Climate and Commodity ETFs Dominate Outflows as Investors Adjust Portfolios

Date: January 1, 2026

Market Overview

Today’s net fund outflows highlight a broad-based reduction in exposure across equity, sector, and thematic ETFs, with notable activity in climate-conscious strategies, commodity-linked assets, and leveraged semiconductor products. While the data does not explicitly point to a single macroeconomic driver, the outflows suggest a cautious repositioning, particularly in areas tied to environmental themes and volatile commodities. The mixed performance across YTD returns and AUM levels further underscores divergent investor priorities, with larger funds like IBIT and SLV experiencing significant outflows despite their substantial assets under management.

ETF Highlights

iShares Climate Conscious & Transition MSCI USA ETF (USCL) The climate-conscious equity ETF, with $2.27 billion in AUM, saw the largest outflow of $358.5 million. Its -0.73% intraday decline adds to a -0.85% YTD performance, which may indicate waning short-term interest in ESG-aligned U.S. equities. The outflow could reflect a strategic rebalancing away from thematic climate exposure amid broader market volatility.

Xtrackers MSCI USA Climate Action Equity ETF (USCA) This climate-action focused fund, holding $2.86 billion, lost $357.3 million. Its -0.70% drop and -0.56% YTD return suggest investors may be scaling back on similar ESG themes, potentially signaling a shift in risk appetite for sustainability-linked equities.

Invesco S&P 500 Equal Weight ETF (RSP) The equal-weight S&P 500 product, with $75.9 billion in assets, recorded a $300.5 million outflow. Its -0.85% decline and -0.36% YTD performance may indicate a rotation away from broad equity strategies, possibly as investors seek more targeted sector exposure.

Direxion Daily Semiconductor Bull 3X Shares (SOXL) The leveraged semiconductor ETF, holding $12.7 billion, lost $258.3 million. Its -3.76% intraday drop, coupled with a -0.85% YTD return, could reflect profit-taking or reduced speculative interest in the volatile 3X leveraged product.

abrdn Physical Silver Shares ETF (SIVR) The silver-linked ETF, with $5.4 billion in AUM, saw $206.1 million in outflows. A -6.57% price decline and -6.57% YTD performance may signal reduced demand for physical silver exposure, potentially due to near-term price pressures.

iShares Silver Trust (SLV) The larger silver ETF, holding $38.1 billion, lost $196.3 million. Its -6.61% drop and -6.61% YTD performance align with SIVR’s move, possibly reflecting a broader reassessment of commodity positions amid fluctuating metal prices.

iShares Bitcoin Trust ETF (IBIT) Despite $67.4 billion in AUM, IBIT saw $192.6 million in outflows. Its -0.36% decline and -0.36% YTD return may indicate profit-taking in the crypto asset class, though the outflow’s magnitude remains relatively modest relative to its size.

State Street Consumer Staples Select Sector SPDR ETF (XLP) The consumer staples fund, with $14.7 billion in assets, lost $156.5 million. Its -0.60% drop and -0.09% YTD performance could suggest a tactical shift away from defensive sectors, possibly as investors pivot toward cyclical plays.

State Street SPDR Bloomberg High Yield Bond ETF (JNK) The high-yield bond ETF, holding $7.6 billion, recorded a $155.1 million outflow. Its -0.09% decline and -0.09% YTD return may reflect reduced appetite for leveraged credit, though the outflow’s scale appears moderate.

Vanguard Health Care ETF (VHT) The health care fund, with $17.4 billion in AUM, lost $123.2 million. Its -0.56% drop and -0.56% YTD performance could indicate a sector-specific rebalancing, potentially as investors reassess growth prospects in pharmaceuticals and biotech.

Notable Trends

The top 10 outflows include two climate-themed ETFs and two silver products, highlighting a possible rotation away from ESG and commodity exposures. The leveraged semiconductor product (SOXL) also features prominently, suggesting reduced speculative activity in high-beta assets.

Conclusion

Today’s outflows may indicate a tactical repositioning across climate-conscious equities, commodities, and leveraged products, with silver and semiconductor ETFs bearing the brunt of the exodus. The mixed YTD performance and varying AUM levels across the top 10 ETFs could reflect divergent investor priorities, from risk-off strategies in commodities to selective sector rotations. While no single theme dominates, the data points to a cautious approach in areas perceived as volatile or underperforming in the short term.