Value and Large-Cap Blend Lead as Leverage Retreats

State Street topped absolute flow leaders with $3.36B for the day, aided by huge SPY and SDY demand, while iShares added $1.49B and Capital Group gathered $937.6M, extending its already strong 30-Day ($5.30B) and YTD ($51.03B) trends. Vanguard and VanEck rounded out the top five with $480.1M and $474.3M respectively, both consistent with their longer-term inflow trajectories. On the outflow side, Direxion led all issuers with a $2.86B single-day redemption that stands in contrast to its positive 5-Day ($805.8M) and 30-Day ($8.27B) figures, pointing to a sharp one-day reversal in leveraged products. Invesco shed $1.97B and DFA gave back $458.3M, while on a relative basis Elm (-16.77%), Leverage Shares (-8.25%), and IDX (-5.36%) posted the steepest percentage-of-AUM declines; smaller firms PL (13.24%), Anfield (12.50%), and SMI Funds (12.30%) saw the largest relative inflows.

Total ETF flows reached $2.59B for the day, a pullback from the $43.33B 1-Week and $206.47B 1-Month pace, with Equity contributing $5.26B and Fixed Income adding $1.56B against a Non-Traditional outflow of ($4.21B) that offset much of the gain. Equity’s daily intake remains well within its 1-Year trend of $1.31T, while Fixed Income’s $1.56B also tracks modestly below its $652.64B 1-Year run-rate. Commodity ($229.7M outflow) and Digital Asset ($111.8M inflow) were comparatively minor movers, with Digital Asset still showing a negative 1-Week (-$659.0M) and 1-Month (-$1.50B) trend despite the day’s gain. At the category level, U.S. Large Cap – Value ($3.46B) and U.S. Large Cap – Blend ($2.31B) led all inflows, while Leverage | Inverse – Equity (-$2.19B) and U.S. Large Cap – Growth (-$1.79B) paced the outflows, underscoring the day’s divergence between broad equity categories and leveraged/growth-oriented products.

Within U.S. size and style, the State Street SPDR S&P Dividend ETF (SDY) led with $1.58B, followed by the State Street SPDR S&P 500 ETF (SPY) at $1.35B and the Capital Group Dividend Value ETF (CGDV) at $751.8M. The iShares Russell Midcap ETF (IWR) and iShares Core S&P 500 ETF (IVV) also gathered over $380M each. On the outflow side, the Invesco QQQ Trust Series I (QQQ) shed $2.32B, the largest single redemption in the category, while the U.S. Targeted Value Portfolio (DFAT) and U.S. Small Cap Value Portfolio (DFSV) lost $298.4M and $187.7M respectively.

Ex-U.S. size and style flows were modest, with the Schwab International Equity ETF (SCHF) leading inflows at $168.1M, followed by the Schwab Fundamental International Equity ETF (FNDF) at $53.8M and the Avantis International Equity ETF (AVDE) at $49.4M. On the outflow side, the First Eagle Overseas Equity ETF (FEOE) lost $33.1M, while the Brandes International ETF (BINV) and Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) saw redemptions of $17.6M and $15.0M respectively. Overall magnitudes in this category remained far smaller than those seen in U.S.-focused size and style products.

Sector flows were led by the State Street Financial Select Sector SPDR ETF (XLF) with $513.1M, consistent with the Financials category’s $440.7M overall daily gain, while the VanEck Semiconductor ETF (SMH) added $340.8M. The iShares Biotechnology ETF (IBB) and iShares Expanded Tech-Software Sector ETF (IGV) also posted gains above $160M. Outflows were dominated by the iShares Semiconductor ETF (SOXX), which shed $1.54B, far exceeding the broader Information Technology category’s ($616.3M) daily decline. The State Street SPDR S&P Regional Banking ETF (KRE) and State Street SPDR S&P Biotech ETF (XBI) rounded out the laggards with losses of $122.6M and $86.6M.

