Equity-Focused ETFs Attract Strong Inflows Amid Year-End Positioning

Date: December 24, 2025

Market Overview

Investor sentiment on December 24, 2025, appears to favor broad equity exposure, with inflows concentrated in large-cap, mid-cap, and international stock ETFs. The top 10 ETFs by net inflow collectively represent core U.S. equity benchmarks, growth-oriented technology exposure, and international equities, suggesting a preference for established market segments ahead of the year-end holiday period.

Performance trends reinforce this pattern, with several ETFs posting double-digit year-to-date (YTD) returns, potentially reinforcing their appeal amid a backdrop of sustained risk-on positioning. While no specific macro events are explicitly referenced in the data, the timing may reflect portfolio adjustments ahead of seasonal closures.

ETF Highlights

The iShares Core S&P 500 ETF (IVV) led inflows with $23.66 billion, maintaining its status as the largest equity ETF with $774.90 billion in assets. Its 17.79% YTD gain may reflect enduring demand for broad U.S. equity exposure. The Invesco QQQ Trust (QQQ), tracking the NASDAQ-100, added $3.08 billion, buoyed by its 22.04% YTD return and $408.09 billion AUM, signaling continued appetite for growth-oriented technology stocks.

Mid-cap equity ETFs also drew significant interest, with the iShares S&P Mid-Cap 400 Value ETF (IJJ) and iShares S&P Mid-Cap 400 Growth ETF (IJK) attracting $827.34 million and $727.28 million, respectively. IJJ’s 7.03% YTD rise contrasts with IJK’s 8.97% gain, hinting at modest differentiation in value-growth positioning. The iShares Core S&P Mid-Cap ETF (IJH), up 8.04% YTD, added $357.97 million, underscoring mid-cap’s role in diversified portfolios.

International equities saw notable inflows into the Vanguard Total International Stock ETF (VXUS), which took in $765.98 million. Its 28.30% YTD surge, the highest among the top 10, may indicate renewed risk appetite for non-U.S. markets. Smaller but high-performing was the Pacer Global Cash Cows Dividend ETF (GCOW), with $521.15 million inflows and a 25.43% YTD return, potentially reflecting niche demand for dividend-focused strategies.

Niche and thematic products included the Invesco S&P 500 Equal Weight ETF (RSP), which added $709.10 million, and the Invesco NASDAQ 100 ETF (QQQM) with $265.91 million. RSP’s $76.12 billion AUM and 10.59% YTD gain highlight its appeal as an alternative to cap-weighted benchmarks, while QQQM’s 22.06% YTD performance reinforces the NASDAQ-100’s growth tilt. The Innovator U.S. Small Cap Power Buffer ETF (KJAN) closed the list with $275.29 million inflows, driven by its 13.70% YTD return, though its $280.70 million AUM suggests limited scale.

Notable Trends / Surprises

The dominance of S&P 500- and NASDAQ-100-linked ETFs (IVV, QQQ, QQQM) underscores a clear preference for large-cap growth and broad equity exposure. Simultaneously, mid-cap value (IJJ) and international equities (VXUS) drew meaningful inflows despite their traditionally cyclical profiles, possibly signaling a broadening of risk appetite. The strong performance of GCOW and KJAN, both niche products, adds nuance to the day’s flows, suggesting pockets of demand for specialized strategies amid a largely risk-on environment.

Conclusion

Today’s inflows may indicate a strategic shift toward core equity exposure, with investors favoring large-cap benchmarks, mid-cap diversification, and international opportunities. The emphasis on high-performing, established ETFs could point to year-end portfolio rebalancing or holiday-positioning activity. While the data does not confirm specific macro drivers, the collective trends highlight confidence in equity markets, particularly in growth-oriented and diversified segments.