ETF Daily Fund Outflow Report

August 05, 2025
Headline: Broad Equity and Treasury Outflows Signal Caution as Growth and Small-Cap ETFs Lose Ground

Market Overview
Today’s fund flows reflect a broadly cautious investor sentiment, with significant outflows across both equity and fixed-income ETFs. While the top 10 outflows include a mix of small-cap, growth, and high-dividend equity funds alongside short- and intermediate-term Treasury ETFs, the data suggests a potential rotation away from established market segments. Notably, even Treasury allocations—typically a safe-haven destination—faced redemptions, which may indicate a flight to liquidity or a broader reassessment of risk. The absence of inflows into specific sectors or asset classes highlights a lack of clear directional bias. While no immediate macroeconomic catalysts are specified, the pattern could align with a post-earnings season rebalancing or a response to evolving Federal Reserve signals ahead of anticipated policy updates.

ETF Highlights
The largest outflow, IWM - iShares Russell 2000 ETF, saw $1.15B exit, despite a marginal -0.05% YTD performance. As a small-cap benchmark proxy, its outflow may reflect profit-taking or shifting risk appetite, given its $61.79B AUM, which amplifies the scale of redemptions.

RSP - Invesco S&P 500 Equal Weight ETF lost $646M, despite a 4.59% YTD gain. Its equal-weight structure, which diversifies sector exposure, may have faced outflows as investors pivot toward more concentrated or factor-driven strategies.

SPYG - SPDR Portfolio S&P 500 Growth ETF, up 11.38% YTD, saw $261M exit, potentially signaling partial profit-taking after a strong performance run. Its $39.22B AUM underscores the magnitude of the redemption in a growth-focused segment.

XLV - Health Care Select Sector SPDR Fund faced $410M outflows despite a -3.69% YTD decline, possibly exacerbating underperformance as capital exits a sector already lagging.

SPYD - SPDR Portfolio S&P 500 High Dividend ETF, down -0.44% YTD, lost $741M, suggesting reduced demand for income strategies amid shifting yield expectations. Its relatively smaller $6.85B AUM may amplify sensitivity to thematic rotations.

Short-term Treasury ETFs, including SGOV (-$402M), BIL (-$371M), and SCHO (-$425M), all faced outflows despite modest YTD gains (0.10%–1.00%). This points to a possible reduction in cash-equivalent holdings, potentially reflecting anticipation of higher yields or a search for alternative allocations.

PKW - Invesco BuyBack Achievers ETF, up 8.54% YTD, lost $443M, highlighting that even strong performers are not immune to outflows, possibly due to tactical rebalancing. Its $1.36B AUM suggests a niche but active investor base.

SCHR - Schwab Intermediate-Term U.S. Treasury ETF, up 2.88% YTD, saw $352M exit, indicating a possible shift in duration preferences or broader bond-market reassessment.

Notable Trends
The outflows span growth, value, and income-oriented equities, alongside Treasury strategies, signaling a lack of consensus on asset allocation. The largest redemptions in high-performing growth and small-cap ETFs may indicate profit-taking or a reassessment of valuations. Meanwhile, Treasury ETFs’ outflows, despite positive YTD returns, hint at reduced demand for traditional safe havens, possibly pointing to a broader search for yield or alternative risk exposures.

Conclusion
Today’s flows suggest a market in transition, with investors scaling back positions across multiple asset classes. The lack of inflows into specific sectors or strategies underscores uncertainty, potentially reflecting a wait-and-see approach ahead of macroeconomic clarity. If this pattern persists through the week, it could signal a broader risk-off posture or a pivot toward underrepresented segments, such as mid-cap equities or non-Treasury fixed income, though such inferences remain speculative without additional context.