The Big Picture: Total industry ETF flows reached a robust $25.6 billion over the last week, pushing aggregate assets under management (AUM) to $14.13 trillion amid a complex macroeconomic backdrop of resilient corporate earnings and evolving Fed rate expectations. The most significant divergence of the week occurred between traditional and alternative safe-havens: while Equity and Fixed Income funds absorbed massive inflows ($14.8 billion and $10.7 billion, respectively), both Commodities and Digital Assets experienced sharp reversals, shedding $804 million and $535 million despite swirling geopolitical uncertainties.
| Asset Class | AUM ($B) | 1W Flow ($M) | 1M Flow ($M) | 3M Flow ($M) | YTD Flow ($M) | 1Y Flow ($M) |
|---|---|---|---|---|---|---|
| Equity | $10,799.6 | $14,810 | $109,129 | $365,235 | $175,228 | $955,555 |
| Fixed Income | $2,389.6 | $10,755 | $55,034 | $147,607 | $91,009 | $469,146 |
| Non-Traditional | $408.2 | $1,037 | $9,893 | $18,976 | $9,979 | $86,092 |
| Commodity | $387.6 | (804) | $2,364 | $17,173 | $6,308 | $60,304 |
| Digital Asset | $100.4 | (535) | (5,244) | (4,001) | (3,509) | $27,306 |
| Multi-Asset | $34.7 | $284 | $1,826 | $3,511 | $9,589 | $2,383 |
| Alternative | $10.5 | $10 | $120 | $691 | $3,366 | $227 |
| Currency | $2.6 | $46 | $320 | $248 | $780 | $296 |
| Total | $14,133.2 | $25,604 | $173,441 | $549,440 | $281,922 | $1,612,139 |
(Source: ETF Action, FactSet)
Equity Landscape
The U.S. equity market continues to digest a mixed bag of persistent inflation readings and robust corporate infrastructure spending. While large-cap growth maintains its grip on absolute performance—buoyed by the ongoing artificial intelligence capex cycle—value strategies are topping the inflow charts. This dynamic suggests investors are increasingly looking to broaden their domestic exposure, rotating capital toward cyclicals and underappreciated value segments in preparation for a wider economic expansion.
Internationally, the dispersion between developed and emerging markets remains a key focal point. Global blend funds captured a notable $600 million this week, indicating a strategic shift as money managers rebalance away from concentrated U.S. risks. This steady accumulation has propelled Global Ex-U.S. ETF assets to a staggering $1.72 trillion, underscoring a long-term structural allocation trend toward international diversification.
On a regional basis, the Americas are leading the pack in total performance, but Asia-Pacific is dominating the actual flow of new capital. This geographic contrast highlights a tactical playbook where investors are willing to chase value and structural supply-chain realignments in the East, even while enjoying the reliable momentum found closer to home.
From a sector and thematic perspective, cyclical shifts are taking center stage. Energy flows surged this week as underlying commodity dynamics and geopolitical tensions force a repricing of traditional energy infrastructure, while industrials broadly outperformed the broader market. Thematically, while silver-focused funds surged on the back of tight supply and industrial demand, disruptive technology ETFs faced notable outflows—a sign that investors are becoming hyper-selective about innovation multiples in the current rate environment.
Equity Spotlight: Thematic Return Divergence
A look at the stark divergence in one-year returns across our 12 Thematic Equity categories, utilizing representative ETFs ranging from Precious Metals (GDX) to Health Innovation (HTEC).
Dive Deeper into Equity Flows:
- Size & Style (US): Large Growth Leads Performance, Value Tops Inflows
- Size & Style (Global): Global Blends’ $600M Week: Where the Money is Moving
- Size & Style (Global Ex-US): Global Ex-U.S. ETFs Surge as Channel AUM Hits $1.72 Trillion
- Region & Country: Americas Lead Performance While Asia-Pacific Dominates Flows
- Sector & Industry: Sector Spotlight: Energy Flows Surge as Industrials Outperform
- Thematic: Thematic Pulse: Silver Surges While Disruptive Tech Faces Outflows
- Specialty: EQ Specialty: CLIX Surges 5% as JPMorgan Maintains Specialty Dominance
Fixed Income Landscape
Duration management was the dominant theme this week as investors poured a massive $10.25 billion into taxable bond ETFs. In the municipal space, long-duration strategies led performance, suggesting that despite a murky Federal Reserve outlook, parts of the market are confidently locking in rates at the longer end of the curve. Conversely, the short end remains heavily utilized as a cash management tool while the yield curve awaits normalization.
Within credit, the hunt for yield has pushed investors further out on the risk spectrum. Preferred stock ETFs led the charge in the taxable segment, while municipal high-yield inflows surged simultaneously. This aggressive positioning reflects a strong appetite for income, with investors seemingly brushing aside concerns over credit quality and focusing squarely on capturing higher payouts in a persistently elevated rate environment.
Finally, the specialty fixed income space saw defined maturity ETFs completely dominate the weekly flow breakdown. This targeted approach allows investors to meticulously ladder portfolios and manage precise duration profiles, a critical utility for those hedging against both U.S. dollar fluctuations and the unpredictable path of international central bank policy.
