Investors Pour $56B Into ETFs as Gold and Bitcoin Roar Back

Investors deposited more than $56 billion into US-listed exchange-traded funds (ETFs) during the week ending August 21, propelling year-to-date inflows past $1.3 trillion. US equity ETFs accounted for approximately half of the total, with $25 billion in inflows. US fixed income saw $12.5 billion in investments, while international equity funds collected $5.6 billion and international fixed income funds accrued $2.5 billion.

Commodity ETFs stood out, absorbing almost $5 billion, whereas currency funds and alternatives funds each saw $2.2 billion and $2.8 billion in inflows, respectively.

The S&P 500 slipped slightly over 1% last week, retreating from the record highs it had achieved the week prior. Despite the Treasury Department's efforts to support the market by doubling its long-dated debt buybacks, bond yields experienced brief relief but swiftly rebounded, leaving the 30-year Treasury yield near its 19-year high above 5.3%, which was reached on August 17.

In response to the market's upward trajectory, investors flocked to certain assets. SPDR Gold Shares (GLD) attracted $3.4 billion, while the iShares Bitcoin Trust (IBIT) garnered over $1 billion. Both gold and bitcoin experienced significant gains, with gold climbing around 8% year-to-date after spending much of the summer in the red. IBIT, however, remains down about 10% in 2026, a marked improvement from the 33% loss it incurred at its lowest point in June.

On the other hand, the VanEck Semiconductor ETF (SMH) led outflows, dropping $1.7 billion. Semiconductor stocks have been relatively stagnant lately, fluctuating after beginning the third quarter under pressure. Although the broader AI sector remains intact, it has become increasingly volatile as investors debate whether the rally is sustainable and if the sector has already peaked.