The Great Rotation? Small-Cap Performance Outpaces Large-Cap Flows

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Weekly Channel Summary

The U.S. Size & Style ETF channel, currently consisting of 939 ETFs across 260 brands, manages a total of $7,288 billion in assets. The past week saw significant activity with a total net outflow of $9.44 billion, primarily driven by profit-taking in the Large Cap segments. Despite the weekly dip, the channel’s long-term health remains robust, boasting a 1-year net inflow of $555.72 billion. Year-to-date, the channel is essentially flat, showing a slight net outflow of $0.26 billion as investors recalibrate their exposures for the new year.

This Week’s Performance Leaders and Laggards

Performance this week favored smaller cap segments, as the U.S. Small Cap – Value category led the channel with a return of 4.29%. Small-cap growth followed closely, posting a 4.10% gain. Conversely, the Large Cap segments lagged the broader market, with U.S. Large Cap – Growth serving as the primary laggard, returning 1.77%. Year-to-date, all categories remain in positive territory, with small-cap growth maintaining the strongest overall start at 5.12%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
U.S. Small Cap – Value 4.29% 4.88% 8.23% 12.16% 5.08% 12.47%
U.S. Small Cap – Growth 4.10% 3.69% 5.81% 13.04% 5.12% 13.63%
U.S. Small Cap – Blend 3.98% 4.08% 6.56% 11.61% 4.76% 13.31%
U.S. Mid Cap – Blend 3.22% 4.53% 5.90% 9.64% 4.36% 12.34%
U.S. Mid Cap – Value 3.21% 4.92% 6.96% 9.48% 4.35% 12.80%
U.S. Mid Cap – Growth 2.91% 3.08% 1.66% 7.39% 4.36% 11.46%
U.S. Large Cap – Value 2.14% 3.96% 6.04% 10.03% 2.91% 16.28%
U.S. Large Cap – Blend 1.97% 2.68% 3.92% 10.21% 2.37% 16.14%
U.S. Large Cap – Growth 1.77% 1.14% 1.35% 10.42% 2.03% 17.51%

Top & Bottom ETFs by Weekly Performance

At the fund level, the Roundhill Meme Stock ETF (MEME) was the standout performer in the Large Cap space, surging 14.09%, while GQG US Equity ETF (GQGU) slipped -0.33%. In Mid Caps, the Invesco S&P Spin-Off ETF (CSD) led with a 6.58% gain, while the Invesco S&P MidCap Momentum ETF (XMMO) managed only a 0.62% rise. Small Caps saw the Towle Value ETF (TCV) climb 7.89%, whereas iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV) lagged with a 2.11% return.

Large Cap Performance

Ticker Fund Name WTD Performance
Top Performers
MEME Roundhill Meme Stock ETF 14.09%
FCUS Pinnacle Focused Opportunities ETF 7.12%
CPAI Counterpoint Quantitative Equity ETF 6.72%
RVER Trenchless Fund ETF 6.56%
MVPA Miller Value Partners Appreciation ETF 5.40%
Bottom Performers
GQGU GQG US Equity ETF -0.33%
DIVZ Opal Dividend Income ETF -0.01%
FDVV Fidelity High Dividend ETF 0.22%
ABOT Abacus FCF Innovation Leaders ETF 0.25%
TOPT iShares Top 20 U.S. Stocks ETF 0.27%

Mid Cap Performance

Ticker Fund Name WTD Performance
Top Performers
CSD Invesco S&P Spin-Off ETF 6.58%
MGMT Ballast Small/Mid Cap ETF 6.41%
CCFE Concourse Capital Focused Equity ETF 5.39%
ISMD Inspire Small/Mid Cap ETF 5.09%
SAEF Schwab Ariel Opportunities ETF 4.81%
Bottom Performers
XMMO Invesco S&P MidCap Momentum ETF 0.62%
IPO Renaissance IPO ETF 0.86%
TMVE Thrivent Mid Cap Value ETF 1.52%
QQJG Invesco ESG NASDAQ Next Gen 100 ETF 1.65%
VOT Vanguard Mid-Cap Growth ETF 1.67%

Small Cap Performance

Ticker Fund Name WTD Performance
Top Performers
TCV Towle Value ETF 7.89%
RZV Invesco S&P Smallcap 600 Pure Value ETF 6.33%
TMFS Motley Fool Small-Cap Growth ETF 5.75%
RWJ Invesco S&P SmallCap 600 Revenue ETF 5.43%
GSC Goldman Sachs Small Cap Equity ETF 5.43%
Bottom Performers
SMMV iShares MSCI USA Small-Cap Min Vol Factor ETF 2.11%
XSLV Invesco S&P SmallCap Low Volatility ETF 2.21%
CSB VictoryShares US Small Cap High Dividend Volatility Wtd ETF 2.48%
OSCV Opus Small Cap Value ETF 2.50%
XSMO Invesco S&P SmallCap Momentum ETF 2.65%

Analyzing the Weekly Flows

Total net flows for the channel this week were -$9,498 million, as massive outflows from large-cap blend and growth funds outweighed modest interest in value-oriented strategies. The U.S. Large Cap – Value category was the standout leader in gathering assets, bringing in $1,482 million and bringing its total AUM to $926.4 billion. U.S. Small Cap – Value also saw significant relative interest with $267 million in inflows. On the other end of the spectrum, U.S. Large Cap – Blend suffered the heaviest losses, shedding $4,658 million this week.

