Treasury Bills and Tech ETFs See Significant Outflows as Year-End Positioning Continues

ETF Daily Fund Outflow ReportDate: December 30, 2025

Market Overview

Today’s net fund outflows spanned a mix of short-term Treasury instruments, equity-focused products, and leveraged thematic ETFs, reflecting a broad but uneven shift in investor positioning. While outflows from Treasury bills (TBIL, XBIL) suggest potential rotation away from ultra-short-duration fixed income, equity-linked ETFs such as IWM, QQQ, and TQQQ—covering small-cap and tech exposures—also saw substantial redemptions. Leveraged products like UYG (financials) and USHY (high yield bonds) joined the list, hinting at possible profit-taking or risk-adjustment amid year-end portfolio rebalancing.

The absence of a dominant sector-specific pattern underscores a fragmented market sentiment, with investors potentially trimming positions across multiple asset classes ahead of the year’s close.

ETF Highlights

1. TBIL - F/m US Treasury 3 Month Bill ETF As the largest outflow recipient, TBIL’s $6.3 billion in assets under management (AUM) reflects its role as a liquidity proxy for ultra-short-term U.S. debt. The ETF’s near-zero price change (0.04%) contrasts with its massive outflow, which may indicate investors rolling over maturing positions or shifting toward longer-dated Treasuries. Its minimal YTD performance (-0.04%) suggests limited returns, potentially prompting investors to reallocate toward higher-yielding alternatives.

2. IWM - iShares Russell 2000 ETF The Russell 2000 ETF, tracking small-cap equities, faced an $821 million outflow despite a 12.25% intraday price gain. With $75 billion in AUM, the outflow could signal reduced risk appetite for smaller stocks, particularly as year-end tax-loss harvesting or rebalancing strategies take precedence. Its YTD performance (-5.3%) may also contribute to softer demand, as investors reassess small-cap valuations.

3. UYG - ProShares Ultra Financials This 2x leveraged financials ETF saw $805.5 million in outflows, despite an 8.85% price rise and a YTD gain of 14.2%. The outflow may reflect profit-taking in a sector that has benefited from rising interest rates, or a strategic shift away from leveraged products as volatility wanes. Its $814 million AUM highlights its niche appeal, with redemptions possibly driven by tactical adjustments.

4. XBIL - F/m US Treasury 6 Month Bill ETF The second-largest Treasury outflow ($764.4 million) hit XBIL, a 6-month bill ETF with $751.6 million in AUM. Like TBIL, its minimal price movement (0.05%) suggests investors may be exiting short-term fixed income to pursue higher-yielding opportunities. The outflow could also align with seasonal liquidity needs or portfolio duration adjustments.

5. QQQ - Invesco QQQ Trust The Nasdaq-100-linked QQQ faced $468 million in outflows despite a 21.16% intraday gain and a YTD performance of -5.3%. Its massive $409.99 billion AUM makes it a bellwether for tech exposure, and the outflow may indicate profit-taking after a sharp rebound or a shift toward more defensive assets. The ETF’s size also means even modest redemptions can dominate rankings.

6. TQQQ - ProShares UltraPro QQQ This 3x leveraged Nasdaq-100 ETF saw $199.4 million in outflows, despite a 36.74% price surge and a YTD gain of 14.2%. The outflow could signal risk-off behavior in leveraged tech products, as investors lock in gains or reduce exposure to volatile structures. Its $30.67 billion AUM suggests sustained interest, but redemptions may reflect tactical caution.

7. USHY - iShares Broad USD High Yield Corporate Bond ETF USHY, tracking high yield corporate bonds, faced $158.4 million in outflows despite a 1.74% price gain and a YTD performance of -5.3%. The outflow may indicate caution in credit markets, particularly as investors reassess risk premiums. Its $25.5 billion AUM underscores its role as a liquidity hub for high yield, with redemptions possibly linked to sector rotation.

8. JAVA - JPMorgan Active Value ETF JAVA, an active value-oriented equity ETF, saw $136.2 million in outflows despite a 14.23% price rise and a YTD gain of 14.2%. The outflow could reflect underperformance relative to passive benchmarks or shifting investor preferences toward index-linked strategies. Its $5.38 billion AUM suggests active management may struggle to attract capital amid market trends favoring broad indices.

9. BUFG - FT Vest Buffered Allocation Growth ETF BUFG, a buffered allocation product, faced $134.2 million in outflows despite a 12.78% price gain and a YTD performance of -5.3%. The outflow may signal reduced demand for structured products as investors favor direct equity or bond exposure. Its $301.6 million AUM highlights its niche appeal, with redemptions possibly tied to changing risk preferences.

10. SLV - iShares Silver Trust SLV, tracking physical silver, saw $130.9 million in outflows despite a staggering 161.98% intraday price jump and a YTD gain of 14.2%. The outflow could indicate profit-taking after a sharp rally or a shift away from commodities as year-end strategies crystallize gains. Its $39.11 billion AUM underscores silver’s role as a liquid proxy, but redemptions may reflect tactical exits.

Notable Trends / Surprises

The top 10 outflows included three Treasury bill ETFs (TBIL, XBIL, and a 6-month variant), three Nasdaq-linked products (QQQ, TQQQ, and IWM), and two leveraged structures (UYG, BUFG). This mix suggests a broad rotation away from short-term fixed income, leveraged equities, and commodities, with silver’s outflow despite a record intraday gain standing out as a potential profit-taking signal.

Conclusion

Today’s outflows highlight a diversified shift in investor positioning, spanning short-term Treasuries, small-cap equities, leveraged financials, and commodities. The combination of large AUM ETFs (e.g., QQQ, IWM) and niche products (e.g., UYG, BUFG) may indicate year-end portfolio adjustments, with investors reducing exposure to high-performing or leveraged assets. While the data does not confirm a single macro narrative, the breadth of outflows could point to a cautious approach to risk, profit-taking in strong performers, or structural rebalancing ahead of the new year.