Categories: Stocks / ETFs

Q1 ETF Flows Surge 50% as Investors Brace for a Noisy 2026


A look at ETF flows for the month of March suggests caution is back in vogue. Fixed income ETFs showed serious muscle in the asset gathering race last month, capturing nearly 45% of net creations. 

The end to Q1 also put an exclamation point on something we already knew: investors have come to rely on the ETF structure for navigating noisy markets. 

When it comes to asset class demand trends in March, it’s noteworthy that fixed income commanded so much attention. More importantly, ETF asset gathering leaders in the category included many ultra-short bond funds – the same tickers investors have turned to for cash-like safety. 

Most Popular Fixed Income ETFs in March

Ticker ETF Name March Flows ($MM)
SGOV iShares 0-3 Month Treasury Bond ETF 8,506
BIL State Street SPDR Bloomberg 1-3 Month T-Bill ETF 6,715
GOVT iShares U.S. Treasury Bond ETF 5,230
IQMM ProShares GENIUS Money Market ETF 3,576

 

In Equity, Gasp: VOO falters!

March flows brought a surprising change in equity category leadership. The Vanguard S&P 500 ETF (VOO), which had been on a multi-month asset gathering tear, was dethroned as asset gathering leader for the month thanks to $11 billion in net outflows.

Instead, it was the State Street SPDR Portfolio S&P 500 ETF (SPYM) that took the month’s crown, leading inflows with a $15 billion haul, pushing it to the No 1 position as most popular ETF of the month as well as of the quarter. 

Broadly speaking, investors remained committed to large cap equity exposure, possibly finding that well-established large names offer some stability and an implied quality focus in the face of ongoing market turbulence. 

Most Popular Equity ETFs in March

Ticker ETF Name March Flows ($MM)
SPYM State Street SPDR Portfolio S&P 500 ETF 15,839
IVV iShares Core S&P 500 ETF 8,319
VTI Vanguard Total Stock Market ETF 5,139
EFG iShares MSCI EAFE Growth ETF 4,786

 

Commodities ETFs Net Asset Losers in March

Within commodities, we saw an opportunistic shift in the demand for real assets. Investors trimmed recent gains and positions in metals, including gold, silver, platinum and palladium – many ETFs offering access to this segment faced outflows. 

The flip side was notable inflows into oil ETFs. Top commodities ETF gainers in the month included funds like SCO, USO and BNO. These three funds alone took in a combined $2.5 billion in net new assets. Oil and energy were center stage last month.  

Crypto ETFs Shows Signs of New Life

The crypto category continued to slowly regain momentum. Net inflows into several crypto ETFs from spot bitcoin to staked ethereum and income-generating crypto strategies like BTCI helped crypto ETFs end the quarter net positive in the asset gathering race. 

Flows Pacing Towards Another Record Year

March saw ETF asset flows moderate relative to the two prior months – a similar pattern to what we saw in 2025 – but Q1 2026 ended strong with net inflows totaling $463.5 billion. That result  amounts to a nearly 50% increase in creations year-on-year vs. Q1 2025. Talk about acceleration! 

If we assume asset flow seasonal trends hold true in 2026 – where Q1 is strong, Q2 sees moderation, Q3 brings summer lull, and Q4 delivers big numbers – we could be on track for another annual record exceeding $1.6-$1.7 trillion. The question is, could we break $2 trillion? 

As investors continue to digest a noisy market, navigate volatility in the face of an ongoing war, an uptick in inflation expectations and deteriorating consumer sentiment, and uncertainty surrounding the path of rates, it could be that the flexibility of the ETF wrapper continues to deliver nimble portfolio solutions to quickly evolving challenges. Time will tell. 

ETF Asset Flows in Q1

Year-to-Date, the Top 10 ETFs leading asset gathering are a mix of equity and fixed income classics: 

Ticker ETF Name YTD Flows ($MM)
SPYM State Street SPDR Portfolio S&P 500 ETF 26,045
VOO Vanguard S&P 500 ETF 22,204
IQMM ProShares GENIUS Money Market ETF 21,805
SGOV iShares 0-3 Month Treasury Bond ETF 14,778
VTI Vanguard Total Stock Market ETF 14,545
IEMG iShares Core MSCI Emerging Markets ETF 11,101
VXUS Vanguard Total International Stock ETF 10,784
RSP Invesco S&P 500 Equal Weight ETF 10,274
VEA Vanguard FTSE Developed Markets ETF 7,389
GOVT iShares U.S. Treasury Bond ETF 7,374

Source: VettaFi, FactSet data. 

For more news, information, and analysis, visit VettaFi | ETF Trends



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