Flow & Tell with iShares | Q1 2025 ETF/ETP Flows

U.S. listed fixed income ETFs added over $100bn in Q1 — the category’s largest quarterly inflow on record. The momentum started early, with January and February flows more than doubling the previous record for the start of a year ($76bn vs. $34bn), and March adding to the trend. In total, Q1 2025 saw roughly 2.5x its quarterly average.³

• Short duration dominated: iShares 0-3 Month Treasury Bond ETF (SGOV) saw its largest quarterly inflow ever, pulling in $9.5bn.
• Active fixed income punched above its weight: Despite a much smaller AUM base, active FI captured nearly half of total fixed income flows.
• Bonds broke the trend: The Bloomberg U.S. Aggregate Bond Index returned +2.6% — its first positive quarter alongside a negative equity market since 2020.⁴

Europe

European equities have seen a strong resurgence this year, reversing years of underperformance, with Q1 marking the largest performance gap between European equities and the S&P 500 in a decade.⁵

Record ETF flows have gone into midcaps ($1.7bn), industrials ($1.2bn), and financials ($1.3bn). European sector flows year to day have now surpassed those of the U.S. A large fiscal stimulus announcement in Germany further boosted growth forecasts and asset performance, particularly for iShares MSCI Germany ETF (EWG), which saw over 50% of its current AUM come from Q1 inflows. The fund added more than $1bn in the quarter, nearly doubling its AUM.

U.S. sectors

While flows typically follow performance, the tech sector defied this trend, attracting $11bn in inflows despite its double-digit selloff. iShares Expanded Tech-Software Sector ETF (IGV) had its second-best quarter, adding $1.5bn, even though it finished the quarter lower year to date.

Gold

Gold was a clear winner in Q1. A mix of inflation concerns and mounting geopolitical tensions pushed prices to all-time highs, marking the metal’s biggest quarterly gain since 1986.⁶

• Flows followed performance: iShares Gold Trust (IAU) saw its largest quarterly inflow since 2020.
• February and March each pulled in over $1bn of inflows for Gold ETPs — a stark contrast to the 10-year average of just $120mn per month.
• Gold ETPs added $6bn in net flows in March alone.

The iShares Trusts are not investment companies registered under the Investment Company Act of 1940, and therefore are not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940. Investments in these products are speculative and involve a high degree of risk.

Bitcoin

Bitcoin, by contrast, lost momentum. The digital asset fell 12% on the quarter as volatility spiked to 68% in March.⁷

• ETP flows reversed: U.S. spot Bitcoin ETPs saw $5.5bn in outflows during February and March.
• Trading activity faded: Daily average volumes hit lows, dipping below $2bn.