Solutions For RealSolutions For Real
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

When It Comes To Medicare Cards, What’s In Your Wallet?

July 17, 2025

Here’s How Much Medicare Costs Could Increase in Just 10 Years (and How to Plan)

July 17, 2025

20 Part-Time Jobs With Excellent Pay and Flexibility

July 17, 2025
Facebook Twitter Instagram
Trending
  • When It Comes To Medicare Cards, What’s In Your Wallet?
  • Here’s How Much Medicare Costs Could Increase in Just 10 Years (and How to Plan)
  • 20 Part-Time Jobs With Excellent Pay and Flexibility
  • JPMorgan Worth More Than Citi, Bank of America, Wells Fargo
  • How An Economist Thinks About “Trump Accounts”
  • Judge’s Rule Reversal Means Medical Debt Could Impact Your Credit Report
  • What the New Tax Law Changes for Slot Machine Players
  • 9 Long-Held Traditions That Are Quietly Wrecking Family Finances
Thursday, July 17
Facebook Twitter Instagram
Solutions For RealSolutions For Real
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
Solutions For RealSolutions For Real
Home » ETF flows in July point to a more balanced stock-market rally as mid- and small-cap funds start to outperform first-half winners
Investing

ETF flows in July point to a more balanced stock-market rally as mid- and small-cap funds start to outperform first-half winners

News RoomBy News RoomAugust 6, 20230 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

Hello! This is MarketWatch reporter Isabel Wang bringing you this week’s ETF Wrap. In this week’s edition, we look at flows into U.S. exchange-traded funds in July which recorded their second-best month of 2023 as stock market’s rally gained steam and widened beyond the first-half winners. 

Please send tips, or feedback, to [email protected] or to [email protected]. You can also follow me on Twitter at @Isabelxwang and find Christine at @CIdzelis.

Sign up here for our weekly ETF Wrap.

U.S. exchange-traded funds had their second strongest month of inflows for the year in July as a once-concentrated stock-market rally continued to even out, while investors climbed down the market-cap ladder as mid- and small-cap funds started to lead the charge.

U.S.-listed ETFs notched another month of solid inflows, collecting a net $60.7 billion in July, after hauling in a net $70.2 billion in the previous month, according to FactSet data compiled by MarketWatch, which includes flows into funds in six major asset classes — equity, fixed income, commodities, asset allocations, alternatives and currency. 

July’s inflows were mainly powered by U.S. broad- and sector-equity funds, which helped stock ETFs attract around $44.9 billion of total net capital in July, according to FactSet data. 

Sector-equity ETFs started the year’s second act on the right foot after a brutal first half with nearly $19 billion of outflows as megacap technology stocks dominated the scene from January through May, according to data from Morningstar Research Services. 

However, sector-equity funds brought in $7.9 billion of capital in July, their best month of flows since October 2022, said Ryan Jackson, manager research analyst at Morningstar Research Services, in a Tuesday note. Financials-sector ETFs led the pack with $2.6 billion of net new money, while industrials and energy sectors attracted around $1.6 billion and $1.3 billion last month, respectively, according to Morningstar data. 

See: ‘Rare’ rally in cyclical stocks largely over, Goldman warns, after ETF investors favored such areas of the market

“Over the past two months we’ve seen a lot of small-cap strategies outperform their larger-cap, and mid-caps kind of getting on the act. So it’s not just these handful of ‘Magnificent Seven’ stocks that are really leading the charge. It’s become a much more democratic rally over the past couple of months,” Jackson told MarketWatch in a follow-up interview on Wednesday.

iShares Core S&P Small-Cap ETF
IJR
gained 5.5% in July, compared to a 3.2% advance for the iShares Core S&P 500 ETF
IVV
during the same period. “Strong economic growth likely benefited IJR more acutely than IVV, as small-cap stocks tend to be more sensitive than their more-established brethren,” Jackson said. 

See: The ‘narrow breadth’ chorus has fallen silent. What broadening participation in stock-market rally means for investors.

He also pointed out “some divergence among the category’s heaviest hitters,” referring to the spread in flows between two large-cap funds tracking the benchmark S&P 500 index, the IVV and the SPDR S&P 500 ETF Trust
SPY.
The SPY is the very first exchange-traded fund listed in the United States and the largest fund with over $430 billion under management.

The FactSet data shows that while the IVV led all the U.S.-listed funds by collecting over $11 billion in July, the SPY saw nearly $4 billion of outflows over the same period. The SPY was up 3.3% in July. 

However, Jackson said the flows of SPY are “notoriously erratic” and sometimes a “go-to shorthand” for traders that just want to have a quick equity exposure. “It’s not necessarily a fund that is so much favored by the long-term investment crowd planning on buying and holding… I haven’t noticed a really clear pattern with what that necessarily says about the market or about investors’ attitude towards the market.” 

