S&P 500 ETFs Bleed Billions Despite Gains

Date: 2026-02-01The Weekly Report's Time Range: 1.26-1.30

Market Overview

This week’s fund-flow data highlights substantial net outflows across several major equity and commodity ETFs, with the largest outflows concentrated in the S&P 500 and broader market-tracking funds. Commodity exposure also saw significant withdrawals, while leveraged and sector-specific strategies experienced mixed performance. The data may indicate investor caution or portfolio rebalancing ahead of the close of the first quarter.

ETF Highlights

VOO, the Vanguard S&P 500 ETF, recorded a net outflow of $3.54B for the week, despite posting a 1.45% positive YTD return and managing $861.64B in assets. This may reflect ongoing portfolio turnover or strategic rebalancing across large-cap equity exposure.

IVV, the iShares Core S&P 500 ETF, experienced a net outflow of $2.04B, with a 1.47% YTD performance and $763.64B in AUM. The outflow could suggest a shift in investor preference between closely aligned S&P 500 trackers.

DIA, the SPDR Dow Jones Industrial Average ETF Trust, had a net outflow of $1.84B, with a 1.76% YTD gain and $43.53B in AUM. This may indicate reduced interest in a concentration of large-cap industrial stocks within the broader market.

SLV, the iShares Silver Trust, recorded a net outflow of $1.57B, with a notable 17.11% YTD performance and $51.48B in AUM. This may reflect a shift away from physical commodities, even as the underlying asset posted strong returns.

ARKK, the ARK Innovation ETF, had a net outflow of $1.03B, with a -2.67% YTD return and $6.68B in AUM. The outflow may indicate a reduction in exposure to high-growth innovation-focused equities.

TQQQ, the ProShares UltraPro QQQ, experienced a net outflow of $836.37M, with a 2.43% YTD return and $28.96B in AUM. This may signal caution in leveraged tech exposure despite positive returns.

IWM, the iShares Russell 2000 ETF, recorded a net outflow of $569.42M, with a 5.48% YTD performance and $73.89B in AUM. The outflow might reflect reduced appetite for small-cap equity exposure despite strong returns.

ARKF, the ARK Blockchain & Fintech Innovation ETF, had a net outflow of $409.87M, with a -9.11% YTD performance and $963.41M in AUM. The outflow might reflect a strategic shift away from blockchain and fintech equities amid underperformance.

KRE, the State Street SPDR S&P Regional Banking ETF, recorded a net outflow of $298.87M, with a 6.17% YTD performance and $4.30B in AUM. The outflow might reflect a reduced focus on regional banking stocks, despite the segment’s solid returns.

IWD, the iShares Russell 1000 Value ETF, had a net outflow of $262.72M, with a 4.53% YTD performance and $68.50B in AUM. This may indicate shifting investor preferences away from large-cap value equities, even as the strategy has delivered positive returns.

Notable Trends / Surprises

While the S&P 500 and Russell 2000 equity strategies continued to post positive returns, both saw significant net outflows, suggesting a possible rotation or rebalancing in portfolio allocations. Similarly, leveraged and tech-focused strategies, including ARKK and TQQQ, experienced outflows despite varied performance, which might reflect caution in volatile or high-beta exposures.

Conclusion

This week’s fund-flow data underscores a general trend of net outflows across large-cap and commodity ETFs, with particular emphasis on S&P 500 and small-cap equity strategies. While several funds posted strong YTD returns, the outflows may reflect ongoing investor caution or strategic portfolio adjustments ahead of the next quarterly reporting period.