The four market cap-weighted S&P 500 Index-based ETFs gathered $22 billion in the first six months, despite U.S. large-cap equities falling into bear market territory and the S&P 500 Index ending June down 21%. While the SPDR S&P 500 ETF (SPY A) had $20 billion in net outflows, the Vanguard S&P 500 ETF (VOO A), the iShares Core S&P 500 ETF (IVV A), and the SPDR Portfolio S&P 500 ETF (SPLG) pulled in $26 billion, $14 billion, and $2.2 billion, respectively.  Advisors and end clients continue to use these lower-cost, diversified ETFs to gain equity exposure while pulling more than $100 billion from domestic equity mutual funds, according to Investment Company Institute data. It was not just a tough year for equity investing. The Bloomberg Aggregate Bond index tracked by the iShares Core U.S. Aggregate Bond ETF (AGG A+) was down 10% in the first half, which would have been the worst performance in its 45-year history had the year ended there. The Federal Reserve’s hiking of interest rates took a toll on many fixed income ETFs. Yet, rather than exit the ETF market and sit on the sidelines, fixed income-focused advisors and investors parked some cash in ultra-short bond ETFs, municipal bond funds, and elsewhere.   Ultra-short-term bond ETFs, which provide downside protection against the current rising interest rate environment, gathered $25 billion in the first half of the year, pushing their combined asset base to $95 billion. While index-based products like the iShares Short Treasury ETF (SHV A-), the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL B+), and the iShares 0-3 Month Treasury Bond ETF (SGOV) gathered the majority of the assets directed to these low-risk bond ETFs, active funds like the JPMorgan Ultra-Short-Term Bond ETF (JPST), the PGIM Ultra Short Bond ETF (PULS), and the Vanguard Ultra-Short Bond ETF (VUSB) experienced strong demand. National municipal bond ETFs were also popular in the first half of 2022, gathering $12 billion. The iShares National Muni Bond ETF (MUB A+) and the Vanguard Tax-Exempt Bond ETF (VTEB A-) received $6.0 billion and $3.9 billion, respectively. This sub-category manages just $83 billion in assets, but advisors have been turning more to this space than they have in the past for fixed income.