U.S.-listed ETFs just pulled in another $44.2 billion last week, pushing 2025 flows past $1.28 trillion and locking in a fresh annual record, per Bloomberg data, cited by Etf.com. But beneath the champagne moment, something odd flashed in last week’s numbers: investors couldn’t seem to agree on how they wanted to own the S&P 500.
On one side of the seesaw, SPDR S&P 500 ETF Trust (NYSE:SPY) inhaled a massive $18.1 billion, the biggest weekly inflow of any ETF on the market. On the other side, its supposedly steadier siblings, and those who have enjoyed the cheaper fund edge in recent weeks, the iShares Core S&P 500 ETF (NYSE:IVV) and Vanguard S&P 500 ETF (NYSE:VOO) bled $10.6 billion and $1.1 billion, respectively.
Same index. Same target exposure. Completely different audience behavior.
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The Liquidity Magnet Vs. The Long-Term Purists
SPY is still the world’s most liquid ETF, the “express lane on the S&P,” as hedge funds and fast-moving managers dart in and out. Those traders jumped in aggressively last week, likely riding momentum as the S&P 500 inched toward its October peak. But the fact that SPY remains negative YTD on flows, down $8 billion, underlines how erratic it has become as a short-term instrument.
Meanwhile, IVV and VOO, favorites of retirement accounts, fee-sensitive allocators, and long-term institutions, both saw rare, heavy redemptions. The most plausible culprit?
Tax planning and year-end repositioning-especially as investors harvest losses or rebalance after a powerhouse equity year.
The broader flow picture still looked rosy.
Equity ETFs took in $30.1 billion, riding the market’s upbeat mood. QQQ added $4.2 billion as the Nasdaq-100 flirted with its October highs. Value stocks quietly enjoyed a cameo: iShares Russell 1000 Value ETF (NYSE:IWD) pulled in $1.3 billion.
Even gold and silver managed to catch some sparkle, with SPDR Gold Trust (NYSE:GLD) and iShares Silver Trust (NYSE:SLV) seeing steady inflows as investors hedged against rate-cut timing jitters.
But the story of the week? Traders wanted speed, not savings.
The inflow-outflow split within the S&P 500 universe shows two investor tribes behaving very differently:
Long-term allocators trimmed their positions. Short-term traders piled in. The index stayed the same, but the behavior around it didn't. In a record year for ETF flows, it’s oddly fitting that the biggest week yet showed how the market’s most popular index can still produce its strangest contradictions.
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