ETF Daily Fund Inflow Report

July 4, 2025

Headline: Growth and International ETFs Attract Largest Inflows as Risk Appetite Holds

Market Overview
Today’s fund flows reflect a broadly risk-on sentiment, with significant inflows into growth-oriented equities, international markets, and crypto-related assets. The top 10 list features a mix of U.S. large-cap growth (QQQ), broad equity benchmarks (VOO, DIA), developed and emerging international exposures (IEFA, IEMG), and a leveraged semiconductor play (SOXL), suggesting investor confidence in global growth themes. While gold (GLD) and investment-grade bonds (LQD) also attracted capital, their presence appears more defensive in nature. The absence of sector-specific macro signals—such as earnings reports or central bank announcements—leaves the flows potentially tied to broader positioning for economic expansion or sector rotation.

ETF Highlights
The Invesco QQQ Trust (QQQ), tracking the Nasdaq-100, led inflows with $1.07B, underscoring continued demand for growth stocks. With a YTD gain of 11.13% and AUM of $360.74B, its performance aligns with sustained momentum in tech and innovation sectors. The Vanguard S&P 500 ETF (VOO), a core broad-market vehicle, added $733.94M, reflecting steady inflows into large-cap U.S. equities despite its more modest 8.65% YTD return.

International exposure drew notable capital, with iShares Core MSCI EAFE ETF (IEFA) and iShares Core MSCI Emerging Markets ETF (IEMG) gaining $375.31M and $222.74M, respectively. IEFA’s 18.68% YTD outperformance and IEMG’s 16.87% gain highlight renewed appetite for global equities, though their AUM of $146.35B and $100.55B, respectively, suggest these flows may reflect a shift toward diversified geographic exposure.

The iShares Ethereum Trust ETF (ETHA) attracted $324.63M, marking crypto’s strongest showing in the top 10. Its 13.84% YTD rise and $10.25B AUM indicate growing institutional acceptance of digital assets, though the ETF’s relatively small size amplifies the significance of its inflow. Conversely, Direxion Daily Semiconductor Bull 3X Shares (SOXL), a leveraged play on semiconductors, drew $296.40M despite a -1.57% YTD decline. This could signal tactical bets on near-term sector rotation or volatility trading, given its $13.45B AUM and triple-leveraged structure.

Defensive and thematic flows were also evident. SPDR Gold Shares (GLD) gained $251.53M, bolstered by its 26.13% YTD surge and $102.86B AUM, possibly reflecting hedging activity amid mixed market signals. Meanwhile, iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) added $217.39M, aligning with fixed-income demand as its 1.81% YTD gain suggests cautious positioning in higher-quality debt.

Notable Trends
The juxtaposition of leveraged semiconductors (SOXL) and health-care (XLV) inflows—despite XLV’s -1.66% YTD—hints at sector rotation, particularly into tech-driven themes. The prominence of both international ETFs (IEFA, IEMG) and ETHA underscores a diversification push beyond U.S. markets, while the inclusion of GLD and LQD signals a balance between risk-on and risk-off positioning.

Conclusion
Today’s flows highlight a nuanced investor stance: a primary focus on growth equities and global diversification, tempered by defensive allocations in gold and bonds. The strong inflow into leveraged and international ETFs, coupled with crypto’s reemergence, may indicate a preference for high-conviction, momentum-driven strategies. However, the mixed YTD performance of some top ETFs—such as SOXL and XLV—suggests positioning could be influenced by short-term sector dynamics rather than a uniform macroeconomic outlook. Overall, the data points to a market primed for selective opportunities amid ongoing uncertainty.