High Beta Categories See Volumes Surge as Markets Close Down for 3rd Straight Session

Macro Summary

The ETF market saw elevated trading activity, with total volume reaching $273.9B, approximately 120% of the recent 30-day average. The day’s narrative was driven by a significant, high-volume sell-off in the Digital Asset space, which traded at 150% of its average volume while shedding over 4.4% in value. This intense turnover and downward price pressure, particularly in Bitcoin and Ethereum ETFs, points to significant de-risking in the cryptocurrency markets. Elsewhere, Non-Traditional and Commodity ETFs also saw heavy trading; commodities showed strength with notable gains on high volume, while many speculative non-traditional products faced headwinds, painting a mixed picture of risk appetite across different market segments.

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Equity

Equity ETFs traded $188.9B, or 119% of their 30-day average volume, with mixed underlying currents. High-volume selling pressure was evident in the Global Ex-U.S. Small | Mid Cap and Thematic – FinTech categories, which saw declines on heavy turnover. In contrast, the Thematic – Natural Resources space saw strong buying interest, with the category gaining on above-average volume. This dynamic was exemplified by exceptionally high activity in international value tickers like JIVE which traded down, alongside strong positive performance in the rare earth metals ETF, REMX, suggesting a rotation out of some international segments and into commodity-linked equities.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Fixed Income

Fixed Income ETFs saw a total volume of $28.0B, trading at 107% of their 30-day average. The above-average activity was led by heavy turnover in the Taxable Bank Loans and Convertible bond categories, which traded at 167% and 150% of their respective averages. However, this high volume was met with negative returns in both areas, particularly in the convertible securities ETF CWB, suggesting repositioning or potential selling pressure in these credit-sensitive segments.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Commodities

Commodity ETFs experienced strong trading, with total volume reaching $8.1B, or 129% of the 30-day average. The buying pressure was widespread, with the Focused Precious Metals category seeing a 1.40% gain on high volume. Activity was also significantly elevated in Focused Energy and Broad Market categories, which both posted gains. This was underscored by strong performance in precious metals tickers like PALL and SLV, indicating a robust day for commodity bulls.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Crypto

Digital Asset ETFs saw significant selling pressure, with total volume of $9.0B, representing 150% of the 30-day average. The surge in activity was accompanied by sharp declines, with the Bitcoin category falling 3.29% and the Ethereum category dropping 5.30% on high volume. The heavy turnover in high-activity tickers like HODL and ARKB amidst these losses indicates a strong risk-off move by investors in the leading cryptocurrency assets.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Currencies

Currency ETFs traded $80.4M in total volume, about 124% of their 30-day average. The trading day was relatively quiet, with no specific categories or tickers showing exceptional activity levels compared to their recent norms.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Alternatives

Alternative ETFs saw elevated trading with $1.3B in volume, 137% of the 30-day average. The activity was concentrated in the Volatility – Long category, which gained 1.41% on volume that was 143% of its norm. This was driven by significant turnover and positive returns in VIX futures ETFs like UVXY, indicating a clear bid for portfolio protection and a notable increase in hedging against market volatility.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Non-Traditional

Non-Traditional ETFs saw a substantial $38.3B in volume, trading at 127% of their 30-day average. The elevated activity was concentrated in leveraged and inverse products, particularly those targeting single stocks and crypto, which saw heavy turnover alongside significant price declines. For example, the Leverage | Inverse – Single Stock category fell 2.52% on high volume. This indicates a day of intense tactical trading where many leveraged bets faced considerable downside volatility, as seen in the sharp drops for high-activity tickers like CWVX and MSTU.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Multi-Asset

Multi-Asset ETFs saw modest activity, with a total volume of $131.3M, trading at 106% of their 30-day average. The only category with above-average trading was Target Risk – Global Macro, largely influenced by heightened turnover in the ALLW ETF. Otherwise, activity across the asset class remained subdued.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers