.7M and the iShares Core MSCI International Developed Markets ETF (IDEV) at $214.7M. Smaller inflows went to the Nuveen ESG International Developed Markets Equity ETF (NUDM) at $70.9M and the iShares International Country Rotation Active ETF (CORO) at $53.4M. On the outflow side, the iShares MSCI Intl Quality Factor ETF (IQLT) lost $44.8M and the iShares MSCI EAFE Value ETF (EFV) gave back $31.4M, both modest relative to the category’s $801.7M daily inflow total.

Sector flows were mixed, with the State Street Industrial Select Sector SPDR ETF (XLI) leading inflows at $331.4M, followed by the State Street Technology Select Sector SPDR ETF (XLK) with $129.9M and the State Street SPDR S&P Biotech ETF (XBI) at $104.2M. Semiconductor exposure saw the heaviest redemptions, with the VanEck Semiconductor ETF (SMH) losing $725.2M and the iShares Semiconductor ETF (SOXX) down $530.0M. The State Street Communication Services Select Sector SPDR ETF (XLC) and Financial Select Sector SPDR ETF (XLF) also posted outflows of $341.9M and $192.5M respectively, aligning with the broader Sector Information Technology category outflow of $1.06B.

Regional flows were comparatively light, led by the iShares MSCI Brazil ETF (EWZ) at $118.1M and the iShares MSCI Japan ETF (EWJ) at $74.3M, with the JPMorgan BetaBuilders Canada ETF (BBCA) adding $30.3M. On the outflow side, the iShares Latin America 40 ETF (ILF) lost $87.5M, the largest redemption in the category, while the iShares MSCI Malaysia ETF (EWM) and iShares MSCI Germany ETF (EWG) saw smaller declines of $16.3M and $12.4M respectively.

Thematic flows were led by the First Trust NASDAQ Cybersecurity ETF (CIBR) at $130.9M, followed by the ARK Innovation ETF (ARKK) with $94.2M and the ARK Next Generation Technology ETF (ARKW) at $73.2M. The Roundhill Memory ETF (DRAM) posted the largest thematic outflow at $183.5M, followed by the Alger AI Enablers & Adopters ETF (ALAI) at $70.6M and the Global X Defense Tech ETF (SHLD) at $37.9M. Thematic activity remained modest relative to broader equity and fixed income categories on the day.

Fixed Income was the day’s leading asset class at $3.79B, driven by the WisdomTree Floating Rate Treasury Fund (USFR) at $817.4M and the Dimensional Ultrashort Fixed Income ETF (DUSB) with $462.2M, consistent with the category-level $908.5M inflow into Taxable Ultrashort funds. The iShares 0-3 Month Treasury Bond ETF (SGOV) added $386.7M and the iShares 20+ Year Treasury Bond ETF (TLT) gained $379.4M, aligning with the $591.3M inflow into Government Long duration. On the outflow side, the ProShares GENIUS Money Market ETF (IQMM) lost $676.8M and the State Street SPDR Bloomberg High Yield Bond ETF (JNK) gave back $314.3M, consistent with the High Yield category’s $398.1M outflow. The F/m Compoundr U.S. Aggregate Bond ETF (CPAG) saw a $146.2M outflow equal to roughly 100% of its AUM (may be the result of a custom rebalance).

Commodity flows totaled $351.1M for the day, led by the SPDR Gold Minishares Trust (GLDM) at $174.0M and the United States Oil Fund LP (USO) with $146.7M, followed by the SPDR Gold Shares (GLD) at $76.8M. The abrdn Physical Silver Shares ETF (SIVR) led outflows at $23.2M, followed by the Goldman Sachs Physical Gold ETF (AAAU) at $20.6M, a muted result against the category’s $2.85B 30-day inflow trend.

Digital Asset flows added $235.3M on the day, modest relative to the 30-day total of $3.65B, with the iShares Bitcoin Trust ETF (IBIT) leading at $158.2M and the Vaneck BNB ETF (VBNB) adding $97.5M. The Fidelity Wise Origin Bitcoin Fund (FBTC) gained $29.3M while the Grayscale Zcash Trust (ZCSH) posted the largest outflow at $26.9M. Ethereum-linked products also saw redemptions, with the iShares Ethereum Trust ETF (ETHA) down $20.1M and the Fidelity Ethereum Fund ETF (FETH) down $17.3M.

Non-Traditional funds saw a net outflow of $504.8M on the day despite a positive 1-week total of $2.60B, with the leveraged/inverse semiconductor space showing stark divergence: the Direxion Daily Semiconductor Bear 3X ETF (SOXS) gained $200.6M while the Direxion Daily Semiconductor Bull 3X ETF (SOXL) lost $401.1M, consistent with the $357.9M outflow from the Leverage | Inverse – Single Stock category. The Amplify CWP Enhanced Dividend Income ETF (DIVO) added $116.8M and the Goldman Sachs S&P 500 Premium Income ETF (GPIX) gained $38.0M. Other leveraged single-stock products also saw redemptions, including the Direxion Daily MU Bull 2X ETF (MUU) down $77.1M and the Direxion Daily TSLA Bull 2X ETF (TSLL) down $68.8M.

Recent launches spanned a mix of thematic, international, and fixed income categories, led by the Corgi Mangos ETF (MN), a Disruptive Tech thematic fund with $21.5M in AUM since its October 2 inception. The NYLIM MacKay Muni High Income ETF (MMHI) launched with $25.0M in municipal high-yield exposure, while the Logan Capital International ETF (LCIV) debuted with $19.0M in global ex-U.S. large-cap blend assets. Smaller launches included the Xtrackers MSCI EAFE 50% Hedged Equity ETF (EAFH) at $5.0M and the Global X LLM ETF (LLMA) at $1.0M, alongside sub-$1M starts for the Roundhill S&P 500 Target 10,000 2030 ETF (XX) and the Rareview Bloomberg Commodity Index ETF (BCOM).