Regional flows were comparatively light, with the iShares MSCI Japan ETF (EWJ) leading inflows at $42.9M and the Franklin FTSE Japan ETF (FLJP) adding $24.0M. The iShares Asia 50 ETF (AIA) gathered a smaller $13.4M. On the downside, the iShares MSCI Brazil ETF (EWZ) posted the largest regional outflow at $274.1M, well above the broader Country Specific category’s ($289.0M) total decline, while the iShares MSCI Taiwan ETF (EWT) lost $65.8M.

Thematic flows were led by metals-related funds, with the Global X Copper Miners ETF (COPX) gathering $192.2M and the Global X Silver Miners ETF (SIL) adding $129.8M. The ARK Next Generation Technology ETF (ARKW) and State Street SPDR S&P Homebuilders ETF (XHB) also saw solid gains. On the outflow side, the ARK Innovation ETF (ARKK) lost $211.2M, the category’s largest redemption, while the Global X Cybersecurity ETF (BUG) and Global X Defense Tech ETF (SHLD) each shed over $20M.

Fixed income inflows were broad-based, led by the iShares Broad USD High Yield Corporate Bond ETF (USHY) at $241.7M and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at $228.7M, consistent with the category’s overall $597.1M High Yield and $310.1M Corporate gains. The iShares 7-10 Year Treasury Bond ETF (IEF) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG) also added over $160M each. On the outflow side, the iShares International Treasury Bond ETF (IGOV) lost $274.4M, aligning with the broader International category’s ($274.4M) total decline, while the iShares 0-1 Year Treasury Bond ETF (SHV) and PGIM Ultra Short Bond ETF (PULS) saw outflows of $190.9M and $148.9M.

Commodity flows were net negative for the day at ($229.7M), continuing a soft 1-Week (-$250.3M) and 1-Month (-$577.4M) trend despite a strong YTD gain of $8.35B. Gold-adjacent vehicles diverged sharply: the SPDR Gold Minishares Trust (GLDM) gathered $48.0M and the iShares Gold Trust Micro ETF (IAUM) added $28.2M, while the SPDR Gold Shares (GLD) lost $296.4M, the category’s largest single outflow. The abrdn Physical Gold Shares ETF (SGOL) also declined by $19.2M.

Digital asset flows were positive overall at $111.8M for the day, a reversal from the negative 1-Week (-$659.0M) and 1-Month (-$1.50B) trends. The iShares Bitcoin Trust ETF (IBIT) led with $136.0M, while the Fidelity Ethereum Fund ETF (FETH) added $18.8M. On the outflow side, the iShares Ethereum Trust ETF (ETHA) lost $44.8M, the category’s largest redemption, while the Bitwise Solana Staking ETF (BSOL) shed $5.7M.

Non-Traditional products posted a sharp overall outflow of ($4.21B), a pronounced one-day move against the 1-Week ($2.79B), 1-Month ($21.60B), and YTD ($103.64B) inflow trends. The Direxion Daily Technology Bull 3X ETF (TECL) accounted for the largest single redemption at $1.46B, followed by the Direxion Daily MU Bull 2X ETF (MUU) at $734.7M and the Direxion Daily Semiconductor Bull 3X ETF (SOXL) at $676.9M, aligning with the broader Leverage | Inverse – Equity category outflow of ($2.19B). On the inflow side, the GraniteShares 2x Long NOW Daily ETF (NOWL) gathered $62.0M and the JPMorgan NASDAQ Equity Premium Income ETF (JEPQ) added $61.5M, while the Direxion Daily Semiconductor Bear 3X ETF (SOXS) took in $43.8M.

Recent launches spanned a range of issuers and strategies, highlighted by the Hartford Alpha Capture International Equity ETF (ACIN), which debuted with $654.1M in assets, and the AB US Research Advanced ETF (RADD), which launched with $1.13B. Smaller new entrants included two Eventide equity funds, the Large Cap Focus ETF (ELCF) and Dividend Growth ETF (ETDG), each with $500.0K in assets. Several synthetic income products also launched, including the YieldMax SKHY Option Income Strategy ETF (YSKH), Calamos Least-Of Autocallable Income ETF (CAYN), and Tuttle Capital Innovation 100 Income & Hedge ETF (QQDH), while VanEck introduced the Wealth Builder ETF (WBMO) in the Target Risk Growth category.