Market dynamics took an exciting turn when State Street’s active funds approached the remarkable milestone of reaching $1 trillion in ETF assets. The iShares Core S&P 500 ETF (IVV) shone brightly by attracting a substantial $10.1 billion, pushing its total assets under management to an impressive $560 billion. This influx of funds occurred against the backdrop of a 0.2% slip in the S&P 500 on a Thursday as the resurgence on Wall Street waned following the Federal Reserve’s prediction of two forthcoming interest rate cuts in 2025. Dividend-focused ETFs emerged as winners with robust demand, with the Schwab US Dividend Equity ETF (SCHD) reeling in $7.4 billion and the Vanguard High Dividend Yield Index ETF (VYM) accumulating $3.7 billion. The First Trust Rising Dividend Achievers ETF (RDVY) followed suit by attracting $3 billion and witnessing an 18.5% boost in its total assets.
However, not all funds experienced gains, with the Vanguard Growth ETF (VUG) witnessing the highest redemptions at $1.8 billion. It was closely followed by the Vanguard S&P 500 ETF (VOO) and the Vanguard Dividend Appreciation ETF (VIG) with outflows of $1.2 billion each. U.S. equity ETFs established their dominance by accumulating $33.6 billion in inflows, while international equity funds secured $1.2 billion. Overall, ETFs experienced total net flows of $36.2 billion, a minute 0.3% addition to the industry’s assets under management which stand at a colossal $10.6 trillion.
Top Inflows:
- iShares Core S&P 500 ETF (IVV): $10,106.47 million net flows, 1.80% AUM change
- Schwab US Dividend Equity ETF (SCHD): $7,425.45 million net flows, 9.56% AUM change
- Vanguard High Dividend Yield Index ETF (VYM): $3,650.50 million net flows, 5.75% AUM change
Largest Outflows:
- Vanguard Growth ETF (VUG): -$1,772.00 million net flows, -1.19% AUM change
- Vanguard S&P 500 ETF (VOO): -$1,240.85 million net flows, -0.20% AUM change
- Vanguard Dividend Appreciation ETF (VIG): -$1,194.06 million net flows, -1.33% AUM change
When observing the net flows distribution across various sectors, it’s interesting to note that U.S. equity dominated with a staggering $33.6 billion influx, while international equity enjoyed a boost of $1.2 billion. The overall breakdown reveals the resilience and growth of the ETF industry, accounting for $36.2 billion in total net flows, incrementing the industry’s assets under management by 0.3% to $10.6 trillion.
The aggregate data, updated as of 6 a.m. ET, sheds light on the ETF trends that shape the market landscape. While considered accurate, these numbers are susceptible to amendments and updates by the exchanges. The ETF realm remains dynamic and continues to captivate investors with its evolving dynamics and exceptional growth.
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