Monthly ETF Flows
ETF.com Staff
November 20, 2014
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Eurozone melting down? Buy lots of bond ETFs and call the doctor in the morning.

 

ETF investors poured money into fixed income last month, partly offsetting the effects of the 6.2 percent drop in U.S. stocks that was fueled by renewed concern Europe's problems risked polluting the entire global economy. Overall, flows into U.S.-listed ETF assets were $4.11 billion, but after the market's losses, assets fell about 5 percent to $1.137 trillion.

Seven of last month's most-popular ETFs were focused on fixed income, with total flows into U.S. and international bond funds totaling $7.46 billion and $834.3 million, respectively.

Investors are clearly worried that problems in debt-gorged Greece, Spain and Italy might bring down not only the eurozone as we know it, but also any glimmers of hope that the rest of the global economy might somehow dodge the bullet.

The Vanguard Total Bond Market ETF Fund (NYSEArca: BND) was last month's most popular ETF, pulling in $1.23 billion, and lifting its total assets to more than $17 billion. But Treasury ETFs were a big attraction too, which no doubt helped push yields on 10-year debt down to record lows of around 1.50 percent.

For example, the iShares Barclays 1-3 Year Treasury Bond Fund (NYSEArca: SHY) and the iShares Barclays 7-10 Year Treasury Bond Fund (NYSEArca: IEF) gathered $1.15 billion and $607.5 million, respectively, according to data compiled by IndexUniverse.

The success of Vanguard funds such as BND helped make the Valley Forge, Pa.-based company the most successful firm in terms of asset-gathering last month. Vanguard, the No. 3 U.S. ETF firm by assets, added almost $6.7 billion in assets.

Meanwhile, the Nos. 1 and 2 firms, San Francisco-based BlackRock unit iShares and Boston-based State Street Global Advisors, suffered outflows of $683.5 million and $1.78 billion, respectively.

 

May 2012 Top Gainers ($, Millions)
TickerNameIssuerMay 2012 FlowsMay 2012
AUM ($, M)
May 2012
Turnover
BNDVanguard Total Bond MarketVanguard1,226.2717,055.222,395.59
SHYiShares Barclays 1-3 Year Treasury BondBlackRock1,148.1111,485.663,252.93
VBVanguard Small-CapVanguard959.674,986.59609.32
IEIiShares Barclays 3-7 Year Treasury BondBlackRock759.013,118.091,340.20
VOOVanguard S&P 500Vanguard644.394,410.591,324.90
TIPiShares Barclays TIPS BondBlackRock637.5223,676.842,313.14
LQDiShares iBoxx $ Investment Grade Corporate BondBlackRock613.9921,188.575,110.08
IEFiShares Barclays 7-10 Year Treasury BondBlackRock607.505,304.061,858.50
VOVanguard Mid-CapVanguard594.314,047.69387.04
TLTiShares Barclays 20+ Year Treasury BondBlackRock586.783,786.5224,815.54

 

Flows By Asset Class And Total FlowsNet Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity1,288.87517,954.130.25%
International Equity- 3,387.88251,902.42-1.34%
U.S. Fixed Income7,458.09206,539.363.61%
International Fixed Income834.3116,288.735.12%
Commodities- 1,634.14102,796.08-1.59%
Currency- 63.443,089.37-2.05%
Leveraged1,127.4412,362.639.12%
Inverse- 1,134.7819,683.01-5.77%
Asset Allocation71.681,849.393.88%
Alternatives- 445.214,264.52-10.44%
Total:4,114.95 1,136,729.65 0.36%

 

May 2012 League Table
IssuerNet FlowsAUM ($M)% of AUMTurnover
BlackRock- 683.54468,551.07-0.15%378,775.94
SSgA- 1,782.90277,953.78-0.64%774,197.48
Vanguard6,695.81200,608.653.34%47,152.69
Invesco PowerShares- 1,263.7963,039.58-2.00%94,658.28
Van Eck600.2123,449.752.56%33,827.48
ProShares103.2622,259.270.46%79,694.50
Guggenheim- 66.458,768.01-0.76%2,022.76
First Trust- 32.367,358.38-0.44%2,087.98
Barclays- 787.126,786.01-11.60%25,956.05
Charles Schwab74.296,416.941.16%1,241.06
Direxion166.776,110.672.73%67,101.79
PIMCO806.445,664.4614.24%1,998.85
JPMorgan Chase138.044,140.153.33%1,504.45
ETF Securities- 26.283,648.42-0.72%1,044.27
ALPS218.203,309.636.59%737.08
US Commodity Funds- 21.332,677.11-0.80%11,639.93
Rydex- 28.202,113.39-1.33%5,418.82
Global X61.461,185.765.18%495.44
Merrill Lynch- 49.851,127.05-4.42%254.60
UBS26.211,007.952.60%210.96
VelocityShares- 178.17912.36-19.53%6,699.53
FlexShares108.32854.8812.67%137.53
Emerging Global Shares20.24642.933.15%174.49
AdvisorShares48.69567.808.58%441.37
GreenHaven- 60.73493.14-12.32%122.67
IndexIQ10.48487.542.15%92.49
RevenueShares- 4.19445.11-0.94%68.39
Credit Suisse3.75371.801.01%134.65
Russell- 16.56295.43-5.61%104.93
Deutsche Bank- 4.75158.05-3.00%28.72
RBS Securities9.59155.056.18%114.25
Precidian- 19.67144.63-13.60%157.44
FocusShares3.6095.683.76%145.29
Jefferies-80.160.00%9.68
Teucrium- 12.5577.11-16.27%39.70
FFCM0.0241.990.05%22.00
Exchange Traded Concepts2.4531.417.80%21.47
Morgan Stanley-27.990.00%1.58
Columbia2.7024.6310.98%3.65
Pax World-17.820.00%2.79
FactorShares-16.070.00%11.75
CitiGroup-10.720.00%14.27
ArrowShares3.683.46106.42%3.96
Fidelity---36.43
Goldman Sachs---30.36
WisdomTree49.1414,597.830.34%3,782.83

 



 

Junk Bond Outflows

The powerful flows into bonds pointedly didn't include junk bond funds.

