The ongoing rotation into value stocks has not abated as exchange traded fund investors continue to trim exposure from the growth style.

Looking at latest GTS Mischler Financial Group data for the week ended April 5, the Invesco QQQ Trust (NASDAQ: QQQ), which tracks the technology heavy Nasdaq-100, suffered $3.7 billion in net outflows, ARK Innovation ETF (NYSEArca: ARKK) saw $682 million in net outflows, and iShares MSCI EAFE Growth Index (NYSEArca: EFG) experienced $636 million in net outflows.

The growth style, notably technology names, have come under heavy fire after the sudden spike in 10-year Treasury note yields. The rising inflation outlook has weighed on growth stocks as these names are particularly sensitive to higher yields since their value is heavily dependent on earnings far into the future, which are discounted more heavily when yields rise.

Furthermore, these growth names had previously enjoyed a spectacular recovery since the pandemic began, as investors focused on companies that would benefit the most from the new stay-at-home work environment, which heavily favors technology, communication services, and internet names.

However, as investors look to a broad economic recovery fueled by fiscal stimulus measures, accommodative monetary policies, and wider Covid-19 vaccinations, the previously downtrodden value names have begun to pick up momentum.

For example, for the week ended April 5, the iShares MSCI EAFE Value ETF (BATS: EFV) brought in $547.9 million in net inflows, SPDR Industrial ETF (XLI) attracted $744 million in inflows, and Financial Select Sector SPDR (NYSEArca: XLF) saw $941 million in inflows on the broader reflation trade.

For more information on the ETF market, visit our ETF performance reports category.