ETF Weekly Fund Inflow Report Date: 2025-11-03 The Weekly Report's Time Range: 10.27-10.31 Headline: Growth and Tech ETFs Attract Bulk of Inflows as Risk Appetite Outpaces Bond Demand

Market Overview
Investor sentiment during the week of October 27–31 appeared tilted toward risk assets, with the majority of net inflows concentrated in growth-oriented equity and technology-focused ETFs. While large-cap growth and S&P 500 exposures dominated flows, bond ETFs such as intermediate-term Treasuries and municipal bonds saw muted activity, suggesting caution or selective positioning in fixed income. The absence of major macroeconomic announcements or earnings seasons during the period left sector-specific momentum—particularly in technology—as a primary driver of fund flows.

ETF Highlights
The week’s top inflows were led by the Schwab U.S. Large-Cap Growth ETF (SCHG), which combines exposure to growth-oriented large-cap equities with a low-cost structure. Its 19.77% year-to-date (YTD) gain, coupled with $54.24 billion in assets under management (AUM), underscores its appeal as a core holding for investors seeking growth equity exposure without the volatility of smaller names. Similarly, the Invesco QQQ Trust (QQQ), tracking the Nasdaq-100, attracted significant capital, reflecting continued demand for concentrated tech growth. QQQ’s 23.14% YTD return and $410.76B AUM highlight its role as a liquidity magnet during periods of tech-sector strength.

The Technology Select Sector SPDR Fund (XLK) further reinforced the tech tilt, surging 29.34% YTD while managing $97.03B in assets. Its performance aligns with broader market rotation toward innovation-driven sectors, though its active management and sector-specific focus may appeal to investors seeking amplified exposure. In contrast, the JPMorgan BetaBuilders Europe ETF (BBEU) stood out as an anomaly, drawing inflows despite its 26.54% YTD gain. Its relatively modest $8.14B AUM suggests niche demand for European equities, possibly reflecting undervaluation or regional catalysts.

Fixed-income allocations remained sparse, with the Schwab Intermediate-Term U.S. Treasury ETF (SCHR) and iShares U.S. Treasury Bond ETF (GOVT) posting meager 3.68% and 0.94% YTD returns, respectively. Their inflows, while modest, may indicate defensive positioning amid uncertainty, though the JPMorgan Municipal ETF (JMUB)’s 0.99% YTD return and $6.07B AUM suggest limited appetite for tax-advantaged municipal bonds. Meanwhile, broad market benchmarks like the Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF Trust (SPY) continued to attract capital, with VOO’s $799.87B AUM and SPY’s $693.05B AUM reinforcing their roles as default core holdings for passive strategies.

Notable Trends / Surprises
The week’s data highlighted a clear bifurcation: growth and tech ETFs with double-digit YTD returns dominated inflows, while bond and municipal funds lagged. The JPMorgan Europe ETF’s inclusion in the top 10 also signaled a potential rotation toward international equities, a departure from recent U.S.-centric trends. However, the lack of significant inflows into small-cap or value-oriented ETFs suggests investors remain anchored to established growth leaders.

Conclusion
The week’s fund flows point to a market environment where growth equity and technology sectors remain the primary beneficiaries of risk-on sentiment. The strong YTD performance of top inflow recipients, combined with their substantial AUM, indicates both sustained confidence in these themes and a preference for liquidity and scale. While bond ETFs saw limited action, the continued inflows into S&P 500 proxies like VOO and SPY suggest investors are maintaining core equity exposure as a baseline. Overall, the data may reflect a strategy of capital preservation through large-cap growth, with tech as the linchpin of near-term optimism.