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October ETF Asset Report

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Key Takeaways

  • DFAC, VOO and SPYM led October ETF inflows, attracting billions in assets.
  • Muni and bond ETFs gained favor amid market volatility and income-seeking demand.

U.S. stocks ended October last week on a weak note, with the Nasdaq Composite plunging 5.2% for the month, its worst monthly performance since March 2025. The S&P 500 declined 1.2%, while the Dow Jones Industrial Average gained 1.5%.

Technology and AI stocks bore the brunt of the sell-off as investors grew increasingly concerned about Big Tech's massive AI infrastructure spending, uncertain returns on these investments, elevated valuations and rising borrowing costs.

Disappointing earnings and outlooks from major technology companies, including Amazon, Alphabet and Intel, intensified the pressure toward month-end, triggering a broader reassessment of AI-driven stock valuations.

Against this backdrop, below we highlight a few winning exchange-traded fund (ETF) areas of October.

U.S. Equites Top

Dimensional US Core Equity 2 ETF (DFAC - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) and State Street SPDR Portfolio S&P 500 ETF (SPYM - Free Report) hauled in $49.3 billion, $29.4 billion and $9.3 billion in assets, respectively, over the past month (as of Oct. 30, 2026).

Muni Bonds Return to Favor

iShares National Muni Bond ETF (MUB - Free Report) has added about $7.0 billion in assets over the past month. The fund charges 5 bps in fees and yields 3.28% annually.  Vanguard Tax-Exempt Bond Index ETF (VTEB - Free Report) has gathered about $4.55 billion in assets.

Semiconductor Gathers Assets

Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL - Free Report) has attracted about $6.9 billion in assets over the past month. Investors probably bought the semiconductor dip, betting on a rebound despite the sector's sell-off. Note that SOXL suffered heavy losses (around 48%) over the past month as tech stocks were under severe pressure in October.

Total Stock Market Gains Steam

Vanguard Morningstar Total Stock Market ETF (VTI - Free Report) accumulated about $5.6 billion in assets (read: A Guide to Low-Cost ETFs).

Bond Marker Gains Too

Vanguard Total Bond Market ETF (BND - Free Report) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD - Free Report) amassed about $3.21 billion and $3.1 billion, respectively.  BND and LQD yield 4.11% and 4.84% annually, respectively.

Small-Caps Saw Outflows

iShares Russell 2000 ETF (IWM - Free Report) saw about $2.3 billion in assets flow out of the fund. Rising rate concerns and inflation fears weighed on investor sentiment toward small-cap stocks.


 

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