Category Flows Summary

Category Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
U.S. Large Cap – Value 195 $926.4B $1,482M $10,792M $30,753M $1,655M $73,502M
U.S. Small Cap – Value 36 $102.7B $267M $1,135M $1,330M $337M ($1,892M)
U.S. Small Cap – Growth 18 $53.1B $216M $476M $910M $183M ($1,170M)
U.S. Mid Cap – Growth 23 $60.5B ($1M) $802M $1,359M $21M $2,852M
U.S. Mid Cap – Value 23 $79.4B ($37M) $321M $1,531M $48M $2,100M
U.S. Mid Cap – Blend 68 $377.9B ($773M) $4,370M $8,603M ($109M) $25,857M
U.S. Small Cap – Blend 65 $337.0B ($1,826M) $2,506M $6,737M ($1,880M) ($2,839M)
U.S. Large Cap – Growth 158 $1,266.6B ($4,169M) $5,263M $33,581M ($3,702M) $116,411M
U.S. Large Cap – Blend 346 $4,084.2B ($4,658M) $59,349M $144,748M $3,115M $340,816M

Top & Bottom ETFs by 5-Day Flow

Weekly fund-level flows were highly concentrated in core indices. In Large Caps, the Vanguard S&P 500 ETF (VOO) led with $4,404 million in inflows, while iShares Core S&P 500 ETF (IVV) saw a massive outflow of -$10,078 million. Mid Caps saw Fidelity Enhanced Mid Cap ETF (FMDE) take in $93 million, while the Vanguard Mid-Cap ETF (VO) lost -$606 million. Small Caps were led by iShares S&P Small-Cap 600 Value ETF (IJS) with $284 million, whereas iShares Russell 2000 ETF (IWM) shed -$2,151 million.

Large Cap Flows

Ticker Fund Name 5-Day Flow
Inflows
VOO Vanguard S&P 500 ETF $4,404M
SPYM State Street SPDR Portfolio S&P 500 ETF $4,011M
CGDV Capital Group Dividend Value ETF $1,827M
VTI Vanguard Total Stock Market ETF $1,116M
RSP Invesco S&P 500 Equal Weight ETF $809M
Outflows
IVV iShares Core S&P 500 ETF ($10,078M)
SPY SPDR S&P 500 ETF Trust ($5,822M)
QQQ Invesco QQQ Trust Series I ($3,314M)
IWF iShares Russell 1000 Growth ETF ($2,059M)
IWD iShares Russell 1000 Value ETF ($1,276M)

Mid Cap Flows

Ticker Fund Name 5-Day Flow
Inflows
FMDE Fidelity Enhanced Mid Cap ETF $93M
VXF Vanguard Extended Market ETF $82M
VOE Vanguard Mid-Cap Value ETF $52M
CGMM Capital Group U.S. Small and Mid Cap ETF $45M
GRNJ Fundstrat Granny Shots US Small- & Mid-Cap ETF $44M
Outflows
VO Vanguard Mid-Cap ETF ($606M)
MDY SPDR S&P Midcap 400 ETF Trust ($342M)
IWR iShares Russell Midcap ETF ($142M)
IWS iShares Russell Mid-Cap Value ETF ($137M)
IWP iShares Russell Mid-Cap Growth ETF ($77M)

Small Cap Flows

Ticker Fund Name 5-Day Flow
Inflows
IJS iShares S&P Small-Cap 600 Value ETF $284M
AVUV Avantis U.S. Small Cap Value ETF $193M
SPSM State Street SPDR Portfolio S&P 600 Small Cap ETF $164M
IWO iShares Russell 2000 Growth ETF $152M
VTWO Vanguard Russell 2000 ETF $140M
Outflows
IWM iShares Russell 2000 ETF ($2,151M)
IWN iShares Russell 2000 Value ETF ($233M)
VB Vanguard Small-Cap ETF ($214M)
IJR iShares Core S&P Small Cap ETF ($49M)
CALF Pacer US Small Cap Cash Cows ETF ($41M)

Issuer League Table Update

Vanguard and iShares continue to dominate the U.S. Size & Style channel, combining for over 61% of total market share. Vanguard currently holds the top spot with a 34.17% market share ($2,490.2 billion AUM), followed by iShares at 27.51% ($2,005.1 billion AUM). Vanguard was also the weekly flow leader, gathering $4,941 million in net new assets, while iShares faced the largest headwinds with outflows totaling $15,166 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
Vanguard 41 $2,490.28B 34.17%
iShares 81 $2,005.12B 27.51%
SPDR 30 $1,053.63B 14.46%
Invesco 69 $689.22B 9.46%
Schwab 12 $316.37B 4.34%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $4,941M
Capital Group $2,404M
Avantis $370M
Outflows
iShares ($15,166M)
SPDR ($2,331M)
Invesco ($2,135M)

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Disclosures

This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.

This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.