ETF Showdown: VOO, SPY Lead Weekly Flows in Opposite Directions

Vanguard's S&P 500 ETF is poised to overtake State Street's SPDR S&P 500 Trust as the world's most widely held exchange-traded fund any day now.

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DJ
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Finance Reporter
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Reviewed by: Paul Curcio
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Edited by: Kiran Aditham

The Vanguard S&P 500 ETF (VOO) topped all equity ETF inflows with $4.7 billion for the week of Jan. 20, while the world's largest ETF, the SPDR S&P 500 ETF Trust (SPY), landed at the bottom with $7.3 billion in outflows, according to data from etf.com's Pulse Tool.

The latest weekly flows highlight an ongoing shift in investor preference between the two largest ETFs in the market, with VOO holding nearly $618 billion in assets compared to SPY's $635 billion, etf.com data show.

The drastic contrast in weekly activity shows how cost-conscious retail investors and financial advisors increasingly favor VOO's 0.03% expense ratio over SPY's 0.09% fee structure, pushing VOO to the brink of becoming the world's largest ETF.

With about $17 billion separating the two funds' assets under management, VOO's consistent inflows versus SPY's recent outflows suggest a historic shift in ETF market leadership is drawing near.

Weekly Fund Flows Show Market Shifts

Technology sector optimism, driven largely by artificial intelligence developments, fueled growth in tech-sector funds. The Invesco QQQ Trust (QQQ) attracted $1.2 billion in new assets, while the VanEck Semiconductor ETF (SMH) attracted $1 billion for the week, according to etf.com figures. The SPDR Portfolio S&P 500 ETF (SPLG) gathered just over $1 billion. 

ETF Pulse Tool Weekly Top Performance Results

Recent executive actions on domestic energy policy may have contributed to outflows in the energy sector, as the Energy Select Sector SPDR Fund (XLE) lost $639.84 million, etf.com data show.

Meanwhile, uncertainty around interest rates and potential regulatory changes weighed on financial sector funds, with the SPDR S&P Regional Banking ETF (KRE) seeing $441.97 million in redemptions, according to etf.com figures.

The iShares MSCI EAFE ETF (EFAV) also saw $754.52 million in outflows, while the iShares Russell 2000 ETF (IWM) experienced $1.7 billion in redemptions for the week, etf.com data reveal.

The JPMorgan International Research Enhanced Equity ETF (JIRE) rounded out the week's notable moves with $294.23 million in outflows, according to etf.com data.

ETF Pulse Tool Weekly Bottom Performance Results

A graduate of The University of Texas, Arlington with a BA in Communications, DJ has covered retirement plans, mortgage news, and financial advisor trends. His background includes producing daily content, managing newsletters, and engaging with industry experts. DJ is excited to contribute to ETF coverage and learn more about the $10-trillion-dollar ETF industry. Outside of work, he enjoys exploring New York City's food scene, anime, and video games. 

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