ETF Daily Fund Outflow Report

Date: September 24, 2025

Headline: Broad Equity ETFs See Outflows as Growth and Tech Sectors Face Profit-Taking

Market Overview
Today’s fund flows highlight a notable withdrawal from equity-focused ETFs, with outflows spanning broad market, growth, and sector-specific vehicles. The top 10 ETFs by net outflow are predominantly equity-oriented, suggesting investors may be selectively rotating capital amid a period of strong year-to-date (YTD) gains. While macroeconomic context remains unclear, the data points to a potential pause in risk-on positioning, particularly in high-performing areas such as technology and growth stocks. Flows show little immediate favor toward bonds or alternative sectors, with sector rotations appearing to prioritize near-term returns over long-term growth themes.

ETF Highlights
The Vanguard S&P 500 ETF (VOO), the largest U.S. equity ETF with $792.28B in assets, led outflows with a net redemptions of $5.88B. Up 13.12% YTD, its size and broad exposure to large-cap equities may indicate profit-taking after a sustained rally. Similarly, the Technology Select Sector SPDR Fund (XLK), up 19.76% YTD, saw $2.57B in outflows, reflecting possible caution in a sector that has driven much of the year’s market gains.

The VanEck Semiconductor ETF (SMH), up 32.61% YTD, faced $2.07B in outflows despite its strong performance, hinting at a potential rotation away from cyclical tech plays. Growth-oriented funds like the Vanguard Growth ETF (VUG), with $199.34B in AUM and a 16.19% YTD return, also saw $1.72B in redemptions, suggesting investors may be rebalancing portfolios after outsize gains.

Sector-specific funds like the Communication Services Select Sector SPDR Fund (XLC) ($1.50B outflow) and Financial Select Sector SPDR Fund (XLF) ($1.43B outflow) added to the trend. Both are up over 20% and 10.92% YTD, respectively, potentially drawing profit-taking in areas that have benefited from rate-cut speculation and economic optimism. Mid-and small-cap ETFs, including the Schwab U.S. Mid-Cap ETF (SCHM) and Schwab U.S. Small-Cap ETF (SCHA), also faced outflows despite modest YTD gains of 6.69% and 7.68%, indicating a possible shift toward larger, more liquid assets.

Notable Trends
The outflows span a diverse range of equity themes, from broad market exposure (VOO, IWB) to sector-specific bets (XLK, SMH), suggesting a broad reassessment of risk rather than a targeted rotation. The largest outflows occurred in ETFs with the strongest YTD performance, reinforcing the possibility of profit-taking. Notably, the iShares Russell 1000 ETF (IWB), up 12.72% YTD, saw $1.39B in outflows, underscoring that even well-established large-cap benchmarks are not immune to short-term positioning shifts.

Conclusion
Today’s outflows from high-performing equity ETFs may signal a temporary pause in the year’s risk-on momentum, with investors potentially locking in gains after strong sector rallies. While the data does not confirm a broader selloff, the scale of redemptions in growth and tech vehicles could hint at a tactical rebalancing ahead of potential macroeconomic catalysts. Over the coming week, continued outflows in these areas may further indicate a rotation toward value or defensive sectors, while a reversal could reaffirm confidence in growth-driven markets. Investors should monitor whether today’s trend aligns with broader market volatility or remains an isolated correction.