So far in 2025, retail investors have shown remarkable resilience—and aggressiveness—in their investment behavior. According to data from Goldman Sachs, individual investors have added roughly $122 billion to equity ETFs year-to-date.
Most notably, since mid-March 2025, there has been a sharp acceleration in inflows from individual investors. Trend is near-vertical increase, It Says that despite a broader market sell-off, retail participants are "buying the dip" in significant volume. This trend has resulted in a doubling of net inflows in just a few weeks.
In contrast, professional investors have steadily withdrawn capital. As of mid-May 2025, they have removed approximately $25 billion from equity ETFs. Their outflows appear consistent and prolonged, suggesting a cautious or even bearish stance toward current market conditions.
Corporate bond ETF flows,have remained flat to slightly positive, indicating minimal movement either way in that segment. This stability may suggest hesitancy or neutrality among investors when it comes to fixed-income assets.
Individual Investor ETF flows surged past $120 billion, with a dramatic increase around mid-to-late March 2025.
Professional Investor ETF flows dropped to approximately -$25 billion by May, showing steady institutional selling.
Corporate Bond ETF flows stayed near flat, reflecting limited activity in that category.
JP Morgan adds to this narrative, noting that since March 1st, retail investors have been net sellers of stocks in only six trading sessions. This persistence, even amid market declines, signals a strong conviction or perhaps speculative optimism among individual investors.
This growing disconnect between retail and institutional behavior is fueling debate about market direction. Is Main Street seeing long-term value while Wall Street is pricing in future risks?
Description:
This article explores the striking divergence in ETF flows between retail and institutional investors in 2025. While individual investors have poured a record $122 billion into equity ETFs—doubling their inflows since mid-March—professional investors have pulled out $25 billion.
