ETF Flows Surge as Fixed Income Attracts Nearly $8 Billion
- Fixed-income ETFs dominated with $7.8 billion in inflows, while equity ETFs saw nearly $5 billion in outflows.
- Total ETF flows reached $12.3 billion last week, reversing the previous week's $10.5 billion outflow.
- Market turmoil from Trump's tariffs drove investors toward fixed-income safety.
Last week's ETF flows showed investors seeking shelter in fixed income while retreating from equity funds as market volatility spiked. According to data from etf.com, U.S. fixed-income ETFs attracted $7.8 billion in new money for the week ending April 7, making it the dominant category among ETF asset classes.
The shift in ETF flows reflects growing investor anxiety about President Donald Trump's new tariff policies and their potential impact on the economy, with many seeking the relative safety of bond funds amid fears of prolonged market turbulence.
The total ETF flows for the week reached $12.3 billion, marking a reversal from the previous week when funds experienced outflows of $10.5 billion.
Investors Flee Equity ETFs While Embracing Bonds
Equity exchange-traded funds saw large redemptions, with U.S. equity funds losing nearly $5 billion as investors reacted to market declines. The SPDR S&P 500 ETF Trust (SPY) led redemptions with more than $12.3 billion in outflows, according to etf.com data.
Despite SPY's massive outflows, other S&P 500 ETFs attracted new money. The iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO) saw inflows of $3.2 billion and $2 billion, respectively.
Market volatility increased dramatically last week, with the S&P 500 dropping more than 10% over just two sessions. The major market decline coincided with the implementation of new tariff policies affecting global trade relations.
Meanwhile, leveraged ETFs attracted $3.9 billion in new money, with the Direxion Daily Semiconductor Bull 3x Shares (SOXL) gathering $1.2 billion despite market declines.
The shift toward fixed income came as investors sought shelter from equity market turbulence. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) accumulated $1.4 billion in new assets.
Short-term Treasury ETFs dominated the inflow picture, with the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) collecting $2.3 billion and the iShares 0-3 Month Treasury Bond ETF (SGOV) adding $1.2 billion.
Top 10 Creations (All ETFs)
| Ticker | Name | Net Flows ($, mm) | AUM ($, mm) | AUM % Change< |
| IVV | iShares Core S&P 500 ETF | 3,188.74 | 560,427.11 | 0.57 |
| TQQQ | ProShares UltraPro QQQ | 2,554.04 | 19,625.65 | 13.01 |
| BIL | SPDR Bloomberg 1-3 Month T-Bill ETF | 2,349.77 | 43,288.91 | 5.43 |
| VOO | Vanguard S&P 500 ETF | 2,018.54 | 598,646.95 | 0.34 |
| LQD | iShares iBoxx $ Investment Grade Corporate Bond ETF | 1,423.82 | 30,884.51 | 4.61 |
| SGOV | iShares 0-3 Month Treasury Bond ETF | 1,239.46 | 40,457.25 | 3.06 |
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | 1,201.41 | 5,928.83 | 20.26 |
| SPLG | SPDR Portfolio S&P 500 ETF | 1,005.84 | 57,144.57 | 1.76 |
| RSP | Invesco S&P 500 Equal Weight ETF | 740.89 | 70,147.61 | 1.06 |
| VTIP | Vanguard Short-Term Inflation-Protected Securities ETF | 738.38 | 14,392.53 | 5.13 |
Top 10 Redemptions (All ETFs)
| Ticker | Name | Net Flows ($, mm) | AUM ($, mm) | AUM % Change |
| SPY | SPDR S&P 500 ETF Trust | -12,319.92 | 544,827.77 | -2.26 |
| IWM | iShares Russell 2000 ETF | -2,235.54 | 58,724.04 | -3.81 |
| QQQ | Invesco QQQ Trust Series I | -2,031.22 | 283,980.72 | -0.72 |
| TLT | iShares 20+ Year Treasury Bond ETF | -1,466.10 | 51,348.04 | -2.86 |
| IVW | iShares S&P 500 Growth ETF | -999.59 | 48,595.52 | -2.06 |
| IGV | iShares Expanded Tech-Software Sector ETF | -811.60 | 8,959.57 | -9.06 |
| GOVT | iShares U.S. Treasury Bond ETF | -608.64 | 26,745.91 | -2.28 |
| QLD | ProShares Ultra QQQ | -592.22 | 5,387.37 | -10.99 |
| IGSB | iShares 1-5 Year Investment Grade Corporate Bond ETF | -564.12 | 21,526.32 | -2.62 |
| BBAG | JPMorgan BetaBuilders U.S. Aggregate Bond ETF | -452.87 | 1,099.30 | -41.20 |
ETF Weekly Flows By Asset Class
| Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
| Alternatives | 113.57 | 9,922.87 | 1.14% |
| Asset Allocation | 109.94 | 23,007.14 | 0.48% |
| Commodities ETFs | 599.37 | 199,541.15 | 0.30% |
| Currency | -131.67 | 103,127.93 | -0.13% |
| International Equity | 1,143.63 | 1,615,420.83 | 0.07% |
| International Fixed Income | -111.18 | 280,853.86 | -0.04% |
| Inverse | 560.50 | 15,110.84 | 3.71% |
| Leveraged | 3,868.34 | 94,723.07 | 4.08% |
| US Equity | -4,925.00 | 6,270,328.16 | -0.08% |
| US Fixed Income | 7,776.90 | 1,645,677.23 | 0.47% |
| Total: | 9,004.39 | 10,257,713.08 | 0.09% |
Disclaimer: All data as of 6 a.m. ET the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the exchanges.
