The Fastest Growing and Shrinking ETFs of 2025 So Far

ETFs with the largest inflows

Investor appetite for low-cost beta remains strong, particularly in U.S. large-cap equities. The largest inflows in January went to the Vanguard S&P 500 ETF

.

This ETF took in a blistering $24.17 billion of net inflows. If this pace continues, VOO could potentially overtake the SPDR S&P 500 ETF Trust

to become the new king of ETFs.

Close behind VOO was its main competitor, the Invesco QQQ ETF

which tracks the Nasdaq-100 index. Despite a brief rout in tech stocks due to competition fears from China’s new DeepSeek AI model, QQQ took in a new $6.74 billion of inflows.

Despite not being explicitly labeled as a tech-focused ETF, QQQ has effectively turned into a large-cap growth fund due to the Nasdaq’s history of listing tech-heavy companies. Currently, the Nasdaq-100 index, which QQQ tracks, has over 50% of its holdings concentrated in the technology sector.

This inherent tilt toward growth stocks makes QQQ a go-to choice for investors seeking exposure to major tech players like Apple, Microsoft, and Nvidia.

Following QQQ in January’s inflows was its sibling fund, the Invesco NASDAQ 100 ETF

, which brought in $2.86 billion. QQQM offers identical exposure to the Nasdaq-100 but at a slightly lower expense ratio of 0.15% compared to QQQ’s 0.20%.

The trade-off? QQQ is more liquid with an options chain, making it better suited for institutional investors and active traders, while QQQM appeals to buy-and-hold retail investors seeking cost efficiency.

Similarly, for VOO, a close competitor racked up inflows as well. The SPDR Portfolio S&P 500 ETF

, which is now the cheapest S&P 500 ETF on the market with a rock-bottom expense ratio of 0.02%, saw $2.8 billion of net inflows in January.

Like QQQM, SPLG appeals to cost-conscious investors while still offering the same exposure to the S&P 500 at a slightly lower cost than VOO.

ETFs with the largest outflows

In a surprising turn, the SPY led January’s outflows with $4.74 billion in net redemptions. This might pave the way for VOO to dethrone SPY as the reigning king of ETFs.

Despite being the first U.S.-listed ETF and maintaining its legacy status, SPY’s 0.0945% expense ratio is becoming harder to justify, especially when compared to VOO’s 0.03%.

Additionally, more sophisticated investors are beginning to dislike SPY’s unit investment trust (UIT) structure. Unlike a traditional ETF, SPY’s UIT structure doesn’t allow dividend reinvestment between distributions, which creates a slight cash drag over time.

However, SPY does have one major advantage: its daily-expiry options, a feature that VOO currently lacks. In my opinion, if SPY wants to maintain its dominance, lowering its expense ratio is a must.

The second-largest outflows came from the iShares Russell 1000 Value ETF

, which saw $2.89 billion in redemptions. This points to a potential shift in style preferences, as investors increasingly tilt toward growth-oriented funds like QQQ rather than value-focused strategies.

With growth outperforming value during much of 2024 and early 2025, it’s no surprise that IWD has faced challenges retaining assets.

The third-largest outflows were sector-specific, with the Energy Select Sector SPDR Fund

seeing $1.72 billion in redemptions. This reflects uncertainty in the current macro environment, as President Trump’s volatile first week in office introduced new tariffs.

These developments have created significant headwinds for energy markets, leaving investors wary of the sector’s near-term outlook.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.