ETF Inflows Resilient Amid April's Quick Ups and Downs

April was a rollercoaster for markets. The S&P 500 dropped as much as 11% during the month before clawing its way back to finish down less than 0.7%. Despite the turbulence, ETF flows showed investors stayed the course, albeit a bit more cautiously.

U.S.-listed ETFs pulled in $62 billion during the month—a solid showing even if down from the $96 billion seen in March. That brought year-to-date inflows to $355 billion, keeping 2024 on pace for one of the strongest years on record for ETF demand.

Vanguard Dominates (Again)

At the top of the leaderboard was the Vanguard S&P 500 ETF (VOO), which raked in $20.9 billion in April alone. Its appeal as a low-cost, broad-market play continues to resonate, especially in volatile markets. On a year-to-date basis, VOO has now amassed $55.7 billion in inflows, putting it on track for yet another $100+ billion year, a feat it achieved for the first time in 2024.

The Vanguard Total Stock Market ETF (VTI) also saw strong demand, with $5.1 billion in April inflows.

Flight to Safety

Amid heightened concerns about long-term interest rates during April, some investors sought shelter in the short end of the yield curve. 

The SPDR Bloomberg 1-3 Month Treasury Bill ETF (BIL) and the iShares 0-3 Month Treasury Bond ETF (SGOV) pulled in $6.6 billion and $5.5 billion, respectively.

The move reflected caution around longer-dated Treasurys, especially amid worries about tepid foreign demand and rising term premiums. Though yields cooled by month’s end, short-duration ETFs remained the go-to for risk-averse investors.

Mortgage ETF Shake-Up

In one of the most eye-catching moves of the month, the Schwab Mortgage-Backed Securities ETF (SMBS) pulled in a jaw-dropping $4.9 billion. A massive sum for an ETF that had just $52 million in assets at the start of the month. 

The flows appear to be part of a large institutional reallocation, as the Vanguard Mortgage-Backed Securities ETF (VMBS) simultaneously saw $4.8 billion in outflows.

Both funds track the same Bloomberg index, so the switch likely reflects portfolio or platform-level adjustments rather than a directional bet on mortgage-backed securities.

Traders Buy the Dip

On the riskier side of the spectrum, some traders pounced on the tech pullback. The Direxion Daily Semiconductor Bull 3x Shares (SOXL) pulled in $3.2 billion in April as bulls attempted to time a rebound in the beaten-down semiconductor sector.

For a full list of the top inflows for April, see the table below.

April ETF Inflow Leaders—Source: FactSet