Flight to Safety: Risk Assets Retreat While Dollar, Yen See Elevated Volumes

Macro Summary

Trading volume across the ETF universe was relatively muted, totaling $238.9B with activity levels reaching just 85% of the 30-day average. The day’s trading was characterized by a distinct “risk-off” tone and a flight to safety, evidenced by a massive surge in the Currency asset class (221% of average activity), largely driven by flows into the U.S. Dollar. While Equities and Digital Assets faced selling pressure, Fixed Income remained resilient with elevated activity (111% of average), particularly in short-duration government bonds, while Commodities managed to post positive returns on the day.

Asset Class Summary

Equity

Equity markets saw lighter than usual participation with $155.0B in total volume, representing 81% of the 30-day average. The session’s activity was driven by notable strength in the “Equity: Sector – Health Care” category (finishing the day down 1.71%), which saw elevated flows relative to recent trends. Additionally, the “Equity: Region – Latin America” category saw a spike in activity (212% of average), largely driven by heavy turnover in ILF (closing -0.51%). Significant idiosyncratic action was also observed in IYM, which traded 1637% of its normal volume.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Fixed Income

Fixed Income stood out as a hub of activity, with $32.9B in volume representing 111% of the 30-day average. This activity was heavily concentrated in the “Fixed Income: Taxable – Government Ultrashort” category (finishing the day down 0.17%), which saw trading volumes surge to 175% of normal levels. Emerging market debt also drew significant attention, with the “Fixed Income: Taxable – Emerging USD” category trading 172% of its average volume. At the ticker level, this trend was largely driven by heavy turnover in CLIP (closing -0.32%) and YEAR (closing -0.38%), both of which saw exceptionally high activity relative to their averages.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Commodities

Commodities traded $10.6B in volume, ending the day at 107% of the 30-day average. While activity ratios were highest in “Commodity: Specialty – Shipping Freight” (364% of average), the total volume was primarily driven by the “Commodity: Focused – Precious Metals” category (finishing the day up 0.39%). This volume was largely driven by heavy turnover in SIVR (closing +2.65%) and SLV (closing +2.66%), highlighting the demand for precious metals exposure in a risk-off environment.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Digital Asset

Digital Assets experienced a challenging session, trading $8.0B in volume, which is 102% of the 30-day average. The selling pressure was broad-based, with significant declines observed across the “Digital Asset: Cryptocurrency – Bitcoin” category (finishing the day down 5.02%). No specific tickers registered as high-activity outliers, indicating that the elevated volume was likely distributed across the major funds rather than concentrated in specific products.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Currency

Currency ETFs saw the highest relative activity of any asset class, with $163.5M in volume representing 221% of the 30-day average. This surge was almost entirely concentrated in the “Currency” category (finishing the day down 0.01%), largely driven by heavy turnover in UUP (closing -0.02%). The elevated volume in the U.S. Dollar funds underscores the flight-to-safety theme prevalent in the broader market.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Alternatives

Alternative ETFs were quiet, with $1.1B in volume, or 75% of the 30-day average. The majority of this volume occurred in Volatility products, though activity levels were generally subdued across the board. No specific category met the high-volume threshold for the day, and there were no significant ticker outliers to report.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Non-Traditional

Non-Traditional ETFs saw $31.0B in volume, coming in at 75% of the 30-day average. While overall activity was low, the “Non-Traditional: Leverage | Inverse – Commodity” category (finishing the day down 0.43%) saw elevated interest. This specific pocket of activity was largely driven by heavy turnover in AGQ (closing +4.42%), which traded over 300% of its average daily volume, aligning with the broader move in silver prices.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers

Multi-Asset

Multi-Asset funds traded $170.8M, sitting right at 99% of the 30-day average. The day’s action was uneventful for the asset class, with no categories meeting the high-volume criteria. Activity was largely driven by INCM (closing -0.37%), which saw slightly elevated turnover, but overall, the sector remained quiet.

High-Volume Categories (>$100M Traded)

High-Activity Ticker Outliers