It’s also worth noting that fixed-income ETFs, which ruled the first half with an over $101 billion of inflows, still recorded its third-largest monthly inflows of $17.4 billion in July on the heels of their $27.8 billion breakout in March and $23.9 billion of inflows in January, according to FactSet data. 

Jackson and his team saw in July that while ETF investors started to feel more comfortable taking risks and struggled to warm up to some of the riskier asset classes, they are not ready to “completely abandon” fixed-income strategies that they favored when things were uncertain. 

“What we’re seeing now is a regime of people who are a little bit more comfortable with risk, but there are valid alternatives to actually generate sound return,” Jackson said via phone. “Certainly government strategies have continued to be the story — you’re buying something that’s nearly risk free at a more competitive rate than you’ve been able to for a long time.” 

As usual, here’s your look at the top- and bottom-performing ETFs over the past week through Wednesday, according to FactSet data.

The good…

Top Performers

%Performance

Sprott Uranium Miners ETF
URNM
3.3

Invesco DWA SmallCap Momentum ETF
DWAS
2.4

Global X Uranium ETF
URA
2.2

Invesco China Technology ETF
CQQQ
2.0

VanEck Oil Services ETF
OIH
2.0

Source: FactSet data through Wednesday, August 2. Start date July 27. Excludes ETNs and leveraged products. Includes NYSE, Nasdaq and Cboe traded ETFs of $500 million or greater.

…and the bad

Bottom Performers

%Peformance

Invesco Solar ETF
TAN
-7.0

KraneShares Global Carbon Strategy ETF
KRBN
-6.2

iShares Global Clean Energy ETF
ICLN
-5.1

United States Natural Gas Fund L.P.
UNG
-4.7

Global X Robotics & Artificial Intelligence ETF
BOTZ
-4.3

Source: FactSet data

New ETFs

  • J.P. Morgan Asset Management Monday announced the firm has completed the conversion of four mutual funds to ETFs, JPMorgan Equity Focus ETF
    JPEF,
    JPMorgan Limited Duration Bond ETF
    JPLD,
    JPMorgan High Yield Municipal ETF
    JMHI
    and JPMorgan Sustainable Municipal Income ETF
    JMSI.
    The funds could provide investors with active investment options in markets traditionally available to ETF investors through mostly passive solutions, said the company in a statement on Monday.

Weekly ETF reads



Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

Your Brand Isn’t Broken — Your PR Strategy Is. Here’s What to Do Instead

Investing July 16, 2025

13 Behaviors People Find Condescending

Investing July 15, 2025

Manage Clients, Projects, and Sales Without Leaving Your Dashboard

Investing July 13, 2025

How Mastering Your Nervous System Boosts Leadership Presence and Performance

Investing July 12, 2025

This Former NFL Player Built a Brand Around Nasal Breathing

Investing July 11, 2025

Jack Dorsey Announces Bitchat Messaging App

Investing July 8, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

Here’s How Much Medicare Costs Could Increase in Just 10 Years (and How to Plan)

July 17, 20250 Views

20 Part-Time Jobs With Excellent Pay and Flexibility

July 17, 20250 Views

JPMorgan Worth More Than Citi, Bank of America, Wells Fargo

July 17, 20250 Views

How An Economist Thinks About “Trump Accounts”

July 16, 20250 Views
Don't Miss

Judge’s Rule Reversal Means Medical Debt Could Impact Your Credit Report

By News RoomJuly 16, 2025

Drazen Zigic / Shutterstock.comAdvertising Disclosure: When you buy something by clicking links within this article,…

What the New Tax Law Changes for Slot Machine Players

July 16, 2025

9 Long-Held Traditions That Are Quietly Wrecking Family Finances

July 16, 2025

Why Skipping This One PR Move Could Stall Your Startup’s Growth Before It Even Begins Doing PR is critical for startups, yet many entrepreneurs are so busy developing their product that they forget to make a media plan.

July 16, 2025
About Us
About Us

Your number 1 source for the latest finance, making money, saving money and budgeting. follow us now to get the news that matters to you.

We're accepting new partnerships right now.

Email Us: [email protected]

Our Picks

When It Comes To Medicare Cards, What’s In Your Wallet?

July 17, 2025

Here’s How Much Medicare Costs Could Increase in Just 10 Years (and How to Plan)

July 17, 2025

20 Part-Time Jobs With Excellent Pay and Flexibility

July 17, 2025
Most Popular

Allstate Takes New Approach to Return-to-Office: Coworking

November 19, 20243 Views

10 Places to Find Lost Money at Home

October 5, 20241 Views

Memorable Stories, Feuds, and Rumors That Made Ed Sullivan …

August 5, 20231 Views
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 Solutions For Real. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.