ETF Flows: $62 Billion Into Equity Funds in April as AI and International Themes Lead

April ETF Flows: Where the Smart Money Is Moving

Exchange-traded funds attracted $62 billion in net inflows during April 2025, according to data compiled by Bloomberg. This brings year-to-date ETF inflows to $312 billion — on pace to exceed the all-time annual record set in 2021.

AI-Themed ETFs: The Hottest Category

Funds focused on artificial intelligence and technology infrastructure dominated the inflow league tables in April. The Global X Robotics & Artificial Intelligence ETF (BOTZ) added $2.1 billion, while the iShares Exponential Technologies ETF (XT) saw $1.8 billion in new money. First Trust's ROBT and IRBO also posted strong numbers.

The AI ETF category has collectively attracted over $18 billion year-to-date — more than the prior two years combined.

International Equity: The Contrarian Comeback

One of the most striking trends of 2025 has been renewed interest in international developed market equities. The Vanguard FTSE Developed Markets ETF (VEA) attracted $3.2 billion in April — its best month since 2017. The iShares MSCI EAFE ETF (EFA) added another $2.4 billion.

Investors are rotating toward international stocks on the thesis that the dollar's decline makes overseas earnings more valuable in dollar terms, European and Japanese equities are cheaper on a relative valuation basis, and non-US markets are less exposed to US tech concentration risk.

Outflows: Traditional Large-Cap Growth Under Pressure

The Invesco QQQ Trust (QQQ) — the benchmark Nasdaq 100 ETF — saw its first meaningful outflow month of the year at -$1.2 billion. Some of this reflects rotation rather than risk-off sentiment.

Fixed Income: Short Duration Still in Favor

In fixed income ETFs, investors continue to favor short-duration products. The iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Short-Term Bond ETF (BSV) collectively attracted $4.1 billion. Investors are reluctant to extend duration while the interest rate outlook remains uncertain.