$9.3B Surge into U.S. Equities Leads $11.7B Friday Flow Wave

Issuer League Tables

The issuer landscape on Friday was defined by a massive rotation into broad equity exposure, with Invesco securing the day’s absolute flow victory at $2,158M. This surge was primarily fueled by demand for its growth-oriented suites, while industry giants SPDR ($2,144M) and iShares ($2,001M) followed closely, maintaining their staggering trailing dominance with $87.92B and $372.36B in 1-year flows, respectively. Conversely, Direxion suffered the sharpest absolute retreat of -$139M as the market’s bullish tilt prompted a reduction in tactical leveraged and inverse positioning, contributing to its -$12.86B outflow over the past 12 months. On a relative basis, specialized boutiques like Bancreek and WarCap captured 16.44% and 8.89% of their total AUM in single-day inflows, highlighting a strong advisor appetite for high-conviction active management.

Absolute Flow Leaders & Laggards

Relative Flow Leaders & Laggards

Daily ETF Flow Analysis

ETF flows were incredibly strong on Friday, January 9th, with a total net inflow of $11,716M led by a significant rotation into the Equity asset class. Domestic equity demand remains the primary driver of market activity, with U.S. Large Cap Blend and Growth categories absorbing over $5.4B in fresh capital combined on the day. Fixed Income also saw steady interest, capturing $2,488M as investors extended duration into Intermediate-term strategies, while long-term Equity flows hit a massive $861,589M over the trailing 1-year period. Overall, the day’s activity reflects a high-conviction “risk-on” environment as investors aggressively pivot into core domestic equities while trimming exposure to volatile Digital Assets.

Asset Class Flows

Top & Bottom Category Flows

U.S. Size & Style

The U.S. Equity market was the epicenter of Friday’s action, led by a colossal $4,498M inflow into Large Cap Blend. Investors heavily favored core S&P 500 exposure, with SPY and IVV together attracting over $3.28B in fresh capital. Large Cap Growth also showed strength with $929M in additions, primarily through QQQ, while tactical small caps like IWM experienced outflows of -$142M as the focus remained squarely on high-conviction large cap themes.

Size & Style ex-U.S.

International equity flows were robust on Friday, totaling $747M in net creations, with a clear preference for broad developed markets and emerging large caps. CGGO led the charge with a significant $254M inflow, while core international holdings like DFAI added $124M to its $13.2B base. The Emerging Large Cap category also saw healthy participation with $145M in daily flows, indicating that global diversification remains a key secondary priority for investors amid the domestic index rally.

Sector & Industry

The industrial sector stood out as Friday’s primary leader, buoyed by a $601M influx that heavily favored aerospace and defense themes. ITA and XAR combined for over $286M in creations, signaling strong defensive industrial positioning as the year opens. Financials also saw renewed interest with $309M in adds, particularly in regional banks through KRE ($262M), while the Real Estate sector faced the day’s sharpest reversal with IYR shedding -$166M.

Region & Country

International regional flows were dominated by the Asia-Pacific region, which captured $585M in single-day inflows led by a resurgence in Japanese equity demand. WisdomTree’s currency-hedged Japan fund DXJ led all regional tickers with $161M in creations, as investors sought exposure to Japanese markets while neutralizing Yen volatility. Eurozone funds also performed well, adding $129M, while broader Emerging Markets saw interest concentrated in South Korea through EWY ($107M).

Thematic Equity

The thematic landscape on Friday was defined by a strong rotation into Disruptive Tech ($417M) and Industrial Revolution ($201M) strategies, as investors bet on high-growth technical innovation. Roundhill’s “Magnificent Seven” ETF MAGS led with $261M in fresh creations, while defense-oriented themes like SHLD ($94M) provided a more conservative technical exposure. Conversely, the Evolving Consumer theme suffered as XHB saw nearly $97M in outflows, reflecting a tactical retreat from homebuilders amid shifting rate sentiment.

Fixed Income

Fixed Income demand on Friday remained anchored in intermediate-duration and securitized products, with the broader asset class capturing $2,488M in total net inflows. Securitized products like MBB led individual ticker performance with $353M in adds, while senior bank loans via BKLN ($244M) highlighted a continued appetite for floating-rate yield. However, long-dated government debt faced a sell-off, with TLT bleeding over $253M as investors neutralized duration risk.

Commodity

Commodities experienced a $339M inflow on Friday, though the performance was sharply bifurcated between silver and gold products. SLV dominated the leaderboard with a massive $225M creation day, while the heavy-duty GLD trust suffered a -$367M liquidation. This suggests a tactical pivot toward silver’s industrial leverage or a move into lower-cost mini-share gold products like GLDM ($70M) during the broader market rally.

Cryptocurrency

Digital Asset ETFs faced significant profit-taking on Friday, with the broader asset class shedding -$511M as Bitcoin and Ethereum spot products cooled from recent rallies. IBIT and FBTC were the primary drivers of this retreat, facing outflows of -$193M and -$121M respectively. In a notable twist, investors appeared to favor futures-based exposure during the spot market volatility, with BITO adding $27M in net new capital.

Non-Traditional

The Non-Traditional segment saw $309M in net creations on Friday, driven primarily by demand for Synthetic Income strategies which captured $382M on the day. Funds like SPYI ($84M) and QQQI ($66M) were major beneficiaries as investors sought to extract yield from the equity rally. However, the Leverage sub-segment proved to be a drag as investors appeared to take profits on triple-leveraged long exposure, with TQQQ shedding -$108M despite the day’s positive broad index performance.

Recent Launches

The ETF market continues to demonstrate intense innovation in the target-outcome and specialty fixed income space, with 2026 starting at a prolific pace. LOGIQ’s Contrarian Opportunities ETF (LCO) has seen the most significant early traction, amassing over $52.09M in AUM since its debut. Global X’s suite of Zero Coupon Bond ETFs also saw clustered launches, catering to defined-maturity needs while Innovator continues to expand its “Dual Directional” buffer series to provide structured risk protection for equity portfolios.