ETF investors remained highly active last week, adding $18.3 billion to U.S.-listed funds in the five days ending August 22. This pushed year-to-date ETF inflows past $750 billion, putting 2025 on track to potentially set a new annual record.
U.S. equity ETFs led the charge with $8.7 billion in net inflows. The Vanguard S&P 500 ETF (VOO) topped the leaderboard, attracting $2.5 billion as U.S. markets hovered near record highs.
International equity ETFs also performed well, particularly the Vanguard FTSE Developed Markets ETF (VEA), which brought in $940 million. VEA has been a strong performer in 2025, reaching an all-time high last week and delivering a 25% year-to-date return—more than double that of U.S. equity benchmarks.
Fixed income ETFs attracted nearly as much investor attention, bringing in $6.9 billion. Markets responded to Fed Chair Jerome Powell’s Jackson Hole speech, interpreting his balanced tone as a signal that rate cuts may arrive as early as next month. This sparked widespread bond buying.
In the week ending August 22, U.S.-listed ETFs saw $18.3 billion in net inflows across all asset classes, representing a 0.15% increase in total assets under management (AUM) of $12 trillion.
U.S. equity ETFs led with $8.7 billion in inflows, reflecting continued investor confidence in domestic markets. U.S. fixed income ETFs followed closely, adding $6.9 billion, as expectations of potential interest rate cuts drove demand for bonds.
International fixed income ETFs saw strong inflows of $2.2 billion, suggesting growing interest in global bond exposure. International equity ETFs also attracted $1.5 billion, though that represented just 0.07% of their total AUM.
Leveraged ETFs recorded $1.5 billion in inflows, while alternative strategies and asset allocation ETFs brought in smaller amounts of $261 million and $137 million, respectively.
On the downside, currency ETFs saw the largest outflows, shedding $1.6 billion (a 0.92% drop in AUM), likely due to reduced hedging activity or shifts in macro views. Inverse ETFs lost $643 million, and commodities ETFs dropped $674 million, continuing a trend of declining interest in non-equity inflation hedges.
Overall, flows show strong risk-on sentiment with investors favoring equities and bonds while pulling back from hedges like commodities, currencies, and inverse strategies.
Key beneficiaries included:
- Capital Group Municipal High-Income ETF (CGHM): +$1.8 billion
- Vanguard Intermediate-Term Corporate Bond ETF (VCIT): +$1.2 billion
- iShares 0-3 Month Treasury Bond ETF (SGOV): +$1.1 billion
Other segments saw solid inflows as well:
- International fixed income ETFs: +$2.2 billion
- Leveraged ETFs: +$1.5 billion
Overall, investor appetite remained strong across asset classes, with flows reflecting optimism in equity markets and a growing belief in near-term easing by the Federal Reserve.
Here’s a summary of the Top 10 ETF creations (net inflows) from the latest data:
- Vanguard S&P 500 ETF (VOO) led the pack with $2.51 billion in net inflows, reinforcing continued demand for broad U.S. large-cap exposure. Its assets under management (AUM) now stand at $723.8 billion, up 0.35%.
- Capital Group Municipal High-Income ETF (CGHM) saw the second-highest inflows with $1.83 billion, growing its AUM by an impressive 88.44% to $2.07 billion, reflecting strong demand for tax-advantaged income.
- Vanguard Intermediate-Term Corporate Bond ETF (VCIT) added $1.15 billion, boosting AUM to $56.86 billion (2.03% growth), highlighting interest in credit duration exposure amid shifting interest rate expectations.
- iShares 0-3 Month Treasury Bond ETF (SGOV) brought in $1.06 billion, reaching $55.96 billion AUM (up 1.89%), indicating ongoing demand for cash-like instruments with low risk.
- Vanguard FTSE Developed Markets ETF (VEA) attracted $939.83 million, growing AUM to $171.86 billion (0.55% increase), suggesting renewed interest in international developed markets.
- iShares Core S&P 500 ETF (IVV) had $838.15 million in inflows, with modest AUM growth to $651.47 billion (0.13%).
- SPDR Portfolio S&P 500 ETF (SPLG) received $808.81 million, pushing its AUM to $81.71 billion (up 0.99%).
- Vanguard Growth ETF (VUG) gained $625.94 million in inflows, increasing AUM to $183.02 billion (0.34% growth), reflecting appetite for growth stocks.
- Schwab U.S. Large-Cap Growth ETF (SCHG) added $600.26 million, with AUM rising 1.28% to $46.95 billion.
- Tema S&P 500 Historical Weight ETF (DSPY) saw $593.33 million in inflows, growing its AUM to $13.71 billion (4.33% increase), suggesting interest in alternative index strategies.
Key Trend: Investors continue to favor U.S. large-cap equities, tax-efficient income, and low-duration bonds.