Wall Street posted solid gains in June, with the S&P 500 rising 4.4%, the Dow Jones up 3.66% and the Nasdaq climbing 6% over the past month (as of June 27, 2025). The tech boom mainly led to the rally.
The month was marked by geopolitical tensions, particularly between Israel and Iran, which pushed oil prices higher. However, a ceasefire later in the month helped calm markets. The United States Oil Fund USO jumped 9% over the past month (as of June 27, 2025), reflecting the surge in crude prices.
Mixed Data
U.S. inflation ticked up to 2.4% in May, while Q1 GDP contracted by 0.5% — the first decline in three years. Retail sales also fell for the second straight month, reflecting weak consumer demand amid trade uncertainty.
Trump’s Moves and Fed Tensions
Trump's trade deal with China lifted sentiment, but his clash with Fed Chair Powell over rate cuts added tension. Among corporate winners, Coinbase jumped 42% thanks to its stablecoin ambitions and crypto momentum, while NVIDIA rose 13% on strong earnings.
Against this backdrop, below we highlight the ETFs that fetched and lost sizable assets in the month of June.
S&P 500 & Nasdaq Top
iShares Core S&P 500 ETF IVV and Invesco QQQ QQQ hauled in $5.63 billion and $3.59 billion in assets, respectively. SPDR S&P 500 ETF Trust SPY witnessed inflows of $2.93 billion.
Bitcoin Gains Assets
iShares Bitcoin Trust IBIT attracted about $4.57 billion. Bitcoin has been an area to watch lately, given the rise in cryptocurrency prices. After suffering for several weeks amid tariff-related uncertainty, Bitcoin started gaining momentum in May. Although the price of Bitcoin was flat in June, the ETF IBIT continued to rake in assets.
Gold Wins As Well
SPDR Gold Shares ETF GLD amassed about $3.39 billion in assets in June as the safe-haven demand for the metal brightened amid Israel-Iran tensions.
U.S. Long-Term Treasury Loses Assets
iShares 20+ Year Treasury Bond ETF TLT lost about $3.1 billion in assets in June. The U.S. long-term bond market faced pressure in the early phase of 1H, along with equities. Fears of China's treasury selling, inflation risks amid trade war, chances of a less-dovish Fed, and basis trade unwind hit the bond market in early April.
Moody's has also downgraded the U.S. sovereign credit rating by one notch, citing concerns over the country’s ballooning $36-trillion debt burden. Moreover, equities surged in June, making treasuries even dull.
Small-Caps Under Pressure
iShares Russell 2000 ETF IWM lost about $3 billion in assets as sentiments are still not strong enough to support volatile and risky investing zones like small caps. The U.S. economy contracted at an annualized rate of 0.5% in Q1 2025, a sharper decline than the second estimate of a 0.2% drop and the first quarterly contraction in three years. Since small-cap stocks are closely linked to the domestic economy, small-cap ETFs like IWM have reasons to underperform.
Dow Jones Underperforms
The Dow Jones saw about $1.34 billion in assets gushing out of the fund. Within the three key U.S. indexes, the Dow Jones underperformed the other two. The Dow Jones is a bit value-centric than its other two peers — the Nasdaq and the S&P 500. Investors seemed to be more interested in high-growth ETFs.
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iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports Invesco QQQ (QQQ): ETF Research Reports SPDR Gold Shares (GLD): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports United States Oil ETF (USO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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