ETF flows hit new highs as investors widen the menu beyond US stocks

ETF flows hit new highs as investors widen the menu beyond US stocks
Global markets deliver strong returns, while EM and bond ETFs draw heightened attention.
DEC 03, 2025

US ETFs served up another hearty helping of fresh assets in November, underscoring that investors are broadening their allocations beyond traditional US equity exposures.

According to State Street Investment Management, US-listed ETFs gathered $140 billion during the month, boosting year-to-date inflows to $1.25 trillion and putting the industry on pace to exceed $1.4 trillion in 2025, a new annual record.

“Global stocks (+19%), bonds (+8%), and commodities (+16%), poised to have their best annual performance since 2019, are all outperforming cash (+3.9%) at the same time in 2025,” said Matthew Bartolini, global head of research strategists.

The synchronized performance has helped fuel interest outside the US but domestic equity ETFs still saw more than $70 billion in November, but international developed exposures drew more than $11 billion, maintaining a record-setting inflow streak, while emerging market ETFs added over $7 billion in their fourth-best month ever.

The broadening shift comes as nearly three-quarters of global equity markets have outpaced the US this year, the highest share since 2009.

Sector activity slowed, with only $2 billion in net inflows, but the tone was defensive. Healthcare ETFs brought in roughly $4 billion after strong earnings and a sharp price rebound, countering outflows in more economically sensitive areas such as financials and materials.

Bond ETFs attracted $42 billion in November and are now on track to surpass $400 billion for the first time in a single year. Short-term government ETFs picked up close to $10 billion as investors sought stability and liquidity, even with potential rate cuts on the near horizon. Inflation-linked bonds extended their streak of demand to an 11th straight month, while credit strategies collected another $5 billion.

Thematic ETFs logged more than $1.6 billion in inflows—reversing several years of weakness—but gains remained narrowly concentrated. Robotics, AI and smart-infrastructure funds accounted for the overwhelming majority of investor interest, while broader innovation themes continued to see money leave.

For more than a decade, portfolios heavily tilted toward US mega-cap growth have been rewarded. But with valuations more attractive overseas and macro uncertainty resurfacing at home, investors appear willing to diversify.

Bartolini cautioned that most US fund assets still sit in domestic equities, but November’s flows suggest investors are slowly rebuilding balance in their portfolios.

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