ETF Weekly Fund Inflow Report

Date: July 17, 2025

Headline: Equity and Crypto ETFs Attract Inflows Amid Growth and Yield Focus

Market Overview
Investors this week showed a preference for equity exposure, with top inflows skewed toward broad U.S. equity ETFs and sectors like utilities, alongside significant interest in crypto assets. The inclusion of high yield bonds (USHY) suggests a balanced approach to risk, as investors balance growth opportunities with yield-seeking strategies. The inflow data does not indicate a clear macroeconomic catalyst, though the strong performance of several top ETFs this year may be driving momentum-driven flows.

ETF Highlights

1. IWM (iShares Russell 2000 ETF):
This small-cap U.S. equity fund, with $65.11B in AUM, topped the inflow rankings despite flat YTD performance (0.03%). The inflow may reflect a rotation toward smaller companies amid optimism about economic recovery or sector diversification, though the fund’s lack of YTD gains makes the move somewhat counterintuitive.

2. USHY (iShares Broad USD High Yield Corporate Bond ETF):
High yield bonds attracted flows despite a modest 1.14% YTD return, possibly signaling a search for yield in a low-rate environment. The $24.72B AUM underscores its role as a core income-generating holding for investors willing to accept higher risk.

3. VTI (Vanguard Total Stock Market ETF):
With $506.26B in AUM, this broad-market ETF’s 6.02% YTD gain likely drew inflows from investors seeking exposure to a diversified equity base. Its dominant scale and consistent performance make it a go-to for passive portfolio construction.

4. SPLG (SPDR Portfolio S&P 500 ETF):
The S&P 500 tracker saw inflows despite a 6.51% YTD return, slightly ahead of peers like VOO. Its $76.37B AUM suggests investors may favor its cost structure or liquidity compared to similar products.

5. ETHA (iShares Ethereum Trust ETF):
Ethereum’s 1.34% YTD performance contrasts with its inflow ranking, hinting at speculative interest in crypto as an asset class. The $6.42B AUM reflects growing institutional acceptance of digital assets, even in the absence of strong recent returns.

6. XLU (Utilities Select Sector SPDR Fund):
Utilities, which gained 8.38% YTD, attracted inflows likely driven by their defensive appeal and strong sector performance. The $19.88B AUM highlights its role as a staple for investors seeking stability amid market volatility.

7. AVDV (Avantis International Small Cap Value ETF):
This international small-cap value fund stands out with a 23.17% YTD gain, a standout performance that may have drawn inflows from investors chasing high returns in overlooked markets. Its $10.35B AUM suggests strong demand for its strategy, though its niche focus limits broader adoption.

8. VOO (Vanguard S&P 500 ETF):
The largest ETF by AUM ($694.14B) saw inflows despite a 6.48% YTD return, underscoring its role as a core holding for passive investors. Its scale ensures even modest inflows have meaningful market impact.

9. IBIT (iShares Bitcoin Trust ETF):
Bitcoin’s 27.86% YTD performance likely fueled inflows into this $83.75B crypto ETF, signaling investor optimism about digital assets. The inflow may reflect both momentum chasing and a broader shift toward alternative investments.

10. IEFA (iShares Core MSCI EAFE ETF):
International equities gained traction with a 17.53% YTD return, attracting flows to this $141.01B fund tracking developed markets outside the U.S. The inflow may reflect a belief in global economic resilience or a rotation toward undervalued regions.

Notable Trends/Surprises
- Crypto Momentum: The inflows into ETHA and IBIT highlight investor enthusiasm for digital assets, particularly after strong YTD performance, despite broader market volatility.
- International Value Play: AVDV’s outsized YTD gains signal a shift toward value-oriented strategies in international small caps, a less crowded sector.
- Utility Resilience: XLU’s inflow alongside its strong returns suggests investors are prioritizing stability over high-growth sectors, even as equities broadly attract capital.

Conclusion
This week’s fund flows may indicate a market balancing growth optimism and defensive positioning. The dominance of equity ETFs, particularly broad-market funds, suggests confidence in macroeconomic stability, while crypto inflows reflect a search for asymmetric returns. The focus on international equities and value-oriented strategies, alongside utilities, hints at a cautious yet opportunistic approach to portfolio diversification. However, the rationale for flows into flat- or low-performing assets like IWM and USHY remains unclear, underscoring the need for further context on investor sentiment.