Latest daily ETF flow data revealed that investors poured a combined $6.38 billion into the SPDR S&P 500 ETF Trust (NYSE:SPY) and Vanguard S&P 500 ETF (NYSE:VOO) on Friday, while the Invesco QQQ Trust (NASDAQ:QQQ) recorded $250.58 million in redemptions.
SPY led all ETFs with $4.81 billion of inflows, lifting its AUM by 0.58%, while VOO attracted another $1.58 billion, according to data compiled by Etf.com. The flows suggest strong demand for broad U.S. large-cap exposure even as investors pulled money from the Nasdaq-100-focused QQQ.
The divergence wasn’t universal across Nasdaq exposure. Invesco NASDAQ 100 ETF (NASDAQ:QQQM), which tracks the same Nasdaq-100 index, attracted $383.21 million, highlighting a notable split between the two ETFs despite their similar underlying exposure.
Gold also featured among the day’s top creations, with SPDR Gold Shares (NYSE:GLD) attracting $613.72 million.
QUICK CONTEXT: Investors Favor Broad Market Exposure
Both SPY and VOO ETFs track the S&P 500, giving investors diversified exposure to large-cap U.S. companies rather than concentrating their bets on a particular sector or theme.
The more interesting wrinkle came from Nasdaq-100 exposure. QQQ recorded $250.58 million in redemptions, but QQQM attracted $383.21 million. Both ETFs provide exposure to the Nasdaq-100, so the opposing flows are notable even though the underlying index exposure is broadly similar. The lower expense ratio of QQQM (0.15%) against that of QQQ (1.18%) could have been a contributing factor.
The data also showed investors rotating within other equity categories. The Avantis U.S. Large Cap Value ETF (NYSE:AVLV), attracted $1.07 billion, while the Vanguard Value ETF (NYSE:VTV) lost $776.47 million. Broad-market demand was therefore not necessarily translating into uniform buying across every style or factor ETF.
Sector funds also faced pressure. The SPDR S&P Regional Banking ETF (NYSE:KRE) lost $303.93 million, while the Financial Select Sector SPDR Fund (NYSE:XLF) shed $270.12 million. The Health Care Select Sector SPDR Fund (NYSE:XLV) saw $254.65 million in redemptions.
Meanwhile, the Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT) gathered $765.44 million, adding further evidence that investors were diversifying their ETF positioning rather than making a simple all-in bet on equities.
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