Record ETF Inflows Signal Bullish Trend; Leveraged ETFs and Safe Havens Lead the Charge
April 15, 2025
In 2025, ETFs have experienced robust inflows, with approximately $100 billion per month and $44 billion already recorded in April, predominantly directed towards equities.
Cinthia Murphy noted surprising inflows into leveraged ETFs, suggesting this trend reflects a bullish sentiment among investors, akin to 'buying the dip on steroids.'
Among the leveraged ETFs, the ProShares UltraPro QQQ (TQQQ), Direxion Daily Semiconductor Bull 3x Shares (SOXL), and Direxion Daily TSLA Bull 2X Shares (TSLL) ranked among the top funds by inflows.
Murphy explained that the recent ETF flows indicate a shift towards safe havens, as investors are moving away from credit risk and duration risk.
In the fixed income segment, there has been a notable shift from bank loans and CLO ETFs to shorter-dated Treasury ETFs, driven by rising interest rates.
While some funds like the Janus Henderson AAA CLO ETF (JAAA) and Invesco Senior Loan ETF (BKLN) experienced outflows, others such as the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) benefited from inflows.
Despite high market volatility, the S&P 500 saw a nearly 6% increase last week, showcasing investor resilience in the face of challenges.
Murphy highlighted a long-term positive outlook for U.S. equities compared to international markets, even amid ongoing global economic challenges.
In a recent episode of ETF Prime, host Nate Geraci and investment strategist Cinthia Murphy discussed significant ETF flows against the backdrop of recent market volatility.
Investors are cautioned about the risks associated with leveraged ETFs, as their compounding effects can lead to significant losses during market downturns.
The SPDR S&P 500 ETF Trust (SPY), Vanguard S&P 500 ETF (VOO), and Invesco QQQ Trust Series (QQQ) emerged as the leading funds by inflows last week, reflecting a continued preference for U.S. large-cap equities.
VistaShares recently launched the VistaShares Target 15 Berkshire Select Income ETF (OMAH), aiming to generate income through an active options overlay while investing in Berkshire Hathaway's top public equity holdings.
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ETF Trends • Apr 15, 2025
ETF Prime: Murphy Highlights ETF Flows Amid Market Turmoil