ETF Weekly Fund Inflow Report

Date: 2025-09-29
The Weekly Report's Time Range: 9.22-9.

Market Overview
Investor sentiment during the week of September 22–26 appeared cautiously optimistic, with net inflows heavily favoring equity-focused ETFs over fixed income. The top 10 ETFs by inflow were dominated by broad market, growth-oriented, and international exposure vehicles, suggesting a strategic shift toward risk assets. While no major macroeconomic announcements or earnings seasons were explicitly noted in the provided data, the strong year-to-date (YTD) performance of several growth and international ETFs may have reinforced investor confidence. Notably, bond-focused ETFs like LQD attracted inflows but lagged behind equity peers in both scale and YTD returns, reflecting a possible tilt toward equities amid expectations of sustained market momentum.

ETF Highlights
The Invesco QQQ Trust (QQQ) led the week’s inflows, aligning with its role as a concentrated bet on growth-oriented technology and innovation stocks. Its 16.58% YTD gain and $381.35B in assets under management (AUM) underscore its appeal as a proxy for the Nasdaq-100’s outperformance, potentially drawing capital from investors seeking exposure to high-growth sectors. Similarly, the iShares A.I. Innovation and Tech Active ETF (BAI) attracted inflows despite its smaller $5.91B AUM, likely reflecting niche demand for AI and tech innovation themes. BAI’s 24.70% YTD return, the highest among the top 10, may have further incentivized flows into this specialized corner of the market.

Broad-based equity ETFs also dominated, with the SPDR S&P 500 ETF Trust (SPY) and iShares Core S&P 500 ETF (IVV) collectively managing $668.48B and $667.75B in AUM. Their inflows highlight enduring demand for core U.S. equity exposure, particularly as both funds posted 12.91% and 12.95% YTD returns, respectively. The SPDR Portfolio S&P 500 Growth ETF (SPYG), with a 17.94% YTD gain and $43.39B AUM, further signaled a preference for growth-oriented segments of the S&P 500, while its value counterpart, SPYV, saw more modest inflows despite a 7.61% YTD return, suggesting a growth tilt within the S&P 500 space.

International and emerging market ETFs also captured significant attention. The Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard FTSE Developed Markets ETF (VEA) posted YTD gains of 21.58% and 24.24%, respectively, with AUM of $101.65B and $177.66B. Their inflows may reflect a strategic rebalancing toward global equities, particularly as developed markets outperformed their emerging counterparts in YTD returns. Meanwhile, the iShares Russell 2000 ETF (IWM), focused on small-cap U.S. equities, attracted inflows despite a more modest 9.23% YTD return, potentially indicating a search for growth in smaller, more agile companies.

The lone bond ETF in the top 10, iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), saw inflows despite a muted 4.09% YTD return. Its $31.54B AUM and role as a staple of income-focused portfolios may have supported steady demand, though its relatively low YTD performance suggests fixed income remained a secondary priority for the week.

Notable Trends
The week’s inflows highlighted a clear preference for growth and innovation themes, with four of the top 10 ETFs—QQQ, BAI, SPYG, and VEA—posting YTD returns above 17%. This contrasts with more defensive or value-oriented ETFs like SPYV and IWM, which, while attracting capital, lagged in performance. Additionally, the prominence of both emerging and developed market ETFs (VWO and VEA) suggests a balanced approach to global diversification, with investors capitalizing on cross-border opportunities amid a backdrop of strong international equity performance.

Conclusion
The week’s fund flows point to a market positioning increasingly skewed toward growth equities, particularly in technology and innovation-driven sectors, as well as a strategic embrace of global equity exposure. The strong YTD performance of top-performing ETFs appears to have reinforced investor conviction, with inflows into large-cap growth and international vehicles outpacing those into value or fixed income. While these trends may indicate a near-term preference for risk assets, the absence of significant bond ETF participation suggests caution persists, at least in part, among fixed-income allocators. Overall, the data reflects a market environment where momentum and innovation themes continue to drive capital allocation, with global equity markets serving as a key conduit for investor optimism.