ETF Daily Fund Inflow Report

Date: August 18, 2025
Headline: Growth ETFs Attract Billions as Risk Appetite Returns

Market Overview
Today’s fund flows reflect a pronounced shift toward risk assets, with equity-focused ETFs capturing the lion’s share of inflows. The top 10 list features seven equity ETFs, including innovation, tech, and small-cap themes, alongside a crypto product and high-yield bonds. This suggests investors are rotating into growth-oriented and cyclical sectors, possibly in response to improving risk sentiment. While macroeconomic context remains unclear, the strong performance of tech and small-cap ETFs, coupled with inflows into high-yield corporate debt, points to a market positioning for an environment of stable rates or earnings optimism.

ETF Highlights
The ARKK - ARK Innovation ETF led inflows with $2.83B, likely driven by its focus on disruptive technologies and a YTD gain of 35.83%, one of the strongest in the list. Despite its $10.10B AUM, the inflow underscores renewed interest in innovation-themed equities.

The VOO - Vanguard S&P 500 ETF attracted $2.00B, reinforcing its role as a core large-cap equity benchmark. With a YTD return of 9.75% and $730.05B AUM, its inflow highlights demand for broad-market exposure amid sector-specific rotations.

The QQQ - Invesco QQQ Trust, tracking the Nasdaq-100, added $1.60B, aligning with tech-sector strength. Its 12.89% YTD gain and $371.76B AUM suggest continued confidence in growth stocks, particularly in artificial intelligence and semiconductor themes.

High-yield corporate bonds via the HYG - iShares iBoxx $ High Yield Corporate Bond ETF saw $715.69M inflow, despite a modest 2.23% YTD return. This may signal a search for yield in a low-rate environment, though its $18.86B AUM indicates caution amid credit risks.

The DIA - SPDR Dow Jones Industrial Average ETF Trust drew $584.15M, reflecting interest in blue-chip industrials. Its 5.53% YTD gain and $39.44B AUM position it as a proxy for cyclical economic optimism.

The IGM - iShares Expanded Tech Sector ETF ($546.89M inflow) and ETHA - iShares Ethereum Trust ETF ($500.85M) highlight divergent yet complementary growth themes. IGM’s 15.65% YTD return and $8.64B AUM point to sector-specific momentum, while ETHA’s 30.37% YTD surge—despite its $15.35B AUM—signals growing institutional crypto exposure.

The XLF - Financial Select Sector SPDR Fund ($498.29M) and IWM - iShares Russell 2000 ETF ($462.39M) further diversified the inflow mix. XLF’s 8.63% YTD gain aligns with rate-sensitive financials, while IWM’s 3.17% return and $63.68B AUM suggest small-cap rotation.

Rounding out the list, the LQD - iShares iBoxx USD Investment Grade Corporate Bond ETF ($396.59M) attracted capital to safer fixed income, with a 2.53% YTD return and $28.96B AUM, balancing the equity-heavy flows.

Notable Trends
The dominance of tech and innovation ETFs, alongside small-cap and crypto inflows, signals a broad-based rotation toward growth and disruptive sectors. The coexistence of high-yield (HYG) and investment-grade (LQD) bond inflows suggests a nuanced approach to fixed income, balancing yield-seeking and risk mitigation. ETHA’s inclusion, despite crypto’s volatility, may indicate growing acceptance of digital assets in mainstream portfolios.

Conclusion
Today’s flows underscore a market leaning into growth and cyclical positioning, with a particular emphasis on technology and innovation. The strong inflows into both large-cap and small-cap equities, coupled with crypto and high-yield bond participation, suggest investors are preparing for an environment where earnings growth and sector-specific momentum take precedence. While macroeconomic clarity remains limited, the data points to a risk-on bias that could persist if broader market conditions support continued expansion.