State Street ETFs See Broad Outflows Across Sectors While XLP Widens Lead Over XLY in 2026

Investors pulled significant capital from several State Street SPDR ETFs in the week ending September 22, 2026, with the flagship SPDR S&P 500 ETF Trust (SPY) recording the largest absolute outflow as 24,600,000 units were destroyed, a 2.3% decrease week over week. Other notable outflows hit the Health Care Select Sector SPDR ETF (XLV) at approximately $219.7 million (down 0.5%), the Biotech ETF (XBI) at $221.5 million (down 2.1%), the Utilities Select Sector SPDR ETF (XLU) at $182.9 million (down 0.9%), and the Industrial Select Sector SPDR ETF (XLI) at $178.4 million (down 0.6%).

Not all flows were negative: the Consumer Discretionary Select Sector SPDR ETF (XLY) attracted approximately $656.4 million in inflows despite the fund falling more than 7% year to date through September 21. That contrasts sharply with the Consumer Staples Select Sector SPDR ETF (XLP), which has gained 6.6% in 2026, widening the gap between the two funds to roughly 13 percentage points and reflecting a broader defensive rotation among investors.

Analysts initiated coverage of the SPDR S&P Transportation ETF (XTN) with a Hold rating, arguing it will underperform the iShares Core S&P 500 ETF (IVV) into 2027. Higher fuel prices and rising financing costs are seen eroding transportation sector fundamentals, and the fund's value tilt is not considered sufficient to offset weaknesses in earnings resilience, growth at a reasonable price, and quality relative to IVV and XLI.