US energy sector ETFs have experienced $4 billion in outflows over a 65-day period ending in mid-August, marking the largest sustained withdrawal since mid-2025. In March 2026, these same funds had attracted a record $5 billion in monthly inflows, driven by geopolitical tensions and supply disruption fears. Through May 2026, cumulative year-to-date inflows had reached approximately $12 billion, already surpassing previous annual records. The two dominant funds in the sector, the Energy Select Sector SPDR Fund (XLE) with $33 billion in assets under management and the Vanguard Energy ETF (VDE) with $9.7 billion, continue to hold substantial assets despite daily outflows estimated at $61 million.
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