Top ETFs Experience Net Outflows in the Week of December 1-5

Market Overview

Market activity in the week of December 1-5 showed a range of outflows across major ETFs, with large-cap equity and treasury assets seeing the most significant net outflows. The week’s largest outflow was recorded by the Vanguard S&P 500 ETF (VOO), followed closely by leveraged and sector-specific products.

Treasury-focused ETFs also experienced outflows, though the amounts were smaller in comparison to broader equity products. Performance varied widely across the group, with some ETFs reporting strong year-to-date returns.

While there were no direct macroeconomic signals embedded in the data, the outflows could suggest a shift in investor positioning or a reassessment of risk exposure in certain market segments. The largest outflows occurred in equity and leveraged products, which may indicate a relative pullback from high-growth or leveraged equity themes.

ETF Highlights

VOO, the Vanguard S&P 500 ETF, recorded the largest net outflow of $-1,426,516,100.00 in the week. Despite the outflow, the fund has a year-to-date return of 17.01% and an asset under management (AUM) of $825.00B. The outflow could suggest a temporary shift in investor preferences within large-cap equity markets.

SOXL, the Direxion Daily Semiconductor Bull 3X Shares, reported an outflow of $-866,806,300.00. The fund has delivered a year-to-date performance of 70.27% and holds $13.88B in AUM. The significant outflow may reflect a reassessment of leveraged exposure to the semiconductor sector.

XBI, the SPDR S&P Biotech ETF, saw an outflow of $-746,793,500.00. With a 37.03% YTD return and $7.86B in AUM, the outflow might indicate a pullback in investor confidence in biotech equities or a strategic reallocation.

IWM, the iShares Russell 2000 ETF, experienced a net outflow of $-713,305,400.00. The fund has a 13.49% YTD return and $71.94B in AUM. The outflow could suggest a shift in focus away from small-cap U.S. equities in the short term.

IVV, the iShares Core S&P 500 ETF, recorded an outflow of $-650,708,500.00. The fund has a YTD performance of 17.06% and an AUM of $736.51B. The outflow might reflect a broad reassessment of large-cap equity exposure among investors.

SCHO, the Schwab Short-Term U.S. Treasury ETF, saw a net outflow of $-564,454,000.00. With a 1.21% YTD return and $11.77B in AUM, the outflow could indicate a strategic shift in fixed-income positioning.

BIL, the SPDR Bloomberg 1-3 Month T-Bill ETF, recorded an outflow of $-543,656,900.00. The fund has a 0.10% YTD return and $43.05B in AUM. The outflow might reflect a broader shift away from ultra-short-term Treasury allocations.

SCHR, the Schwab Intermediate-Term U.S. Treasury ETF, had a net outflow of $-498,600,000.00. The fund has a 3.38% YTD return and $12.06B in AUM.

The outflow may suggest a reassessment of intermediate-duration fixed-income exposure.

WTV, the WisdomTree U.S. Value Fund, recorded an outflow of $-381,284,500.00. With a 11.50% YTD return and $2.09B in AUM, the outflow might reflect a shift away from value-oriented equity strategies.

IWD, the iShares Russell 1000 Value ETF, experienced a net outflow of $-379,067,800.00. The fund has a YTD performance of 13.69% and an AUM of $68.38B. The outflow could suggest a broader reassessment of value equity exposure.

Notable Trends / Surprises

Notable in the week’s data was the strong performance of SOXL, the leveraged semiconductor ETF, which reported a 70.27% YTD return but also the second-largest net outflow in the group. This combination might indicate a tactical rebalancing of leveraged equity positions. Treasury ETFs, including SCHO, BIL, and SCHR, also showed outflows, possibly signaling a shift in risk appetite or yield expectations. The top outflows were concentrated in large-cap and small-cap equity products, suggesting a broader shift away from equities in general.

Conclusion

Week of December 1-5 saw a mix of significant outflows across large-cap equities, leveraged products, and Treasury ETFs. While performance metrics were varied, the largest outflows came from funds with the largest AUM and strongest year-to-date returns. These movements may reflect a strategic rebalancing or a shift in investor risk tolerance, particularly in equity and fixed-income markets. Investors should continue to monitor flows and performance closely to assess underlying market sentiment.