Weekly Channel Summary
The Sector & Industry channel, comprising 277 ETFs from 58 issuers, holds approximately $1.07 trillion in assets under management. A significant weekly net outflow of $19.2 billion sharply contrasted with the channel’s positive year-to-date and one-year flows, which stand at $43.0 billion and $67.7 billion, respectively. The week’s redemptions were highly concentrated in a single category, reversing some of the strong recent demand for sector-specific strategies. Despite the weekly setback, the channel has maintained substantial asset growth over longer time frames.
This Week’s Performance Leaders and Laggards
Health Care was the standout performer this week, posting a strong 5.03% gain and extending its positive momentum. In stark contrast, Information Technology and Communication Services anchored the bottom of the performance table, falling 3.46% and 3.45%, respectively. Despite its poor weekly showing, the Information Technology category remains the undisputed leader on a year-to-date basis with a remarkable 41.16% return. The divergence highlights a potential short-term rotation into more defensive sectors.
Category Performance Snapshot
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Health Care | 5.03% | 6.19% | 9.55% | 3.52% | 4.98% | 28.22% |
| Utilities | 3.00% | 1.75% | 2.16% | 8.40% | 8.75% | 17.05% |
| Real Estate | 2.57% | 1.30% | 11.45% | 12.05% | 12.37% | 14.77% |
| Consumer Staples | 1.35% | -0.30% | 3.32% | 8.39% | 9.03% | 7.20% |
| Energy | 1.14% | -8.73% | -10.06% | 23.89% | 23.00% | 33.34% |
| Financials | 0.57% | 4.07% | 10.43% | -0.41% | 1.43% | 11.38% |
| Industrial | 0.33% | 5.13% | 8.08% | 12.89% | 15.16% | 29.51% |
| Materials | -0.10% | 2.77% | 5.38% | 13.80% | 15.27% | 24.21% |
| Consumer Discretionary | -2.75% | -3.80% | 3.37% | -6.21% | -3.82% | 7.61% |
| Communication Services | -3.45% | -8.28% | -4.04% | -9.39% | -9.07% | 3.53% |
| Information Technology | -3.46% | 3.82% | 40.69% | 38.98% | 41.16% | 70.11% |
Top & Bottom 5 ETFs by Weekly Performance
Leading the pack on performance, the State Street SPDR S&P Biotech ETF (XBI) surged 7.83%, aligning with the broader strength seen across the Health Care category. This performance underscores investor interest in the biotechnology sub-sector. On the other end of the spectrum, semiconductor-focused funds struggled, with the VanEck Fabless Semiconductor ETF (SMHX) declining by 6.59%. The week’s worst performer, however, was the WisdomTree Asia Defense Fund (WDAF), which fell 9.65%.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| XBI | State Street SPDR S&P Biotech ETF | 7.83% |
| PTH | Invesco Dorsey Wright Healthcare Momentum ETF | 7.04% |
| JETS | U.S. Global Jets ETF | 6.39% |
| PSCH | Invesco S&P SmallCap Health Care ETF | 6.09% |
| MEDI | Harbor Health Care ETF | 6.00% |
| Bottom Performers | ||
| WDAF | WisdomTree Asia Defense Fund | -9.65% |
| SMHX | VanEck Fabless Semiconductor ETF | -6.59% |
| DVXC | WEBs Communication Services XLC Defined Volatility ETF | -6.54% |
| WDGF | WisdomTree Global Defense Fund | -6.52% |
| WDEF | WisdomTree Europe Defense Fund | -6.13% |
Analyzing the Weekly Flows
Sector ETFs experienced a massive net outflow of $19.2 billion, driven almost entirely by historic redemptions from the Information Technology category, which shed $18.1 billion. This move suggests significant profit-taking or de-risking in the high-flying tech space. Bucking the trend, the Real Estate category attracted the most new capital, pulling in $1.2 billion in net inflows. Health Care also saw positive investor interest, adding $527 million for the week.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Real Estate | 55 | $95.03B | $1,182M | $2,881M | $3,570M | $4,289M | $7,793M |
| Health Care | 33 | $97.41B | $527M | $646M | -$385M | $477M | $3,448M |
| Utilities | 11 | $38.57B | $221M | $277M | -$1,032M | -$931M | $3,017M |
| Consumer Staples | 14 | $26.16B | $113M | -$1,060M | -$2,066M | -$1,651M | -$2,805M |
| Consumer Discretionary | 15 | $32.17B | -$207M | -$147M | -$1,084M | -$2,303M | -$2,528M |
| Materials | 10 | $14.18B | -$222M | $597M | $1,938M | $3,018M | $2,930M |
| Financials | 35 | $95.87B | -$373M | $395M | -$3,327M | -$3,788M | -$2,147M |
| Communication Services | 8 | $30.37B | -$606M | -$1,236M | -$983M | -$3,430M | -$1,992M |
| Energy | 32 | $63.60B | -$871M | -$1,876M | $38M | $9,763M | $7,231M |
| Industrial | 31 | $87.44B | -$886M | $1,759M | $2,724M | $12,047M | $18,997M |
| Information Technology | 33 | $488.83B | -$18,078M | $7,254M | $19,198M | $25,520M | $33,730M |
Top & Bottom 5 ETFs by 5-Day Flow
The week’s flow story was dominated by two specific technology funds experiencing colossal outflows. The VanEck Semiconductor ETF (SMH) lost $8.8 billion, while the State Street Technology Select Sector SPDR ETF (XLK) saw redemptions of $8.6 billion. Interestingly, the top inflow fund was also a tech product, the iShares U.S. Technology ETF (IYW), which gathered nearly $2.3 billion, indicating a significant rotation among different technology exposures rather than a complete exit.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| IYW | iShares U.S. Technology ETF | $2,297M |
| SCHH | Schwab U.S. REIT ETF | $975M |
| XBI | State Street SPDR S&P Biotech ETF | $483M |
| VNQ | Vanguard Real Estate ETF | $324M |
| VGT | Vanguard Information Technology ETF | $286M |
| Outflows | ||
| SMH | VanEck Semiconductor ETF | -$8,794M |
| XLK | State Street Technology Select Sector SPDR ETF | -$8,608M |
| XLF | State Street Financial Select Sector SPDR ETF | -$829M |
| RSPT | Invesco S&P 500 Equal Weight Technology ETF | -$728M |
| XAR | State Street SPDR S&P Aerospace & Defense ETF | -$697M |
Issuer League Table Update
SPDR and Vanguard continue to dominate the sector landscape, commanding 38.3% and 24.4% of the channel’s market share, respectively. The week’s massive outflows were concentrated among a few issuers, with SPDR experiencing $11.2 billion in redemptions and VanEck seeing $9.0 billion exit its funds, largely tied to their flagship tech ETFs. In contrast, iShares led all issuers in asset gathering, successfully attracting over $1.2 billion in net new assets for the week.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| SPDR | 28 | $409.73B | 38.30% |
| Vanguard | 12 | $261.30B | 24.43% |
| iShares | 49 | $191.03B | 17.86% |
| VanEck | 16 | $75.55B | 7.06% |
| Fidelity | 12 | $38.77B | 3.62% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| iShares | $1,261M |
| Schwab | $975M |
| Vanguard | $746M |
| Outflows | |
| SPDR | -$11,205M |
| VanEck | -$8,971M |
| Invesco | -$1,020M |
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.
