On Monday, the Vanguard S&P 500 ETF (VOO) attracted a massive inflow of $14 billion as the S&P 500 posted its second consecutive day of gains with a 0.6% increase. This marks a substantial vote of confidence from investors amid a market rebound from recent correction lows. Other notable ETFs also saw significant inflows.
The iShares Russell 2000 ETF (IWM) garnered $841.4 million, while the Xtrackers USD High Yield Corporate Bond ETF (HYLB) pulled in $490.3 million. The Consumer Staples Select Sector SPDR Fund (XLP) accumulated $400.7 million. On the other hand, there were notable outflows as well.
Investors pour billions into VOO
Despite the market recovery, the iShares Core S&P 500 ETF (IVV) experienced the largest redemptions, shedding $15.2 billion. Treasury ETFs also saw outflows; the iShares U.S. Treasury Bond ETF (GOVT) lost $622.3 million, and Vanguard’s Intermediate-Term Treasury ETF (VGIT) saw outflows of $614.3 million.
Overall, U.S. equity ETFs led the asset classes with $1.9 billion in inflows, followed by commodities funds with $760.5 million. Conversely, currency ETFs experienced outflows totaling $223.7 million amid ongoing trade tensions. Industry-wide, total flows reached $2.2 billion, highlighting a cautious return to the market by investors.
This cautious optimism was bolstered by Treasury Secretary Scott Bessent’s comments that market corrections are “healthy.”
The financial markets continue to navigate previous lows, and this significant movement in ETF flows suggests investors are positioning themselves carefully amid ongoing economic and geopolitical factors.