iShares Russell 1000 ETF Price & Performance (IWB)

Dividend-focused ETFs saw strong inflows, led by the Schwab US Dividend Equity ETF with $7.4 billion. Vanguard's High Dividend Yield ETF followed with $3.7 billion. This trend highlights investor preference for income-generating options amid uncertainty, even as broader equity markets experience fluctuations.1

The iShares Russell 2000 ETF continues to face significant outflows, losing $3.9 billion in February. This reflects investor concerns over small-cap performance, which has lagged behind large-cap stocks. Executive sentiment in small-cap companies has also turned pessimistic, further dampening investor confidence.23

Growth-focused ETFs have seen declining interest, with the iShares Russell 1000 Growth ETF experiencing outflows. Analysts suggest this shift stems from investor recency bias and a broader rotation into value stocks, as concerns over growth valuations and market volatility take center stage.45