
Recent analysis of exchange-traded fund (ETF) flows reveals notable sector rotations within U.S. equities. As of February 7, 2025, sectors such as Investment Grade and Financials are experiencing the largest inflows, while Small Cap and Technology are seeing outflows. The largest absolute flows over the past week were observed in ETFs including $VOO with $2.8 billion in inflows, and $IWM, $TLT, $VGT, and $TQQQ, which saw outflows of $1.5 billion, $1.3 billion, $1.3 billion, and $1.2 billion, respectively. Additionally, U.S. leveraged ETF assets under management are nearing $110 billion, having tripled since 2022, indicating a surge in market speculation among investors. This elevated leverage is contributing to exaggerated market movements.
‼️Oh my LORD: US Leveraged ETF Assets Under Management are hovering around ~$110 BILLION, just shy of an all-time high. Leveraged assets have TRIPLED since 2022 as market speculation has skyrocketed among investors. An elevated amount of leverage exaggerates market moves. https://t.co/ejkaRN9lhS
The largest absolute flows over the past 7 days have been in the following ETFs: $VOO ($2.8B) $IWM (-$1.5B) $TLT (-$1.3B) $VGT (-$1.3B) $TQQQ (-$1.2B) https://t.co/0WP6cIWgo7
Looking at notional #ETF flows to monitor sector rotations within US Equities: currently the sectors experiencing the largest inflows compared to their averages include Investment Grade and Financials, while outflows are being seen in Small Cap and Technology. https://t.co/wNAvClA3eM





