Large Outflows Across Top S&P 500 and Growth-Focused ETFs

Date: 2025-12-28 The Weekly Report's Time Range: 12.22-12.26

Market Overview

This week saw substantial net outflows from a broad range of S&P 500 and growth-oriented ETFs, reflecting a pattern of investor activity that could indicate shifting positioning ahead of the year-end. The largest outflow was recorded in the Vanguard S&P 500 ETF (VOO), while several other S&P 500 and growth-themed ETFs also experienced significant redemptions. These outflows occurred against a backdrop of positive year-to-date performance across the group, with many of the affected ETFs showing double-digit returns. However, the scale of the outflows suggests potential caution or portfolio rebalancing among investors.

ETF Highlights

VOO - Vanguard S&P 500 ETF: The fund reported a net outflow of $23.34B this week, making it the largest outflow among the tracked ETFs. Despite a YTD performance of 17.82% and an AUM of $840.61B, the significant redemption might reflect investor adjustments or profit-taking in the broader S&P 500 exposure.

SPYM - State Street SPDR Portfolio S&P 500 ETF: This ETF recorded a net outflow of $6.64B for the week. With a YTD performance of 17.81% and an AUM of $97.24B, the outflow could indicate reduced demand for another core S&P 500 index product.

SPYV - State Street SPDR Portfolio S&P 500 Value ETF: The fund experienced a net outflow of $5.90B. Despite a YTD performance of 12.18% and an AUM of $31.96B, the redemption may suggest limited appetite for value-oriented segments of the S&P 500 index.

IVE - iShares S&P 500 Value ETF: This ETF had a net outflow of $4.60B. With a YTD performance of 12.21% and an AUM of $48.38B, the outflow might reflect ongoing investor caution or reallocation away from value strategies.

IVW - iShares S&P 500 Growth ETF: The fund recorded a net outflow of $3.33B. Despite a YTD performance of 23.11% and an AUM of $67.47B, the outflow could point to a moderation in growth equity demand.

VUG - Vanguard Growth ETF: A net outflow of $2.89B was noted this week. With a YTD performance of 20.62% and an AUM of $206.17B, the outflow might reflect a broader shift in capital allocation, even as the ETF delivered strong returns.

MOAT - VanEck Morningstar Wide Moat ETF: This ETF experienced a net outflow of $2.88B. With a YTD performance of 12.90% and an AUM of $13.01B, the outflow could suggest investor skepticism toward the moat-focused investment thesis or a reallocation within equity strategies.

SPYG - State Street SPDR Portfolio S&P 500 Growth ETF: The fund reported a net outflow of $2.55B. Despite a YTD performance of 23.08% and an AUM of $45.96B, the outflow might indicate reduced inflow momentum for this growth-focused S&P 500 variant.

SMH - VanEck Semiconductor ETF: This ETF saw a net outflow of $2.30B. With a YTD performance of 51.08% and an AUM of $37.57B, the outflow may reflect investor caution or profit-taking in the high-performing tech sector.

VXF - Vanguard Extended Market ETF: The fund recorded a net outflow of $1.96B. Despite a YTD performance of 12.32% and an AUM of $25.48B, the outflow could indicate reduced interest in extended market exposure as investors consolidate positions in core indices.

Notable Trends / Surprises

One notable trend is the consistent outflow pattern across both broad S&P 500 and growth-oriented ETFs, which might reflect a broader shift in risk tolerance or portfolio rebalancing efforts. While the Semiconductor ETF (SMH) delivered the highest YTD performance at 51.08%, it still recorded a significant outflow, possibly indicating investor caution despite strong returns. The outflows from both growth and value segments suggest that no single S&P 500 strategy was spared, and this balanced withdrawal could reflect a neutral shift rather than a directional move.

Conclusion

The week ended with widespread outflows from some of the largest S&P 500 and growth-focused ETFs, despite positive YTD performance across the group. These outflows may indicate a shift in investor positioning ahead of the year-end or a general pullback in equity exposure. As the market approaches the end of the year, continued monitoring of fund flows will be key to understanding evolving investor sentiment and strategy shifts.