Is Fund Flow Hype Real? 3 ETFs With Big Inflows in the Last Month
As with individual stocks, exchange-traded funds (ETFs) offer a host of different metrics for investors to evaluate their appeal as investments. Besides portfolio and strategy, investors will also consider factors including expense ratio, assets under management (AUM), trading volume, net asset value (NAV), and dividend metrics, among others.
Occasionally overlooked in this list of factors is fund flows, the amount of money investors either put into or remove from an ETF over a specified period of time. Less a reflection of the ETF itself than of market sentiment, fund flows can nevertheless be a valuable tool to identify increasingly (or decreasingly) popular funds.
We'll consider three funds with rapidly increasing inflows in the last month—why might investors suddenly be interested in these ETFs, and do they warrant further attention?
DYNF's Multi-Factor Active Approach Wins Investor Interest
First up is the iShares U.S. Equity Factor Rotation Active ETF (NYSEARCA: DYNF), which saw inflows more than quadruple to nearly $608 million in August compared to the month of July 2025. The fund uses a factor rotation model prioritizing quality, value, size, low volatility, and momentum in an effort to outperform the large- and mid-cap segments of the U.S. stock market.
DYNF has a complex strategy requiring active fund management, but the fund provider keeps expenses fairly low at just 0.27%. The fund leans toward information technology and financial names—together, they make up more than half of the portfolio—but also has representation from many other sectors. There are around 120 stocks in DYNF's portfolio.
Investors may see DYNF's multi-pronged, active approach as increasingly likely to be able to outperform the market given ongoing economic uncertainty heading into the second half of 2025. Indeed, DYNF has provided higher returns than the broader market year-to-date (YTD), increasing by almost 13% compared to 11% for the S&P 500.
Muni Bond Income Fund's Popularity May Indicate Shifting Sentiments About Economy
The Capital Group Municipal High-Income ETF (NYSEARCA: CGHM) saw about $1.9 billion in fund inflows for the month of August, up drastically from under $8 million in July. CGHM aims for tax-exempt income by investing in a portfolio of high-yield, lower-rated municipal bonds that are not commonly available to everyday investors.
Investors might take the sudden influx of cash into CGHM's coffers as a warning sign about the broader economy. ETF investors have flocked to a fund that shuns equities entirely in favor of a bond-based strategy. To be clear, CGHM remains a niche ETF—it currently has just under $2.1 billion in AUM, placing it on the smaller side of the fund universe. Another factor that might influence investors considering CGHM is its age — the fund has been active for less than a year since its launch in June 2024, and some investors are hesitant to consider ETFs that are under a year old.
CGHM is also an actively managed fund with a slightly higher expense ratio (0.34%) compared to DYNF. Given its focus on income rather than returns, it won't surprise investors that CGHM has returned -0.6% so far this year. In terms of dividend yield, though, it has provided an impressive 3.79%.
Brand New Fund Focused on International Free Cash Flow is Taking Off
Finally, the VictoryShares International Free Cash Flow Growth ETF (NASDAQ: GRIN), which noted more than $2 billion in fund inflows during August compared to just $121 million in all of July 2025. GRIN targets large-cap growth companies in international markets that the fund deems to have strong potential to build free cash flow over time.
Free cash flow, in this case, is a metric for a company's overall financial health and the likelihood of continued growth.
International ETFs have been popular as investors have recently turned away from the shaky U.S. market. GRIN seems a likely target for new investment on those grounds alone.
However, its niche focus on free cash flow and large, growing firms helps to distinguish it from many popular international funds that cast a much wider net.
GRIN only narrows its portfolio to just over 100 companies in developed markets, ensuring a strong basket of high-performing names.
Whether the strategy pays off remains to be seen—having only launched in late June of this year, GRIN is a very young fund. Its expense ratio of 0.56% is the highest on this list, but if international markets continue to excel, it may seem well worth the cost.
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