The May Flash Flows report from State Street Global Advisors reveals that, with the worst-case tariff outcome off the table, global equities rallied by 4 per cent and, driven by fresh deficit concerns, US Treasury yields rose and bonds fell 1 per cent in May.
Against this backdrop, ETF asset flows bounced back from a weak April, attracting USD86 billion in new assets during the month, pushing 2025 figures to USD444 billion and keeping the industry on track for another USD1 trillion year, according to the attached US-listed ETF Flash Flows report from State Street Global Advisors.
Additional highlights from the report include:
US equity ETFs had USD25 billion of inflows — a geographic share capture below trend as investors looked overseas, with non-US equity ETFs taking in USD18 billion, led by USD9 billion into developed ex-US.
Bond ETFs attracted USD37 billion for the month – their third largest haul on record. It raises 2025 figures to over USD150 billion and sets bond ETFs on a path for a record-breaking year of more than USD360 billion of inflows — topping the record USD300 billion from 2024.
Growth exposures took in USD18 billion in May, their second-most flows ever, behind the USD22 billion post-election boost back in November.
On the sector level, Technology and Industrials led the pack, attracting USD1.6 billion and USD1.4 billion of new asset flows, respectively, while Financials (-USD1.2 billion) and Health Care (-USD887 million) led the laggards, the firm writes.
