Large-Cap Blend Funds Dominate as Tech Sector Retreats

Flows on the day were heavily concentrated among the largest issuers, with State Street pulling in $14.32B and iShares adding $7.69B, both consistent with their outsized 5-Day ($27.89B and $47.34B, respectively) and YTD ($113.57B and $294.16B) totals. Invesco added $3.66B on the day even as its 5-Day figure remains negative at ($9.55B), while Vanguard posted the largest single-day outflow among majors at ($8.28B), a sharp reversal from its $381.18B YTD haul. Among non-mega issuers, Franklin stood out with a $569.1M inflow, driven largely by its Taiwan-focused fund, while ARK recorded the largest non-mega outflow at ($1.18B), a -7.11% move relative to its $16.60B AUM. On a relative basis, smaller issuers Pictet (10.28%) and Humilis (7.30%) saw the largest percentage inflows, while Raub Brock (-16.35%) and Warren (-7.32%) posted the steepest percentage declines.

Total flows across all asset classes reached $18.03B for the day, with Equity contributing the bulk at $15.25B despite a negative 1-Week reading of ($27.39B), underscoring day-to-day volatility within a $12,650.55B AUM base. Fixed Income added $2.71B, extending a strong 30-Day trend of $50.74B and a YTD total of $473.94B, while Digital Asset gained $485.7M on the day against a robust $3.56B 5-Day figure. Commodity was the weakest asset class at ($512.1M), and Non-Traditional also posted an outflow of ($708.4M), a reversal from its $9.48B 30-Day inflow. At the category level, Equity: U.S. Large Cap – Blend led with $10.24B, followed by Equity: Global Ex-U.S. Large Cap – Blend at $4.37B, while Equity: Sector – Information Technology lagged with ($1.57B) in outflows, alongside Equity: Thematic – Multi-Sector at ($934.0M).

The State Street SPDR S&P 500 ETF (SPY) led U.S. size and style flows with $14.93B, followed by the iShares Core S&P 500 ETF (IVV) at $3.85B and the Invesco QQQ Trust Series I (QQQ) at $3.59B. On the outflow side, the Vanguard S&P 500 ETF (VOO) saw the largest redemption at ($11.36B), a notable divergence from peer large-cap blend products on the same day. The iShares Russell 2000 ETF (IWM) also lagged with ($747.0M) in outflows, while the Akre Focus ETF (AKRE) shed ($201.8M).

Ex-U.S. size and style flows were led by the iShares MSCI ACWI ex U.S. ETF (ACWX) at $3.83B, well ahead of the iShares Core MSCI EAFE ETF (IEFA) at $293.2M. Smaller inflows came from the iShares ESG Advanced MSCI EAFE ETF (DMXF) at $59.3M and the iShares International Country Rotation Active ETF (CORO) at $53.6M. On the downside, the iShares MSCI EAFE Growth ETF (EFG) posted the largest outflow at ($771.8M), consistent with the broader ($744.8M) category outflow seen in Equity: Global Ex-U.S. Large Cap – Growth.

Sector flows were led by the Vanguard Real Estate ETF (VNQ) at $393.1M, followed by the State Street Industrial Select Sector SPDR ETF (XLI) at $144.6M and the Vanguard Information Technology ETF (VGT) at $141.3M. The largest outflow by far came from the iShares Semiconductor ETF (SOXX) at ($1.72B), reinforcing the broader ($1.57B) category-level decline in Equity: Sector – Information Technology. The State Street SPDR S&P Biotech ETF (XBI) also lagged with ($482.8M) in redemptions.

Region and country flows were led by the Franklin FTSE Taiwan ETF (FLTW) at $574.7M, contributing meaningfully to Franklin’s overall $569.1M daily inflow. The iShares MSCI Switzerland ETF (EWL) added $279.4M, while the iShares MSCI Sweden ETF (EWD) and iShares MSCI Spain ETF (EWP) each gathered over $150M. Outflows were comparatively modest, with the iShares MSCI Mexico ETF (EWW) leading laggards at ($51.4M).

