S&P 500 ETFs Dominate Inflows as Year-End Positioning Drives Demand

Date: December 30, 2025

Market Overview

Year-end portfolio adjustments appeared to drive inflows into large-cap equity and broad-market ETFs, with S&P 500-focused products capturing the lion’s share of capital. The top 10 ETFs by inflow were led by three S&P 500 index funds—Vanguard’s VOO, iShares’ IVV, and SPDR’s SPY—alongside other core equity and international exposure vehicles. While bond ETFs were underrepresented in the rankings, the presence of gold-linked GLD and international stock ETF VXUS suggested a mix of hedging and global diversification strategies. The positive year-to-date (YTD) performance across most equity ETFs, coupled with their large asset bases, may have reinforced their appeal as investors solidified core holdings ahead of the new year.

ETF Highlights

Vanguard S&P 500 ETF (VOO) attracted $8.29 billion in inflows, its eighth-largest asset under management (AUM) of $840.61 billion and a 17.24% YTD gain likely supporting its role as a benchmark proxy. Similarly, iShares Core S&P 500 ETF (IVV) drew $3.95 billion, reflecting sustained demand for low-cost S&P 500 exposure amid its $766.01 billion AUM and 17.20% YTD return. SPDR S&P 500 ETF Trust (SPY), with $966.42 million in inflows, maintained its position as a liquidity-driven staple, despite its $713.85 billion AUM and 17.22% YTD performance.

Vanguard Total International Stock ETF (VXUS) added $849.70 million, possibly signaling appetite for global diversification, bolstered by a 28.56% YTD surge. Vanguard Total Stock Market ETF (VTI) saw $697.43 million in inflows, its 16.58% YTD return and $575.49 billion AUM underscoring its role in capturing broad U.S. equity demand. The sole bond ETF in the top 10, Vanguard Total International Bond ETF (BNDX), drew $502.23 million despite a -1.37% YTD decline, potentially indicating tactical allocations to international fixed income.

Sector and alternative assets also featured, with SPDR Dow Jones Industrial Average ETF Trust (DIA) and SPDR Gold Shares (GLD) attracting $460.07 million and $412.05 million, respectively. DIA’s $44.37 billion AUM and 13.65% YTD return aligned with industrial sector rotations, while GLD’s 64.74% YTD leap—its $149.43 billion AUM—may reflect heightened safe-haven demand. Two additional S&P 500 ETFs, SPYM and XLF, rounded out the list, with inflows of $390.98 million and $364.99 million, respectively, their performance closely tracking broader equity benchmarks.

Notable Trends / Surprises

The dominance of S&P 500 ETFs—VOO, IVV, SPY, SPYM—highlighted enduring demand for large-cap equity benchmarks, while GLD’s substantial inflow and YTD outperformance pointed to niche but robust interest in gold as a hedge. The inclusion of VXUS and VTI alongside domestic-focused peers suggested a balanced approach to U.S. and global equity exposure. The lone bond ETF, BNDX, stood out for its positive inflow despite negative YTD returns, possibly indicating tactical bets in international debt markets.

Conclusion

Today’s inflows underscored a preference for large-cap equity benchmarks and diversified stock market exposure, with S&P 500 ETFs and total market vehicles capturing the bulk of capital. The strong performance of GLD and continued flows into international equities may reflect a cautious yet growth-oriented positioning ahead of 2026. While macroeconomic context remains neutral, the data could point to year-end portfolio rebalancing and a focus on core holdings with liquidity and scale.