Bond and International Equity ETFs Attract Capital as S&P 500 Products Face Heavy Outflows

New York, Jan. 22, 2026 – Exchange-traded fund investors directed fresh capital toward broad bond and international equity products on Thursday, while some of the largest S&P 500-linked vehicles experienced sizable withdrawals, according to early-morning flow data.

Broad Market Bond ETF Leads Fixed-Income Creations

The iShares Core U.S. Aggregate Bond ETF (AGG) gathered approximately $279 million, marking one of the strongest fixed-income inflows of the session. AGG’s asset base now stands at roughly $136.4 billion, an increase of about 0.20 percent from the previous day. The allocation reflects continued demand for diversified U.S. bond exposure at a time when investors weigh the path of interest rates and seek ballast against equity volatility.

Another notable fixed-income mover was the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), which pulled in nearly $341 million. The inflow lifted LQD’s assets under management (AUM) to $27.3 billion, up 1.25 percent. The data highlight renewed appetite for high-quality corporate debt after a period of subdued interest earlier this month.

International Equity Funds Draw Solid Interest

Outside the United States, the iShares Core MSCI Emerging Markets ETF (IEMG) captured $717 million, bringing its AUM to $131.2 billion, a 0.55 percent uptick. Meanwhile, the Vanguard FTSE All-World ex-US ETF (VEU) added $159 million. The two ETFs were part of a collective $2.35 billion that flowed into international equity funds, the only equity segment posting net creations for the day.

Analysts often view persistent inflows into emerging-market and ex-U.S. strategies as an indication that investors are looking to diversify geographic risk and position for potential currency tailwinds. Historical data from the Investment Company Institute show that cross-border allocations tend to rise when the dollar stabilizes and global growth expectations improve.

Broad U.S. Equity Index Funds See Significant Redemptions

On the redemption side, the SPDR S&P 500 ETF Trust (SPY) recorded the largest single-day outflow at $2.81 billion, reducing its asset base by roughly 0.40 percent to $699.3 billion. Two competing S&P 500 trackers, the iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO), lost $1.43 billion and $527 million, respectively.

Technology-oriented funds also faced pressure. The Invesco QQQ Trust (QQQ) shed about $669 million, and the Technology Select Sector SPDR Fund (XLK) gave up $248 million. The combined activity suggests profit-taking in growth stocks after a strong start to the year.

Sector-Focused Creations and Redemptions

Among sector ETFs, the Financial Select Sector SPDR Fund (XLF) gathered $226 million, pushing its AUM up 0.41 percent to $54.7 billion. The Health Care Select Sector SPDR Fund (XLV) received $163 million. In contrast, the SPDR S&P Regional Banking ETF (KRE) saw redemptions of $345 million, shrinking its AUM by 8.90 percent to $3.87 billion, the steepest percentage drop among the day’s largest movers.

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Small-Cap and Inflation-Protected Securities Also in Demand

The iShares Core S&P Small Cap ETF (IJR) took in $292 million, while the iShares Russell 2000 ETF (IWM) added $171 million. In fixed income, the iShares TIPS Bond ETF (TIP) saw inflows of $165 million, indicating a measure of inflation hedging even as headline price pressures moderate.

Asset Class Overview

Across all U.S.-listed ETFs, total net flows amounted to an outflow of roughly $2.71 billion, a modest 0.02 percent of the industry’s $13.75 trillion in assets. Key points include:

• U.S. equity ETFs: Outflows of $4.80 billion, or 0.06 percent of assets.
• International equity ETFs: Inflows of $2.35 billion, equal to 0.10 percent of assets.
• U.S. fixed-income ETFs: Inflows of $886 million, representing 0.05 percent of assets.
• Commodities ETFs: Outflows of $842 million, largely driven by redemptions from SPDR Gold Shares (GLD), which lost $611 million.
• Currency ETFs: Outflows of $773 million, the largest percentage decline at 0.53 percent.
• Alternatives, inverse, and leveraged products: Combined inflows of about $552 million.

Vanguard Total Stock Market ETF Tops Creations List

The session’s largest creation occurred in the Vanguard Total Stock Market ETF (VTI), which added $757 million. Although U.S. broad-market funds overall faced redemptions, the VTI inflow indicates selective buying among all-cap strategies. VTI’s asset base rose to $574 billion, up 0.13 percent.

Percentage Movements in Context

While dollar figures help identify headline flows, percentage changes offer context on how movements affect each fund. KRE’s 8.90 percent AUM decline underscores the magnitude of its outflow relative to size, whereas SPY’s larger dollar redemption translated into a smaller 0.40 percent dip because of its substantially bigger asset pool.

Data Methodology

Figures reflect creations and redemptions processed through 6 a.m. Eastern on Jan. 22 and may be revised as trade settlements finalize. ETF flows are tracked daily and can provide insight into investor sentiment, liquidity preferences, and tactical positioning.

Crédito da imagem: Getty Images