QQQ ETF Faces Worst Week Of Outflows Since November As Investors Sell The Tech Rally

Author: Piero Cingari | April 25, 2025 03:39pm

The world’s largest exchange-traded fund tracking the Nasdaq 100 index is on track for its worst week of outflows since November 2024, highlighting growing investor unease about the sustainability of the tech sector’s rebound from the tariff-led selloff.

The Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) lost $3.97 billion over the first four days of the week, according to TradingView data, with Friday's flows yet to be reported. This marks potentially the worst weekly outflows in six months.

Notably, this exodus occurs even as the Nasdaq 100 posted a robust weekly performance, soaring over 6%.

The VanEck Semiconductor ETF (NASDAQ:SMH) suffered outflows for $1.4 billion over the week, the worst since July 2024.

Similarly, the iShares Semiconductor ETF (NASDAQ:SOXX) recorded $347 million in outflows this week, heading toward its worst weekly outflow since December 2024. This drain comes even as chipmaker stocks surged 11% over the same period, the strongest weekly gains since November 2022.

Pressure is also being felt at the top of the tech elite: The Roundhill Magnificent Seven ETF (NYSE:MAGS) registered outflows for the second consecutive week.

Investors Are Rotating Out Of Tech Into Blue-Chip Stocks

Instead of an outright exit from risk assets, the flows suggest a sector rotation as investors appear to be moving from tech stocks into more traditional blue-chip names.

The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) recorded its largest single-day inflow since August 2020 on Monday, with $1.6 billion of fresh capital.

By the week’s end, ETF pulled in $1.53 billion overall, eyeing the strongest weekly inflow in nearly five years.

Sector Fund Flows: Winners and Losers

• The Communication Services Select Sector SPDR Fund (NYSE:XLC) gathered $124 million, poised for its third consecutive week of inflows.
• The Consumer Staples Select Sector SPDR Fund (NYSE:XLP) attracted $7 million in new capital, halting a two-week streak of outflows.
• The Energy Select Sector SPDR Fund (NYSE:XLE) extended its painful trend, losing $717 million, marking the sixth consecutive week of outflows.
• The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) saw an $84 million influx, posting its second straight week of gains.
• The Financial Select Sector SPDR Fund (NYSE:XLF) experienced significant outflows totaling $666 million.
• The Health Care Select Sector SPDR Fund (NYSE:XLV) registered $40 million in outflows.
• The Industrials Select Sector SPDR Fund (NYSE:XLI) attracted $140 million in fresh money.
• The Materials Select Sector SPDR Fund (NYSE:XLB) gained $52 million in inflows.
• The Real Estate Select Sector SPDR Fund (NYSE:XLRE) saw $62 million in inflows, reflecting growing interest in defensive sectors.
• The Technology Select Sector SPDR Fund (NYSE:XLK) managed to secure $105 million in inflows despite broader tech weakness.
• The Utilities Select Sector SPDR Fund (NYSE:XLU) posted $230 million in new investments, marking its second straight week of inflows, as investors seek safety in traditionally defensive sectors.

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Photo: Drozd Irina via Shutterstock

Posted In: DIA MAGS QQQ SMH SOXX XLB XLC XLE XLF XLI XLK XLP XLRE XLU XLV XLY XME