Large-Cap and Tech ETFs Dominate Outflows as Crypto and High-Yield Sectors See Continued Drain

Date: December 19, 2025

Market Overview

Today’s ETF outflows were concentrated in large-cap equity, tech-heavy, and crypto-related funds, reflecting a potential shift in investor positioning. The top 10 outflow recipients included broad market benchmarks like the S&P 500 and Dow Jones, as well as NASDAQ 100 and health care sector funds. Crypto-focused ETFs and high-yield bond products also featured prominently, suggesting a mixed rotation away from growth-oriented and risk-on assets. While sector-specific movements are evident, no single asset class dominated the outflow list, with equity, crypto, and fixed-income themes all represented.

ETF Highlights

IVV - iShares Core S&P 500 ETFThe largest U.S. equity benchmark ETF experienced a net outflow of $3.08 billion, despite a 16.11% YTD gain and $723.66 billion in assets. The outflow may indicate profit-taking by investors locking in year-end gains from the broad market index, which has underpinned much of 2025’s equity rally.

DIA - SPDR Dow Jones Industrial Average ETF TrustThe blue-chip industrial average ETF saw $1.16 billion in outflows, even as it rose 13.08% YTD with $43.79 billion in AUM. The move could signal a tactical rebalancing away from cyclical sectors, particularly as industrial stocks have benefited from macroeconomic resilience this year.

QQQM - Invesco NASDAQ 100 ETFThe tech-heavy NASDAQ 100 ETF lost $615.8 million, despite a robust 20.74% YTD performance and $69.12 billion in assets. The outflow might reflect caution around overbought conditions in growth stocks, which have driven much of the year’s market momentum.

XLE - State Street Energy Select Sector SPDR ETFEnergy sector exposure via XLE declined by $393.2 million, despite a 3.04% YTD gain and $26.04 billion in AUM. The outflow could suggest reduced near-term conviction in energy markets, even as the sector has benefited from sustained demand and geopolitical dynamics.

FBTC - Fidelity Wise Origin Bitcoin Fund

The bitcoin-linked ETF faced $230.1 million in outflows, aligning with its -5.99% YTD underperformance and $17.38 billion in assets. The continued drain may indicate risk-off sentiment toward crypto assets, which have struggled to regain traction amid broader market gains.

ETHA - iShares Ethereum Trust ETFEthereum’s dedicated ETF lost $221.3 million, despite $10.07 billion in assets, as its -10.48% YTD decline deepened. The outflow possibly reflects waning interest in altcoins relative to bitcoin, with investors favoring more established digital assets or traditional equities.

USHY - iShares Broad USD High Yield Corporate Bond ETFThe high-yield bond ETF saw $213.0 million in outflows, despite a modest 1.28% YTD gain and $25.62 billion in assets. The move might signal a shift toward safer fixed-income allocations, even as high-yield bonds have offered attractive yields in 2025.

IBIT - iShares Bitcoin Trust ETFBitcoin’s largest ETF by AUM ($65.98 billion) lost $210.7 million, with its -5.92% YTD performance mirroring broader crypto weakness. The outflow could underscore ongoing skepticism toward digital assets, despite their strategic appeal for diversified portfolios.

XLV - State Street Health Care Select Sector SPDR ETFHealth care sector exposure fell by $171.7 million, despite a 12.63% YTD gain and $39.90 billion in assets. The outflow may indicate sector rotation away from defensive plays as investors reassess growth prospects in a shifting rate environment.

XLF - State Street Financial Select Sector SPDR ETFFinancials, up 13.47% YTD with $52.78 billion in assets, saw $145.8 million in outflows. The move could reflect profit-taking in a sector that has benefited from higher interest rates, with investors potentially anticipating near-term volatility.

Notable Trends / Surprises

The presence of four tech-linked ETFs (IVV, QQQM, XLV, DIA) among the top outflows highlights ongoing profit-taking in growth-oriented assets. Simultaneously, crypto funds (FBTC, ETHA, IBIT) and high-yield bonds (USHY) featured prominently, suggesting a dual trend of risk-off positioning and sector-specific rebalancing. The absence of Treasury or international-focused ETFs in the list underscores that today’s outflows were largely confined to domestic equities and alternative assets.

Conclusion

Today’s outflows may indicate a tactical shift away from overbought equity benchmarks, tech-driven growth stories, and crypto assets, with investors potentially prioritizing balance-sheet discipline or sector diversification. The magnitude of the outflows, coupled with strong YTD performances in several funds, could point to year-end portfolio adjustments. However, the mixed performance across asset classes—ranging from struggling crypto to resilient financials—suggests no single narrative is driving the moves, with positioning likely shaped by individual investor strategies rather than broad macro shifts.