iShares MSCI Emerging Markets Quality Factor ETF Price & Performance (EQLT)

Investor sentiment has shifted significantly as the CNN Fear & Greed Index hit "Extreme Fear" territory, its lowest in a year. Concurrently, the VIX surged nearly 20% in February, signaling market uncertainty. This fear-driven environment has led to increased interest in defensive ETFs to shield portfolios from potential downturns.12

Amid inflation and tariff concerns, U.S. fixed-income ETFs saw $2.28 billion in inflows, outpacing U.S. equity funds, which gained only $593.8 million. International equity ETFs also performed well, attracting $1.48 billion. These trends suggest investors are seeking safer assets as economic uncertainties grow.34

The tech-heavy Invesco QQQ Trust saw significant outflows of $1.8 billion, reflecting waning confidence in the sector. Defensive ETFs have gained traction as market uncertainties rise, with investors prioritizing stability amid inflation fears and geopolitical tensions.56