Investors funnelled nearly $19 billion into U.S.-listed ETFs during the week ending August 8, bringing year-to-date inflows to over $696 billion. Fixed income ETFs dominated, attracting $15.3 billion—roughly seven times the $2.2 billion that flowed into U.S. equity ETFs.
Equity markets saw mixed movement: the S&P 500 returned to its late-July record high without surpassing it, while the Nasdaq 100 reached fresh all-time highs. Bond rates remained steady amid growing expectations of a Federal Reserve rate cut in September, with the CME FedWatch Tool indicating over a 90% probability of a reduction.
Among individual ETFs, the Communication Services Select Sector SPDR Fund (XLC) led inflows with $3.8 billion, driven by strong performances from Alphabet and Meta. The Vanguard S&P 500 ETF (VOO) followed with $3.3 billion, while short-term bond ETFs such as iShares 0-3 Month Treasury Bond ETF (SGOV) and SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) also saw significant inflows. Investment-grade and high-yield corporate bond ETFs like LQD and HYG added more than $1 billion each.
Outflows were concentrated in some major equity and leveraged ETFs, with SPDR S&P 500 ETF Trust (SPY) seeing a $11.3 billion withdrawal and Invesco QQQ Trust (QQQ) losing $3.5 billion.
Overall, U.S. fixed income ETFs remain the standout beneficiaries of investor flows, reflecting strong demand for yield in anticipation of Fed rate cuts, while equity ETFs experienced mixed sentiment with selective sector and mega-cap stock interest.