Fixed Income Spotlight: Treasury Yield Curve Evolution
A look at the change in Yield to Maturity (YTM) over the past couple of years using BondBloxx’s precise treasury ETFs, ranging from 6 Months (XHLF) to 20 Years (XTWY).
Dive Deeper into Fixed Income Flows:
- Taxable: Taxable Bond ETFs See Massive $10.25B Inflows as Preferreds Lead the Charge
- Municipal: Muni Recap: High Yield Inflows Surge as Long Duration Leads Performance
- Specialty: Defined Maturity Dominates Weekly Specialty Fixed Income ETF Breakdown
Currencies, Commodities & Digital Assets
Commodities experienced a broadly challenging week, shedding $804 million in total flows. The drag was almost entirely concentrated in precious metals, which saw heavy selling pressure despite isolated thematic strength in pockets like silver. However, it wasn’t a total washout for the asset class, as multi-sector commodity strategies shined, attracting capital from allocators seeking diversified hard-asset exposure rather than making concentrated bets on gold.
The digital asset space presented a tale of two markets. Core heavyweights faced intense pressure, with Bitcoin and Ethereum ETFs suffering a combined barrage of heavy outflows. In stark contrast, altcoin ETFs defied the drop, capturing positive flows as risk-tolerant investors moved further out on the crypto risk curve in search of the next cycle’s alpha generators.
Currency markets reflected a distinct shift in global macro posturing. Short Yen strategies surged as market participants adjusted to the Bank of Japan’s latest signaling, while the Swiss Franc led currency inflows. This combination highlights a strategic blend of tactical monetary policy trades and a persistent underlying demand for traditional European safe-haven assets.
Macro & Digital Asset Spotlight: Unpacking SLV Ownership Dynamics
A look at the 13F security profile for the iShares Silver Trust (SLV) reveals a fascinating market structure: approximately 70% of ownership is currently unknown (implying a massive retail footprint), while Jane Street alone accounted for nearly two-thirds of all institutional buying during the fourth quarter.
Dive Deeper into Macro & Digital Asset Flows:
- Commodities: Commodities Shed $804M: Precious Metals Drag While Multi-Sector Shines
- Currency: Currency ETF Weekly: Short Yen Surges as Swiss Franc Leads Inflows
- Cryptocurrency: Crypto Recap: Altcoins Defy the Drop as Bitcoin & Ethereum Face Heavy Outflows
Non-Traditional Landscape
The synthetic income boom shows zero signs of slowing down. This week saw a spectacular $1.5 billion surge into the category, almost exclusively driven by equity-based derivative strategies. As traditional equity markets climb and yields remain competitive, the appeal of converting equity volatility into high-yielding monthly income distributions continues to attract a staggering amount of retail and institutional capital.
Buffer ETFs are maintaining their own quiet revolution in portfolio risk management. Strong momentum into February has pushed the buffer channel’s total AUM past the $85.3 billion mark. This steady, sticky capital indicates that financial advisors are increasingly replacing traditional core fixed income allocations with these defined-outcome equity strategies.
In the higher-octane segments, Leverage and Inverse ETFs held their ground, with the channel’s AUM remaining firm at $145 billion. Notably, rising conviction in single-name momentum is driving single-stock levered ETF AUM to new historical heights. This specific rotation showcases a highly tactical trading environment where participants are weaponizing the ETF wrapper to express concentrated, high-conviction micro-views.
Non-Traditional Spotlight: Synthetic Income League Tables
A look at our weekly League Tables report for Synthetic Income ETFs, highlighting not only the massive growth in total category assets but also the sheer number of issuers rushing to launch products in this high-demand space.
Dive Deeper into Non-Traditional Flows:
- Leverage & Inverse: Tactical Trading Interest Holds Firm at $145B AUM
- Buffer: $85.3 Billion and Counting: Buffer ETFs Maintain Strong Momentum Into February
- Single Stock: Conviction Rising: Levered Strategies Drive Single Stock ETF AUM to New Heights
- Synthetic Income: The $1.5B Surge: Equities Drive the Synthetic Income ETF Boom
Multi-Asset & Alternatives
In the Multi-Asset arena, active management muscle is proving its worth. Capital Group cleanly won the week in flows, leveraging its massive distribution footprint and recognized active-management pedigree to attract capital into blended, real-asset, and macro-oriented ETF strategies.
Within the Alternatives channel, Managed Futures were the undeniable star. These trend-following strategies absolutely dominated the flow tables this week, propelling total alternative ETF AUM to $10.5 billion. As equities and bonds experience intermittent correlation spikes, the demand for true, unconstrained crisis-alpha is pushing managed futures from a niche allocation to a core portfolio staple.
Multi-Asset & Alternatives Spotlight: Managed Futures Market Share & Growth
A breakdown of the managed futures ETF space, illustrating market share, AUM growth over time, and recent flows. The data shows that several ETF issuers are quietly building out decent-sized strategies within this relatively small, yet increasingly relevant, category.
Dive Deeper into Multi-Asset & Alternative Flows:
- Multi-Asset: Multi-Asset League Tables: Capital Group Wins the Week in Flows
- Alternative: Managed Futures Dominate as Alternative ETFs Hit $10.5B
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.
