ETF Daily Fund Inflow Report

Date: July 29, 2025
Headline: Equity ETFs Attract Billions as Risk Appetite Returns

Market Overview
Investor sentiment turned decisively risk-on on July 29, 2025, with fund flows overwhelmingly favoring equity-focused ETFs. The top 10 ETFs by net inflow were dominated by broad-market, growth-oriented, and sector-specific equity funds, reflecting a preference for stocks over bonds or defensive assets. Notably, inflows were concentrated in large-cap benchmarks, small-cap exposure, and leveraged plays on individual equities, suggesting confidence in corporate earnings potential and economic resilience. While macroeconomic context remains unclear, the scale of inflows into growth-oriented vehicles may hint at positioning ahead of earnings season or a response to easing rate expectations.

ETF Highlights
The SPDR S&P 500 ETF Trust (SPY) led the day’s inflows with $6.85 billion, underscoring demand for core U.S. large-cap exposure. As a proxy for the S&P 500, SPY’s 8.39% year-to-date (YTD) gain and $656.83 billion in assets under management (AUM) highlight its role as a stable, blue-chip benchmark. The Invesco QQQ Trust (QQQ), tracking the Nasdaq-100, added $904 million, likely reflecting continued enthusiasm for growth stocks. QQQ’s 10.96% YTD return and $288.65 billion AUM reinforce its appeal to investors seeking tech-driven momentum.

The SPDR Portfolio S&P 500 ETF (SPLG) and iShares Russell 2000 ETF (IWM) also saw robust inflows of $496.2 million and $391.2 million, respectively. SPLG’s $79.52 billion AUM and 8.41% YTD performance position it as a low-cost alternative to SPY, while IWM’s $65.3 billion AUM and 0.78% YTD gain suggest small-cap optimism amid a broader risk rally. The Direxion Daily TSLA Bull 2X Shares (TSLL), with a $437.8 million inflow, stood out despite a steep -57.72% YTD decline. Its leveraged structure and speculative nature likely drew traders betting on near-term volatility in Tesla’s stock price.

Sector-specific flows were evident in the Financial Select Sector SPDR Fund (XLF), which attracted $299.8 million. XLF’s 9.25% YTD rise and $53.07 billion AUM align with potential rotation into financials, a sector historically sensitive to rate expectations. Conversely, the iShares MBS ETF (MBB) — the only fixed-income-related fund in the top 10 — saw $371.5 million in inflows despite a modest 1.88% YTD gain. Its $39.94 billion AUM suggests sustained interest in mortgage-backed securities, possibly as a hedge against rate fluctuations.

Global and emerging market exposure also featured prominently. The Vanguard Total World Stock ETF (VT) and Vanguard FTSE Emerging Markets ETF (VWO) garnered $342.9 million and $265.7 million, respectively. VT’s 11.58% YTD return and $50.64 billion AUM reflect appetite for diversified global equities, while VWO’s 14.6% YTD surge and $94.3 billion AUM indicate renewed optimism about emerging markets. Rounding out the list, the iShares Core Dividend Growth ETF (DGRO) added $249.1 million. Its 6.88% YTD gain and $32.98 billion AUM highlight demand for income-generating equities, even as growth sectors dominated the day’s flows.

Notable Trends / Surprises
The inclusion of MBB and XLF in the top 10 inflows signals a modest rotation into financials and fixed-income niches, contrasting with the broader equity focus. TSLL’s significant inflow despite a sharply negative YTD performance underscores speculative trading activity, particularly in leveraged products. Meanwhile, the dominance of S&P 500 and Nasdaq-100 ETFs reinforces a clear preference for large-cap growth, while IWM’s inflow suggests small-cap cyclical optimism.

Conclusion
Today’s fund flows point to a risk-seeking stance, with investors prioritizing broad equity exposure, growth sectors, and leveraged bets. The strength in large-cap benchmarks and financials may signal confidence in economic momentum and potential easing of monetary policy. However, the inflow into TSLL and MBB also highlights tactical positioning and sector-specific bets. Collectively, the data suggests a market leaning toward growth and cyclical recovery, though macroeconomic clarity will be critical in sustaining this momentum.