In the week ending August 27, 2025, the iShares Russell 2000 ETF ($IWM), representing small-cap stocks, experienced its largest weekly inflow since the 2024 U.S. Presidential Election in early November. Despite reported small-cap selling by Bank of America clients, inflows into small-cap ETFs, including $IWM and $IWO, were notably strong, supported by firms such as Goldman Sachs. Sector rotation trends within U.S. equities showed significant inflows into Technology and Small Cap sectors, while Consumer Staples and High Yield sectors saw outflows. Over the past seven days, notable ETF flows included $VGT (Technology) with $3.2 billion inflows, $VOO (S&P 500) with $2.3 billion inflows, and $IWM with $1.2 billion inflows, contrasted by outflows from $QQQ (-$4.8 billion) and $ARKK (-$1.1 billion). In July, investors reallocated sharply, withdrawing $270 billion from equity strategies, including a $212 billion retreat from S&P 500 mutual funds, though core equity ETFs still attracted nearly $19 billion in new assets.
Equity Sector Flows https://t.co/Jaraqznfd4
Markets saw sharp reallocations in July as investors pulled back from legacy equity funds. Equity strategies shed $270B, including a $212B retreat from S&P 500 mutual funds, while core equity ETFs still managed to attract nearly $19B in new assets. https://t.co/vIhujjEfxr
Big inflows into small caps! $IWM $IWO Goldman https://t.co/Lp1xSnOFVF