AI Tools + ETF Weekly: Gemini 3.8, agent harnesses, and a split ETF tape

AI tools

• Gemini 3.8 Flash: Google released Gemini 3.8 Flash on September 2 for long-horizon software engineering, autonomous agents, and complex multi-step reasoning. Google lists an introductory API price of $0.75 per million input tokens and $3.75 per million output tokens; the introductory price is scheduled to expire on December 31, 2026. Google also introduced Gemini 3.8 Flash Cyber for trusted defenders through its Fairwind Program. 1
• Copilot Studio’s GitHub Copilot harness: Microsoft says the generally available harness coordinates model calls, context, tools, MCP servers, connected agents, skills, memory, workflows, and files for reasoning-heavy business processes. The practical evaluation point is where the agent can act, where it must stop, and which data it can carry forward. 2

ETF market

• Flows were negative overall on September 4: ETF Action reported $1.77 billion in net outflows. Equity products lost $5.87 billion, while fixed income gained $2.17 billion and multi-asset products gained $2.52 billion. IVV lost $9.72 billion that day, while SPY gained $726.7 million. 3
• Semiconductor flows remained positive: SMH gained $357.9 million and SOXX gained $300.9 million on September 4. IYW lost $111.8 million and IGV lost $62.1 million. ETF Action cautions that daily outliers can reflect specialized portfolio rebalancing, so one day of creations or redemptions is not a forecast. 3
• Recent performance diverged from year-to-date leadership: ETF.com reported that software ETFs outperformed semiconductor ETFs during August, while semiconductor funds remained far ahead year to date. The article compares IGV, SKYY, and WCLD with SMH and SOXX, whose concentration and weighting structures differ. 4
• New listing: Deutsche Börse listed the Seraphim New Space UCITS ETF on September 2. The fund focuses on listed commercial NewSpace companies, is accumulating, and lists a 0.75% annual product cost. The notice also lists active Japan and Europe equity ETFs from Schroders at 0.25%. 5