ETF Inflows Top $73B So Far This Year

By
June 30, 2014
Share:

Investment capital flows into exchange-traded funds fall off pace from 2013's record.

To see ETF.com's story on June 2014 ETF flows, please click here.

Investors poured more than $73 billion into U.S.-listed ETFs in the first half of this year, roughly two-thirds of it into equities, amid renewed optimism that the U.S. economic recovery remains on a steady, if slow, trajectory of improvement more than five years after the collapse of Lehman Brothers.

A slew of funds from low-cost provider Vanguard, the No. 3 ETF provider by assets, dominated the list of the most popular ETFs in the first half­—a fitting cluster, given that the Malvern, Pa.-based firm hauled in more assets than any other ETF sponsor. But Schwab also got traction with its lineup of low-cost ETFs, and First Trust continued to gain momentum with its active ETFs and quasi-active "AlphaDex" ETFs.

Total U.S.-listed ETF assets are now at $1.860 trillion—almost 7 percent higher than at the end of last year and more than 26 percent higher than at the end of 2013's first half. The asset growth reflects a nearly 6 percent increase in the S&P 500 Index.

ETF asset gathering is nowhere near the pace necessary to match the one-year inflows record of $188.54 billion set last year, according to data compiled by ETF.com. The asset growth reflects a nearly 6 percent increase in the S&P 500 Index.

That said, last year's first-half asset haul was also about $73 billion, meaning that, in order to reach the record, inflows had to accelerate significantly in the second half of the year—and did. That could happen again. Some analysts have said it is likely to happen, and, in fact, seems to already happening. In June inflows into ETFs topped $25 billion, according to monthly data we compile.

While a risk-on sensibility favoring equities gained momentum once the winter-related swoon ran its course, about 31 percent of all the first-half inflows—or almost $23 billion—were into fixed-income strategies.

That's because the U.S. recovery remains stubbornly choppy; Japan appears committed to weakening the yen by keeping bond yields low; and, not least, the European Central Bank is concerned that strong disinflationary pressures in the eurozone could turn into deflation.

Asset Class Data

2014 1st-Half Flows By Asset Class Net Flows ($, M) AUM ($, M) % of AUM
U.S. Equity 22,973.93 1,012,709.33 2.27%
International Equity 24,819.51 448,450.35 5.53%
U.S. Fixed Income 19,930.28 254,950.14 7.82%
International Fixed Income 2,975.77 24,705.70 12.04%
Commodities -813.93 67,394.46 -1.21%
Currency -875.72 1,730.68 -50.60%
Leveraged -974.59 22,243.27 -4.38%
Inverse 4,487.09 20,384.97 22.01%
Asset Allocation 771.54 4,885.35 15.79%
Alternatives 222.06 2,894.29 7.67%
Total: 73,515.94 1,860,348.52 3.95%

 

ETF.COM CHANNELS

Trying to figure out alternatives ETFs? Use our alternatives ETFs channel, library and ETF screener!

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

The broad-market 'SPY' and energy ETF 'XLE' were the biggest winners in terms of inflows on Thursday, Aug. 27.

The top three ETF issuers all saw net inflows into their products as the market surged on Thursday, Aug. 27.

ETF.COM ANALYST BLOGS

By Dave Nadig

With many ETFs currently trading well off fair value, what’s an ETF investor to do? Don’t panic.

By Matt Hougan

Out-of-favor funds can bring attractive returns.

By Matt Hougan

New data from Charles Schwab show that the death of mutual funds is happening faster than we thought.

By Dave Nadig

Grab the popcorn. Precidian just doubled-down on its nontransparent active ETF proposal with the SEC this morning.

ETF INDUSTRY PERSPECTIVE

By John Del Vecchio

An index that goes long financially sound companies and shorts the ones with problematic balance sheets.

By Dan Draper

The nature of retirement is changing. How can investors adapt?

By Invesco PowerShares

A more in-depth look at the smart-beta survey's results.