Thematic flows were mixed, with the iShares Global Clean Energy ETF (ICLN) leading inflows at $88.7M, followed by the Roundhill Magnificent Seven ETF (MAGS) at $43.9M. The ARK Innovation ETF (ARKK) posted the largest outflow at ($951.4M), the primary driver behind ARK’s ($1.18B) daily total and its -7.11% AUM impact. The iShares A.I. Innovation and Tech Active ETF (BAI) also lagged with ($527.4M), consistent with the broader ($934.0M) outflow in Equity: Thematic – Multi-Sector and the ($428.6M) decline in Thematic – Disruptive Tech.

Fixed Income inflows totaled $2.71B on the day, led by the iShares Core Total USD Bond Market ETF (IUSB) at $1.14B and the iShares Global Government Bond USD Hedged Active ETF (GGOV) at $809.0M. The iShares 20+ Year Treasury Bond ETF (TLT) added $402.2M, while the Roundhill Ultra Short Duration No Dividend Target ETF (XBOX) posted a $377.1M inflow (may be the result of a custom rebalance). On the outflow side, the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) led with ($446.6M), followed by the iShares JP Morgan USD Emerging Markets Bond ETF (EMB) at ($297.6M), aligning with the ($469.8M) category-level decline in Fixed Income: Taxable – Corporate.

Commodity as an asset class saw a net outflow of ($512.1M), a reversal from the 30-Day trend of $4.62B in inflows. The SPDR Gold Minishares Trust (GLDM) led inflows at $33.9M, followed by the iShares Silver Trust (SLV) at $23.6M. The SPDR Gold Shares (GLD) posted the largest outflow at ($314.3M), followed by the iShares Gold Trust (IAU) at ($136.9M), consistent with the ($389.0M) category-level decline in Commodity: Focused – Precious Metals.

Digital Asset flows totaled $485.7M for the day, extending a strong $3.56B 5-Day trend. The iShares Bitcoin Trust ETF (IBIT) led with $166.3M, followed by the Fidelity Wise Origin Bitcoin Fund (FBTC) at $143.2M and the iShares Ethereum Trust ETF (ETHA) at $50.8M. Outflows were minimal by comparison, with the Grayscale Ethereum Staking Mini ETF (ETH) posting the largest redemption at just ($4.1M).

Non-Traditional strategies recorded a net outflow of ($708.4M) on the day, a reversal from the 30-Day trend of $9.48B in inflows. The Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ) led inflows at $65.5M, followed by several FT Vest buffer funds each gathering roughly $49-59M. On the outflow side, the FT Vest Buffered Allocation Growth ETF (BUFG) led with ($149.7M), while several Innovator and FT Vest buffer products, including the Innovator Power Buffer Step-Up Strategy ETF (PSTP) at ($133.2M), also posted large redemptions (may be the result of a custom rebalance), consistent with the ($803.0M) category-level decline in Non-Traditional: Buffer – Equity.

Recent launches skewed toward fixed income and niche equity/derivative-income strategies. State Street introduced two defined-maturity corporate bond funds, the My2036 Corporate Bond ETF (MYCP) and My2032 High Yield Corporate Bond ETF (MYHF), each launching with $5.0M in AUM, while VictoryShares added two municipal bond products, the Short-Duration Municipal ETF (VMSD) and Municipal High Yield ETF (VMHY), each with $22.5M. FT Vest launched a cluster of single-stock synthetic income funds tied to GOOG, AMZN, PLTR, and META, each starting with roughly $1.4-1.6M in AUM. Invesco’s Nasdaq International Innovators 100 ETF (QQI) debuted with $4.0M, and xETFs launched the smaller AI Bottlenecks ETF (NECK) with $248.8K in initial assets.