That's because high-yield debt is considered a relatively risky asset class, and investors often move out of riskier assets when markets are roiled.

The SPDR Barclays Capital High Yield Bond ETF (NYSEArca: JNK) suffered outflows of $1.17 billion, making it the No. 2 fund on IndexUniverse's "Biggest Losers" table.

The iShares iBoxx $ High Yield Corporate Bond Fund (NYSEArca: HYG) was No. 9, with redemptions of $522.1 million.

At the top of the outflows list was the iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM), which bled $1.54 billion in assets, a fitting place considering emerging markets, like junk bonds, strongly reflect investors' appetite for risk.

The Vanguard MSCI Emerging Markets ETF (NYSEArca: VWO) lost just $622.4 million in assets, or about 40 percent of EEM's outflows. It's the latest sign that VWO, the cheaper of the two virtually identical funds, is cementing its reputation as the bigger and more popular of the two—at least among buy-and-hold investors.

 

May 2012 Biggest Losers ($, Millions)
TickerNameIssuerMay 2012
Flows
May 2012
AUM ($, M)
May 2012
Turnover
EEMiShares MSCI Emerging MarketsBlackRock- 1,537.4532,675.0554,508.80
JNKSPDR Barclays Capital High Yield BondSSgA- 1,166.5910,526.056,039.15
IWMiShares Russell 2000BlackRock- 1,077.4313,578.75100,616.61
QQQPowerShares QQQInvesco PowerShares- 867.2129,460.7484,703.16
XLFFinancial Select SPDRSSgA- 781.605,526.2829,271.09
XLEEnergy Select SPDRSSgA- 702.626,291.0525,683.31
VWOVanguard MSCI Emerging MarketsVanguard- 622.4047,314.5921,990.90
AAXJiShares MSCI All Country Asia ex-JapanBlackRock- 606.351,660.191,212.53
HYGiShares iBoxx $ High Yield Corporate BondBlackRock- 522.0614,168.568,001.76
VXXiPath S&P 500 VIX Short-Term Futures ETNBarclays- 455.041,848.7023,625.34

 

Vanguard Head-Fake

Flows into U.S. equities were meanwhile $1.29 billion, though it's probably safe to say that that figure is a bit iffy.

That's because a number of Vanguard equity funds were among the top creations last month, and the company is known to do monthly rebalancings at the end of one month and the beginning of another. That pretty much indicates that some of its equity flows shouldn't be taken at face value.

Getting a more reliable sense of how equities fared last month means looking at outflows from EEM, VWO and the $867.2 million that moved out of a big fund like the PowerShares QQQ Trust (NasdaqGM: QQQ).

Overall, $3.39 billion moved out of international equity funds last month—a good indication of how investors have begun to hunker down as the eurozone's problems continue to play out.

 

May 2012 ETF Giants ($, Millions)
TickerNameIssuerMay 2012 FlowsMay 2012
AUM ($, M)
May 2012
Turnover
SPYSPDR S&P 500SSgA- 390.9996,643.50555,885.94
GLDSPDR GoldSSgA- 397.1463,604.9440,329.01
VWOVanguard MSCI Emerging MarketsVanguard- 622.4047,314.5921,990.90
EFAiShares MSCI EAFEBlackRock517.9232,822.1324,953.98
EEMiShares MSCI Emerging MarketsBlackRock- 1,537.4532,675.0554,508.80
QQQPowerShares QQQInvesco PowerShares- 867.2129,460.7484,703.16
IVViShares S&P 500BlackRock- 87.5828,323.5210,964.14
TIPiShares Barclays TIPS BondBlackRock637.5223,676.842,313.14
LQDiShares iBoxx $ Investment Grade Corporate BondBlackRock613.9921,188.575,110.08
VTIVanguard Total Stock MarketVanguard28.4920,300.702,810.14

 

May 2012 Liquidity Mavens
TickerNameIssuerMay 2012 FlowsMay 2012
AUM ($, M)
May 2012
Turnover
SPYSPDR S&P 500SSgA- 390.9996,643.50555,885.94
IWMiShares Russell 2000BlackRock- 1,077.4313,578.75100,616.61
QQQPowerShares QQQInvesco PowerShares- 867.2129,460.7484,703.16
EEMiShares MSCI Emerging MarketsBlackRock- 1,537.4532,675.0554,508.80
GLDSPDR GoldSSgA- 397.1463,604.9440,329.01
XLFFinancial Select SPDRSSgA- 781.605,526.2829,271.09
XLEEnergy Select SPDRSSgA- 702.626,291.0525,683.31
EFAiShares MSCI EAFEBlackRock517.9232,822.1324,953.98
EWZiShares MSCI BrazilBlackRock- 221.427,195.3424,840.89
TLTiShares Barclays 20+ Year Treasury BondBlackRock586.783,786.5224,815.54

 

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