From Yahoo Finance: 2025-05-05 08:00:00

A slowdown in ETF adoption poses a threat to State Street Global Advisors’ $1.3 trillion full-year forecast as exchange-traded funds saw the lowest monthly inflows in a year at $62 billion in April. U.S. stocks suffered losses due to trade war volatility, impacting investor sentiment across multiple asset classes.

Gold ETFs attracted $3.8 billion while equity ETFs managed just $32 billion in April. Sector ETFs experienced their worst-ever monthly outflows at $11 billion, with only the utilities sector seeing inflows. Credit sectors faced pressure, with record outflows from investment-grade corporate bonds, high-yield bonds, and bank loan ETFs.

Investors poured $19 billion into ultra-short and short-term government bond ETFs in April, marking their second-largest monthly inflow ever. U.S.-focused ETFs collected $32 billion, accounting for 82% of all equity flows despite international markets outperforming. Small-cap ETFs saw record outflows, while low-volatility factor ETFs gained $850 million.

Market uncertainty may persist as economic norms recalibrate towards higher tariffs and confrontational trade negotiations. Bartolini cautioned that the pressure facing markets may not dissipate quickly, likening it to carbonic gases leaving an opened can of seltzer.



Read more at Yahoo Finance: State Street Report Shows Big Slump in April ETF Inflows