Key Points in This Article:
Money flows into ETFs surged to $5.9 billion last week, well over twice the 52-week average of $2.3 billion.
Institutional investors led with $3.7 billion, pushing the four-week average to $2.8 billion.
The four ETFs below are those with the greatest fund flows last week, according to ETF.com.
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Retail investors have been carrying the market, buying stocks even when the so-called “smart money” sends stocks tumbling.. Last week, though, institutional investors came roaring back, dumping money into U.S. ETFs and individual stocks at a rate greater than the 52-week average.
According to data from Bank of America, net buys from clients surged to an impressive $5.9 billion, more than double the 52-week average of $2.3 billion. This dramatic increase was driven by institutional investors who poured $3.7 billion into ETFs — the 10th-largest weekly amount in at least 17 years — reflecting a return of market confidence despite global uncertainties like tariff negotiations and Middle East tensions.
Retail investors remain committed to the market as well, with a buying streak in 33 of the last 35 weeks that added $400 million. Corporate buybacks, though, contributed $1.6 billion, while hedge funds added $200 million further amplifying the rally.
The four-week average of purchases has now climbed to $2.8 billion, signaling sustained momentum. This flood of capital has spotlighted the four ETFs below that have seen the greatest fund flows, according to ETF.com data.
Invesco QQQ Trust (QQQ)
Invesco QQQ Trust (NASDAQ:QQQ), which follows the Nasdaq-100 Index and is heavily weighted toward tech leaders like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Nvidia (NASDAQ:NVDA), is attracting significant inflows amid a tech-driven rally. Some $6.58 billion flowed into the ETF last week. The institutional buys, part of a year-to-date ETF flow exceeding $680 billion, reflect bets on AI, cloud computing, and innovation.
QQQ’s 0.20% expense ratio and decade-long annualized return of 18% enhance its appeal, especially as retail and institutional buying align. However, its 33.8x P/E ratio signals stretched valuations, making QQQ a buy only for aggressive investors willing to weather volatility, particularly if a dip offers a better entry point amid macroeconomic risks.
SPDR S&P 500 ETF Trust (SPY)
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY), tracking the S&P 500 Index with its 500 leading U.S. companies across diverse sectors, is a prime destination for institutional money. The recent buying spree, led by the $3.7 billion institutional influx, underscores confidence in the broader market’s upward trend, supported by solid mid-2025 economic data like 2.5% GDP growth and strong corporate earnings. SPY saw just under $3 billion in inflows.
SPY’s low expense ratio of 0.0945% and liquidity — averaging over $30 billion in daily trading volume — make it a staple for large investors seeking stability and growth. With the S&P 500 at 23x forward earnings and up 9.7% year-to-date, SPY is a strong buy for long-term investors, though potential overvaluation could prompt caution if market euphoria fades.
ARK Innovation ETF (ARKK)
The ARK Innovation ETF (NYSEARCA:ARKK), managed by investing guru Cathie Wood, targets disruptive innovation in AI, biotech, and electric vehicles, drawing investors seeking high-growth opportunities. Its portfolio, including Tesla (NASDAQ:TSLA), Roku (NASDAQ:ROKU), and Coinbase Global (NASDAQ:COIN), appeals to those embracing volatility for potential rewards, especially as the broader market’s bullishness extends to riskier assets.
Last week’s equity surge — ARKK saw $2.73 billion in money flows — supports the ETF’s momentum, with a 35.6% year-to-date gain, though its 0.75% expense ratio and holdings concentrated in tech introduce risk, as seen in its 67% drop during the 2022 bear market.
ARKK is a buy for risk-tolerant investors with a long-term outlook, but macroeconomic shifts could trigger a pullback, so close monitoring is required.
iShares Ethereum Trust ETF (ETHA)
The market has a new crypto love interest, Ethereum (CRYPTO:ETH), with the iShares Ethereum Trust ETF (NASDAQ:ETHA) seeing $2.33 billion in inflows as institutional interest in cryptocurrencies grows. Designed to reflect the crypto’s price performance, ETHA is up 31% year-to-date — and is 28% higher over the past month alone — fueled by Ethereum’s price rise in 2025 and potential regulatory clarity.
The equity buying surge, including alternative assets, has boosted ETHA, with investors viewing it as a hedge against inflation and a bet on blockchain’s future, despite its 0.25% expense ratio (lower than some crypto ETFs) and exposure to Ethereum’s volatility. ETHA is a buy for those bullish on crypto, but its sensitivity to regulatory changes and shifts in market sentiment warrants caution.
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