Investors Flee Mega-Cap Tech for Defensive ETFs

This week investors moved money out of concentrated U.S. technology into broader equity, fixed income and commodity ETFs. The Vanguard S&P 500 ETF (VOO) recorded $1.62 billion of inflows and the SPDR Gold Shares ETF (GLD) received $1.33 billion.

Broad-market equity funds drew significant cash. The Vanguard Total Stock Market ETF (VTI) added $935 million and the State Street SPDR Portfolio S&P 500 ETF (SPYM) took in $790 million. The Avantis U.S. Large Cap Value ETF (AVLV) recorded $636 million in inflows. The NEOS Nasdaq 100 High Income ETF (QQQI) gained $573 million; QQQI uses a call option overlay on the Nasdaq-100 Index to generate income.

Commodity funds saw inflows amid renewed geopolitical tensions. GLD, which holds physical gold, received $1.33 billion. The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), an actively managed futures-based fund that avoids issuing a K-1, added $693 million.

Short-duration fixed income attracted defensive cash. The Vanguard Short-Term Bond ETF (BSV), which holds investment-grade government and corporate bonds with maturities of one to five years and an average duration around 2.6 years, took in $769 million. The iShares 0-3 Month Treasury Bond ETF (SGOV), which holds Treasury bills with maturities under three months, added $694 million.

Investors also increased international exposure. The iShares Core MSCI EAFE ETF (IEFA), tracking developed international markets across market capitalizations and holding about 2,600 stocks, recorded $640 million in inflows.

Market participants cited a pullback in the semiconductor complex, uncertainty about the path of interest rates, and tensions in the Middle East as factors behind the reallocation.

These inflows represented the top ETF cash flows across equity, commodity and fixed-income products for the week.