The Vanguard S&P 500 ETF (VOO) topped all equity ETF inflows with $4.7 billion for the week of Jan. 20, while the world’s largest ETF, the SPDR S&P 500 ETF Trust (SPY), landed at the underside with $7.3 billion in outflows, based on data from etf.com’s Pulse Tool.
The most recent weekly flows highlight an ongoing shift in investor preference between the 2 largest ETFs available in the market, with VOO holding nearly $618 billion in assets in comparison with SPY’s $635 billion, etf.com data show.
The drastic contrast in weekly activity shows how cost-conscious retail investors and financial advisors increasingly favor VOO’s 0.03% expense ratio over SPY’s 0.09% fee structure, pushing VOO to the brink of becoming the world’s largest ETF.
With about $17 billion separating the 2 funds’ assets under management, VOO’s consistent inflows versus SPY’s recent outflows suggest a historic shift in ETF market leadership is coming near.
Technology sector optimism, driven largely by artificial intelligence developments, fueled growth in tech-sector funds. The Invesco QQQ Trust (QQQ) attracted $1.2 billion in latest assets, while the VanEck Semiconductor ETF (SMH) attracted $1 billion for the week, based on etf.com figures. The SPDR Portfolio S&P 500 ETF (SPLG) gathered just over $1 billion.
Recent executive actions on domestic energy policy can have contributed to outflows within the energy sector, because the Energy Select Sector SPDR Fund (XLE) lost $639.84 million, etf.com data show.
Meanwhile, uncertainty around rates of interest and potential regulatory changes weighed on financial sector funds, with the SPDR S&P Regional Banking ETF (KRE) seeing $441.97 million in redemptions, based on etf.com figures.
The iShares MSCI EAFE ETF (EFAV) also saw $754.52 million in outflows, while the iShares Russell 2000 ETF (IWD) experienced $1.7 billion in redemptions for the week, etf.com data reveal.
The JPMorgan International Research Enhanced Equity ETF (JIRE) rounded out the week’s notable moves with $294.23 million in outflows, based on etf.com data.