ETF Inflows Near $1.5 Trillion as Record Year Shapes Up
Investors added nearly $92 billion to US-listed ETFs during the week ending September 18, pushing year-to-date inflows close to $1.47 trillion—just below last year’s record of $1.49 trillion. At this pace, a full-year total near $2 trillion appears possible. The surge was led by strong flows into US equity ETFs with over $61 billion in net inflows, followed by fixed income and international assets. The buying occurred amid the Federal Reserve’s first rate hike since 2023, which raised rates to a target range of 3.75%–4%, citing persistent inflation driven by an oil price spike due to tensions with Iran. Despite this, major indices like the S&P 500 remained flat for the week while Treasury yields hit multi-decade highs. Much of the inflow activity was attributed to mechanical factors such as quarterly rebalancing and tax-related trades rather than organic demand. Notable ETFs that saw large inflows included IVV, SPMO, and COWZ, whereas EWY, TLT, and XLE experienced significant outflows.
Topics: ETF inflows Federal Reserve rate hike Quarterly rebalancing Treasury yields