ETF Daily Fund Outflow Report – September 26, 2025

Headline: Broad Equity Outflows Highlight Profit-Taking Amid Mixed YTD Gains

Market Overview
Today’s fund flows revealed significant outflows across a mix of large-cap growth, broad-market, and sector-specific equity ETFs, suggesting investors may be selectively locking in gains after a strong year-to-date (YTD) rally. While growth-oriented products like the Invesco QQQ Trust (QQQ) and ARK Innovation ETF (ARKK) led the outflow rankings, value-focused peers such as the iShares Russell 1000 Value ETF (IWD) also saw meaningful redemptions. The data reflects a cautious stance in equities, with no clear shift toward bonds or defensive sectors among the top 10. The absence of major macroeconomic announcements or earnings reports this week leaves valuation adjustments and tactical rebalancing as possible drivers.

ETF Highlights
The Invesco QQQ Trust (QQQ) led outflows with a net redemption of $4.73B, despite posting a 16.58% YTD gain and managing $384.38B in assets. As a benchmark for large-cap growth stocks, QQQ’s outflow may indicate profit-taking following its outperformance against the S&P 500. Similarly, the Vanguard Growth ETF (VUG, -$1.82B) and Vanguard S&P 500 ETF (VOO, -$1.73B) — both with YTD returns above 13% and AUM of $199B and $795B, respectively — faced pressure, hinting at broad-based equity caution. The ARK Innovation ETF (ARKK, -$1.07B), up 46.31% YTD but with a relatively small $8.56B AUM, saw outflows that could signal a pullback in speculative tech and innovation plays after a sharp rebound.

On the value side, the iShares Russell 1000 Value ETF (IWD, -$831M) and Vanguard Value ETF (VTV, -$434M) also faced redemptions despite 9.64% and 10.19% YTD gains, respectively. This suggests investors may remain skeptical about value’s momentum relative to growth. Sector-specific outflows, such as the SPDR S&P Aerospace & Defense ETF (XAR, -$402M), which has surged 38.94% YTD, could reflect tactical rotations away from defense stocks amid uncertainty about near-term geopolitical or fiscal catalysts. Mid-cap exposure, via the Vanguard Mid-Cap ETF (VO, -$400M), also saw outflows, despite a 10.74% YTD return, potentially signaling a shift toward larger-cap stability.

Notable Trends
The top 10 list underscores a mixed picture: while growth ETFs dominated in outflow magnitude, value and mid-cap peers also faced redemptions, indicating a broad equity caution rather than a thematic rotation. The stark contrast between ARKK’s 46% YTD gain and its $1B+ outflow highlights the vulnerability of high-flying, smaller AUM funds to profit-taking. Meanwhile, the iShares Russell 1000 Growth ETF (IWF, -$888M) and its $123.9B AUM illustrate that even well-established growth vehicles remain under pressure, possibly reflecting concerns about valuation levels after a strong recovery.

Conclusion
Today’s outflows from a diverse set of equity ETFs — spanning growth, value, and sectors — may signal a short-term pullback in risk-on positioning or a strategic rebalancing following strong YTD performance. The scale of redemptions from high-AUM products like QQQ and VOO suggests broader investor caution, while smaller funds like ARKK highlight vulnerabilities in concentrated innovation themes. Over the week, if outflows persist across equity assets, it could indicate a more sustained shift toward defensive positioning or cash, though the absence of bond ETFs in the data leaves this inference tentative. Investors may be recalibrating portfolios ahead of potential volatility in the fourth quarter.