From Nasdaq
May 23, 2025 10:45 am:

Geopolitical uncertainty has been dominating the markets, affecting ETF activity. In April, U.S. ETFs collected $36 billion, the lowest monthly total since August 2023. Fixed income ETFs, especially short-term US Treasury ETFs, gained more interest due to heightened risk-off sentiment.

Investors are increasingly seeking specific market solutions like protection, income, and thematic strategies through ETFs. Buffered and target income ETF strategies saw strong flows in April despite overall tapering. ETFs are seen as essential building blocks for managing risk and generating returns in uncertain market conditions.

During uncertain times, investors can use buffer ETFs to cushion downside in equity markets and target income ETFs for steady cash flow. Missing part of the market recovery can significantly impact long-term returns, making these strategies valuable tools for remaining invested during extreme volatility.

Market focus is shifting towards the impact of the administration’s economic policies on hard economic data. Q1 U.S. GDP contracted by 0.3%, marking the worst print in three years. Attention is now on upcoming indicators like nonfarm payrolls, CPI, and corporate earnings, which will shape market expectations and potentially influence Federal Reserve decision-making.

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