ETF Weekly Fund Inflow Report

Date: 2025-09-22
The Weekly Report's Time Range: 9.15-9.

Market Overview
Investor sentiment during the week of September 15–19 appeared tilted toward risk assets, with equity-focused ETFs capturing the lion’s share of net inflows. The top 10 ETFs by fund flow featured a mix of broad-market, growth-oriented, and sector-specific products, alongside a single bond ETF. Year-to-date performance across the group reinforced this trend, with several equity ETFs posting double-digit returns, likely amplifying their appeal amid a resilient equity market. While macroeconomic context such as central bank signals or earnings data was not explicitly referenced in the dataset, the inflows into growth and momentum strategies suggest positioning for continued market optimism.

ETF Highlights
The week’s largest inflows flowed into the Technology Select Sector SPDR Fund (XLK), a sectoral play on the tech industry. Its 19.91% YTD return, the second-highest among the top 10, likely supported its appeal, particularly as technology stocks have historically outperformed in low-rate environments. With $91.69 billion in AUM, XLK’s inflows reflect sustained demand for concentrated exposure to innovation-driven equities.

The Vanguard Total Stock Market ETF (VTI), with a massive $542.36 billion AUM, continued to draw capital as a proxy for broad U.S. equity exposure. Its 13.34% YTD gain aligns with the S&P 500’s broader rally, suggesting inflows may reflect a combination of passive allocation and tactical positioning. Similarly, the Vanguard S&P 500 ETF (VOO) and iShares Core S&P 500 ETF (IVV), both with over $600 billion in AUM, saw inflows, underscoring the S&P 500’s role as a benchmark for core equity holdings.

Growth-oriented products also stood out. The Vanguard Growth ETF (VUG), up 17.06% YTD, and the Invesco S&P 500 Momentum ETF (SPMO), which surged 28.28% YTD, attracted significant capital. SPMO’s niche focus on momentum stocks—despite its relatively modest $13.26 billion AUM—highlights growing interest in factor-based strategies capitalizing on performance trends.

The lone bond ETF in the top 10, the iShares 7-10 Year Treasury Bond ETF (IEF), saw inflows amid its 4.51% YTD return. Its $38.72 billion AUM suggests demand for intermediate-duration Treasuries, possibly as a hedge against volatility or in anticipation of a pause in rate hikes, though this remains speculative.

Notable Trends / Surprises
The dominance of growth and momentum strategies, coupled with the absence of value- or dividend-focused ETFs in the top 10, signals a clear rotation toward high-growth and performance-driven assets. SPMO’s exceptional YTD return, despite its smaller size, contrasts with the more moderate gains of large-cap benchmarks, pointing to a possible appetite for alternative risk premiums. Meanwhile, the inclusion of both broad-market (VTI, VOO) and extended-market (VXF) ETFs suggests diversification efforts across market capitalizations.

Conclusion
The week’s fund flows highlight a market environment where growth equities and momentum strategies remain in favor, with large-cap benchmarks and tech sector plays continuing to anchor investor portfolios. The inflow into intermediate Treasuries adds nuance, hinting at cautious diversification, though its scale pales against the equity-focused momentum. Collectively, these trends may indicate a broadly risk-on posture, with investors prioritizing growth and innovation themes amid a backdrop of strong YTD performance.