Iran War, Inflation Fears Trigger $40 Billion Large-Cap Exodus — But VOO, QQQ Buck the Trend

U.S. investors may be pulling billions from equity funds as the Iran war pushes oil above $100 a barrel, but ETF flows are telling a more nuanced story.

U.S. equity funds recorded $32.27 billion in net outflows in the week through Sep. 9, the biggest weekly withdrawal since December 2025, according to LSEG Lipper data reported by Reuters . Large-cap funds bore the brunt of the selling, posting a record $40.44 billion in outflows as surging oil prices intensified inflation and interest-rate concerns.

Yet ETF investors were still putting substantial money into some of the market’s biggest large-cap vehicles. On Wednesday, the Vanguard S&P 500 ETF (NYSE: VOO ) attracted $2.99 billion...