The Big Picture: A Snapshot of ETF Market Activity
Over the five trading days ending Thursday, August 21st, the ETF market saw total net inflows of $18.2 billion. The flows were nearly evenly distributed between Equities, which gathered $8.9 billion, and Fixed Income, which attracted $9.1 billion. At a more granular level, the data shows a rotation out of asset classes like Digital Assets and Commodities, and into categories such as U.S. Large-Cap Growth stocks and core bond funds.
Asset Class Trends: A Week in Review
- Equities: The $8.9 billion inflow into equity ETFs followed a period of greater strength. For comparison, the asset class gathered $69.7 billion over the past month and a total of $171.2 billion over the past three months. This indicates that while investors continued to add capital to equities, the pace of those inflows moderated last week.
- Fixed Income: Fixed Income ETFs attracted $9.1 billion, showing consistent demand. This weekly figure is in line with the $103.2 billion gathered over the past three months and the $48.2 billion over the past month, highlighting ongoing interest in the asset class.
- Digital Assets: The $1.7 billion outflow from Digital Asset ETFs marked a reversal from recent trends. This move into negative territory follows the $20.7 billion of inflows seen over the past month and $3.9 billion over the past three months.
Category Highlights: Where the Money Moved
Equities: U.S. Large-Cap Growth Leads Inflows
U.S. equities gathered $8.9 billion in fresh capital. The U.S. Large-Cap Growth category led all categories, attracting $4.5 billion. In contrast, U.S. Small-Cap categories saw combined outflows of over $700 million. International markets also saw inflows, with Developed Markets (Ex-U.S.) pulling in $3.3 billion. The Eurozone was a notable exception, experiencing nearly half a billion dollars in outflows.
Fixed Income: A Focus on Core and Municipal Bonds
Fixed Income ETFs netted $9.1 billion.
- Core and Corporate Bonds: Core bond funds like the iShares Core U.S. Aggregate Bond ETF (AGG) and intermediate-term corporate bonds saw significant inflows.
- High-Yield Outflows: High-Yield bond ETFs were the largest losers within fixed income, with nearly $1.1 billion in outflows.
- Municipal Bond Strength: Municipal High Yield also saw notable inflows, pulling in $1.85 billion.
Commodities & Digital Assets
- Precious Metals: Gold and other precious metals-focused ETFs saw outflows of $779 million. The SPDR Gold Shares (GLD) alone shed over $900 million.
- Digital Assets: Digital Asset ETFs saw $1.7 billion in outflows. Both Bitcoin and Ethereum-focused funds experienced heavy redemptions.
Thematic Flows: Looking Past the Noise
Thematic ETFs saw notable movement last week. The Disruptive Tech category posted a $566 million outflow, largely driven by a rebalancing event in ARK ETFs that reversed inflows from the prior week. This technical activity masks the broader trend, as the category has still attracted $1.4 billion over the past month and $4.1 billion over the past three months.
Meanwhile, the Infrastructure theme continued its steady climb, pulling in another $423 million. This brings its one-month total to $1.35 billion and its three-month total to $3.6 billion, highlighting consistent interest in the space.
Dive Deeper with Our 19 ETF Channels
For those who want to go beyond the summary, our 19 dedicated ETF Channels offer a comprehensive look into every corner of the market. Each channel provides in-depth performance and flow analysis, links to related insights, and access to more specialized reports. Navigate to the channel sections on our site to explore the data that matters most to you.
A Note on ETF Flows: While ETF flows are a valuable indicator of market sentiment, it’s important to recognize they don’t always tell the whole story. Large flows can sometimes be driven by technical, non-sentimental factors. These may include institutional activity like using custom create/redeem baskets for tax management purposes, or ‘create-to-lend’ transactions where new shares are created to facilitate short selling. While we strive to add context where possible, these underlying mechanics can influence the data.
Data sourced from the ETF Action Weekly Flows Report dated 8/22/2025.
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.This report is for informational purposes only and is not intended as investment advice.