ETF Daily Fund Outflow Report

October 03, 2025

Headline: Equity and Short-Duration Fixed-Income ETFs See Significant Outflows as Caution Persists

Market Overview
Today’s fund flows highlight a broad withdrawal from both equity and short-duration fixed-income ETFs, with the top 10 outflow recipients spanning growth-oriented equities, large-cap benchmarks, and ultra-short Treasury strategies. While equity ETFs like the Invesco QQQ Trust (QQQ) and iShares Russell 2000 ETF (IWM) saw substantial redemptions, short-term Treasury-focused products such as the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) and Schwab Short-Term U.S. Treasury ETF (SCHO) also faced notable outflows. This suggests investors may be rebalancing portfolios amid shifting risk appetite, though the lack of inflows into longer-duration or sector-specific products complicates a clear narrative of flight-to-safety. Year-to-date performance across the group remains largely positive, particularly for growth equities, which could indicate profit-taking or strategic positioning ahead of seasonal volatility.

ETF Highlights
The iShares Russell 2000 ETF (IWM) led outflows with $1.19B, despite posting a 9.74% YTD gain. As a small-cap equity proxy, its outflow may reflect tactical adjustments in a sector that has underperformed broader growth indices recently. With $71.44B in AUM, the scale of redemptions underscores potential caution in cyclical small-cap exposure.

The iShares 0-3 Month Treasury Bond ETF (SGOV) lost $820.8M, despite a 0.05% YTD return. Its $57.95B AUM amplifies the significance of the outflow, which could signal a rotation away from ultra-short duration fixed income, possibly as investors seek alternative yields amid a flattening yield curve.

The Invesco QQQ Trust (QQQ), tracking the Nasdaq-100, faced $480.4M in outflows despite an 18.00% YTD surge. The ETF’s focus on growth and tech-driven equities may have attracted profit-taking, particularly as its $384.67B AUM makes it a bellwether for broader equity sentiment.

The Schwab Intermediate-Term U.S. Treasury ETF (SCHR) and Schwab Short-Term U.S. Treasury ETF (SCHO) each lost over $444M, with SCHO down 1.25% YTD. These outflows, despite modest returns for short-duration Treasuries, suggest investors may be pivoting toward alternative safe-haven assets or extending duration, though the latter is not evident in today’s data.

The iShares Core S&P 500 ETF (IVV), up 14.11% YTD, saw $435.2M in outflows. Its $698.44B AUM means even moderate redemptions represent meaningful capital shifts, potentially reflecting a broader reluctance to add to “blue-chip” benchmarks despite strong relative performance.

Notable smaller outflows included the Vanguard Growth ETF (VUG, -$370.5M) and Invesco Dorsey Wright Momentum ETF (PDP, -$300M). VUG’s 17.44% YTD gain aligns with growth equity trends, while PDP’s 10.26% return and $1.62B AUM suggest its factor-based strategy may be facing selective rebalancing.

Notable Trends
The mix of outflows across growth equities and short-duration Treasuries points to a lack of clear directional bias, with investors potentially scaling back across multiple asset classes. The absence of inflows into defensive or sector-specific ETFs contrasts with typical risk-off patterns, hinting at a more nuanced recalibration rather than a broad selloff.

Conclusion
Today’s outflows across both equity and short-duration fixed-income ETFs may signal a temporary pause in risk-on positioning, with investors reassessing exposure in key benchmarks and Treasury strategies. The magnitude of redemptions in large-cap and growth-oriented products, despite strong YTD returns, could indicate profit-taking or a tactical shift ahead of macroeconomic catalysts. Over the week, persistent outflows in this cohort may reinforce a theme of caution, though the absence of inflows into alternative sectors or longer-duration assets complicates a definitive read on market sentiment. Investors may be prioritizing flexibility, awaiting clarity on broader economic signals before committing capital.