Article

ETF Snapshot: Rate cuts and broken records

9 October 2025
Invesco
Overview of a roundabout

Key takeaways

Record breaking

1

European ETF flows set new records with US$46.8bn of NNA in September alone, taking AUM to over US$3 trillion.

Making cash work harder

2

Cash management ETFs continue to attract strong inflows, offering investors a way to earn better yields without taking on duration risk.

Diversifying away from US mega-cap tech

3

With portfolios often heavily tilted toward US mega-cap tech, investors are seeking opportunities beyond the US, including Small Cap, China, precious metals and Bitcoin.

Recapping flows in September 

Investors’ spirits were elevated in September, whether due to the Fed’s restarting of rate cuts or the kick-off of the annual Oktoberfest. Record inflows and strong market returns propelled EMEA ETFs past US$3 trillion of assets under management by the end of the month. The US$46.8 billion net inflows across products in the month smashed the previous record by US$11bn (February 2025).   

Equities led the charge

Equity ETFs dominated, capturing 78% of inflows. US exposure led for the second month running, with US$10 billion of NNA, driven by demand for large-cap beta. The Invesco S&P 500 UCITS ETF led the category with US$1.6bn of NNA. Global equity ETFs followed with US$6.1 billion, supported in part by retail investor activity and monthly savings plans. Emerging Markets also gained traction, attracting US$3.9 billion amid renewed interest in China’s technology companies and general increase in risk appetite.

Precious metals shine

ETF investors wanting to diversify portfolio risk continue to favour precious metals, with US$4.5bn of NNA primarily into gold and to a lesser extent silver products. Also seeing a pick-up in demand during the month were thematic ETFs focusing on mining companies saw increased demand as investors sought leveraged exposure to record-high metal prices.  

Fixed income flows stay positive

Fixed income ETFs saw US$4 billion net inflows, though flows were muted across most categories. High yield and cash management captured the most, while US corporate bond ETFs saw outflows. With the Fed restarting rate cuts and interest rates already relatively low in the UK and Europe, ultra-short duration ETFs are gaining appeal as attractive cash alternatives.

What to focus on this month

Markets remain shaped by falling rates, equity performance and ongoing de-dollarisation.  

  1. Making cash work harder
    Cash management ETFs have continued to see strong inflows. These instruments may be attractive to investors who wish to avoid taking duration risk but get a better yield than is currently achievable on cash.
  2. Diversifying US mega-cap tech
    Most investors are heavily exposed to US stocks and in particular US mega-cap tech. While this exposure has been profitable in recent years investors are starting to look elsewhere
  3. Silver beats gold
    Precious metals and crypto currencies have enjoyed a stellar year. Despite these record gains there is still a strong case for having an allocation to these non-fiat assets – both from a return generating, and diversifying perspective.
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