Materials Momentum & Tech Retreat: This Week in Sector ETFs

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Weekly Channel Summary

The Sector & Industry ETF channel currently manages approximately $891 billion in total assets across 266 ETFs from 54 distinct issuers. This past week saw significant volatility in capital movement, with the channel experiencing total net outflows of ($5.69B). Despite the weekly pullback, the channel maintains a healthy positive momentum for the year, with Year-to-Date (YTD) inflows reaching $14.94B and 1-year flows totaling $13.57B. The landscape remains dominated by heavyweights in the Information Technology and Financials sectors, which together account for nearly half of the channel’s total AUM.

This Week’s Performance Leaders and Laggards

Performance across the sectors was largely positive this week, led by the Materials category, which posted a strong 2.31% return. Communication Services and Information Technology also showed resilience, gaining 1.64% and 1.52% respectively. Conversely, Consumer Staples was the primary laggard for the week, ending as the only category in the red with a -0.12% return. On a YTD basis, Information Technology remains the clear leader with a massive 29.22% return, while Consumer Staples continues to struggle, remaining down -0.21% for the year.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Materials 2.31% 6.23% 6.90% 13.91% 18.72% 17.07%
Comm Services 1.64% 2.94% 1.28% 12.46% 24.38% 21.59%
Information Technology 1.52% 3.57% 6.08% 19.34% 29.22% 24.66%
Industrial 1.21% 5.03% 3.96% 14.04% 27.60% 25.35%
Health Care 1.15% -0.51% 16.58% 22.87% 21.30% 19.12%
Utilities 1.15% -3.95% -0.85% 6.94% 17.01% 15.94%
Real Estate 1.12% -0.84% -0.45% 2.73% 5.16% 4.65%
Financials 0.94% 5.15% 4.37% 10.33% 17.79% 16.34%
Energy 0.74% -1.07% -1.27% 9.73% 5.53% 7.62%
Consumer Discretionary 0.32% 3.38% 1.09% 10.26% 8.65% 5.53%
Consumer Staples -0.12% -0.54% -0.33% -1.83% -0.21% -1.29%

Top & Bottom 5 ETFs by Weekly Performance

Individual fund performance was spearheaded by the DVXB (WEBs Materials XLB Defined Volatility ETF), which returned a solid 3.97% this week. On the other end of the spectrum, the QABA (First Trust NASDAQ ABA Community Bank Index Fund) and the FTXG (First Trust Nasdaq Food & Beverage ETF) were the week’s notable laggards, returning -1.29% and -0.88% respectively.

Ticker Fund Name WTD Performance
Top Performers
DVXB WEBs Materials XLB Defined Volatility ETF 3.97%
DVXF WEBs Financial XLF Defined Volatility ETF 3.39%
WDAF WisdomTree Asia Defense Fund 3.08%
CHPS Xtrackers Semiconductor Select Equity ETF 3.07%
DVRE WEBs Real Estate XLRE Defined Volatility ETF 3.01%
Bottom Performers
QABA First Trust NASDAQ ABA Community Bank Index Fund -1.29%
FTXG First Trust Nasdaq Food & Beverage ETF -0.88%
PBJ Invesco Food & Beverage ETF -0.73%
KBWR Invesco KBW Regional Banking ETF -0.68%
DVDN Kingsbarn Dividend Opportunity ETF -0.61%

Analyzing the Weekly Flows

The Sector & Industry channel recorded substantial total net outflows of ($5.69B) this week. Despite this, the Consumer Discretionary category saw the highest net inflows, attracting $327M, which brings its total AUM to $37.0B. Real Estate also experienced significant interest with $311M in new capital. Information Technology was the primary driver of the channel’s outflows, shedding a massive ($4.15B) in just five days.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Consumer Discretionary 15 $37.0B $327M $924M $4M ($1,584M) ($1,406M)
Real Estate 52 $82.6B $311M $2,245M $3,166M $4,125M $3,996M
Materials 10 $10.1B $150M $38M ($17M) ($759M) ($787M)
Consumer Staples 13 $26.2B $141M ($365M) ($1,050M) ($952M) ($1,046M)
Financials 33 $102.8B $83M $206M ($1,711M) ($188M) ($605M)
Energy 31 $44.2B ($1M) ($77M) ($239M) ($10,348M) ($10,435M)
Utilities 11 $37.6B ($68M) $695M $2,141M $6,752M $6,621M
Industrial 28 $68.4B ($83M) $1,799M $2,685M $6,689M $6,229M
Health Care 32 $98.1B ($592M) ($132M) $6,423M ($1,289M) ($1,483M)
Comm Services 7 $36.2B ($1,799M) $428M $470M $3,498M $3,456M
Information Technology 32 $347.6B ($4,152M) ($33M) $6,701M $8,995M $9,033M

Top & Bottom 5 ETFs by 5-Day Flow

The XLY (State Street Consumer Discretionary Select Sector SPDR) was the clear flow leader this week, pulling in $227M. Conversely, semiconductor-focused funds saw the heaviest selling, with the SMH (VanEck Semiconductor ETF) and XLC (State Street Communication Services Select Sector SPDR) witnessing outflows of ($2,495M) and ($1,783M) respectively.

Ticker Fund Name 5-Day Flow
Inflows
XLY State Street Consumer Discretionary Select Sector SPDR $227M
MISL First Trust Indxx Aerospace & Defense ETF $116M
XLP State Street Consumer Staples Select Sector SPDR $107M
ITA iShares U.S. Aerospace & Defense ETF $98M
VNQ Vanguard Real Estate ETF $90M
Outflows
SMH VanEck Semiconductor ETF ($2,495M)
XLC State Street Communication Services Select Sector SPDR ($1,783M)
XLV State Street Health Care Select Sector SPDR ($528M)
XLK State Street Technology Select Sector SPDR ($476M)
SOXX iShares Semiconductor ETF ($407M)

Issuer League Table Update

State Street (SPDR) and Vanguard continue to lead the Sector & Industry channel, commanding a combined 67.37% market share. Vanguard was the top issuer for the week in terms of net inflows, gathering $387M. Among the largest issuers, VanEck saw the most significant weekly pressure, recording ($2,517M) in net outflows.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
SPDR 30 $372.55B 41.81%
Vanguard 12 $227.80B 25.56%
iShares 49 $144.10B 16.17%
VanEck 11 $41.21B 4.62%
Fidelity 12 $34.05B 3.82%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $387M
First Trust $114M
Fidelity $53M
Outflows
VanEck ($2,517M)
SPDR ($2,371M)
Invesco ($854M)

For a deeper dive into these trends, access our FREE, in-depth ETF reports in the right side panel of this page.

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.