Monthly ETF Flows
By
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 ($, Millions)
Ticker Name Issuer May 2012 Flows May 2012
AUM ($, M)
May 2012
Turnover
BND Vanguard Total Bond Market Vanguard 1,226.27 17,055.22 2,395.59
SHY iShares Barclays 1-3 Year Treasury Bond BlackRock 1,148.11 11,485.66 3,252.93
VB Vanguard Small-Cap Vanguard 959.67 4,986.59 609.32
IEI iShares Barclays 3-7 Year Treasury Bond BlackRock 759.01 3,118.09 1,340.20
VOO Vanguard S&P 500 Vanguard 644.39 4,410.59 1,324.90
TIP iShares Barclays TIPS Bond BlackRock 637.52 23,676.84 2,313.14
LQD iShares iBoxx $ Investment Grade Corporate Bond BlackRock 613.99 21,188.57 5,110.08
IEF iShares Barclays 7-10 Year Treasury Bond BlackRock 607.50 5,304.06 1,858.50
VO Vanguard Mid-Cap Vanguard 594.31 4,047.69 387.04
TLT iShares Barclays 20+ Year Treasury Bond BlackRock 586.78 3,786.52 24,815.54

 

Flows By Asset Class And Total Flows Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 1,288.87 517,954.13 0.25%
International Equity - 3,387.88 251,902.42 -1.34%
U.S. Fixed Income 7,458.09 206,539.36 3.61%
International Fixed Income 834.31 16,288.73 5.12%
Commodities - 1,634.14 102,796.08 -1.59%
Currency - 63.44 3,089.37 -2.05%
Leveraged 1,127.44 12,362.63 9.12%
Inverse - 1,134.78 19,683.01 -5.77%
Asset Allocation 71.68 1,849.39 3.88%
Alternatives - 445.21 4,264.52 -10.44%
Total: 4,114.95 1,136,729.65 0.36%

 

May 2012 League Table
Issuer Net Flows AUM ($M) % of AUM Turnover
BlackRock - 683.54 468,551.07 -0.15% 378,775.94
SSgA - 1,782.90 277,953.78 -0.64% 774,197.48
Vanguard 6,695.81 200,608.65 3.34% 47,152.69
Invesco PowerShares - 1,263.79 63,039.58 -2.00% 94,658.28
Van Eck 600.21 23,449.75 2.56% 33,827.48
ProShares 103.26 22,259.27 0.46% 79,694.50
Guggenheim - 66.45 8,768.01 -0.76% 2,022.76
First Trust - 32.36 7,358.38 -0.44% 2,087.98
Barclays - 787.12 6,786.01 -11.60% 25,956.05
Charles Schwab 74.29 6,416.94 1.16% 1,241.06
Direxion 166.77 6,110.67 2.73% 67,101.79
PIMCO 806.44 5,664.46 14.24% 1,998.85
JPMorgan Chase 138.04 4,140.15 3.33% 1,504.45
ETF Securities - 26.28 3,648.42 -0.72% 1,044.27
ALPS 218.20 3,309.63 6.59% 737.08
US Commodity Funds - 21.33 2,677.11 -0.80% 11,639.93
Rydex - 28.20 2,113.39 -1.33% 5,418.82
Global X 61.46 1,185.76 5.18% 495.44
Merrill Lynch - 49.85 1,127.05 -4.42% 254.60
UBS 26.21 1,007.95 2.60% 210.96
VelocityShares - 178.17 912.36 -19.53% 6,699.53
FlexShares 108.32 854.88 12.67% 137.53
Emerging Global Shares 20.24 642.93 3.15% 174.49
AdvisorShares 48.69 567.80 8.58% 441.37
GreenHaven - 60.73 493.14 -12.32% 122.67
IndexIQ 10.48 487.54 2.15% 92.49
RevenueShares - 4.19 445.11 -0.94% 68.39
Credit Suisse 3.75 371.80 1.01% 134.65
Russell - 16.56 295.43 -5.61% 104.93
Deutsche Bank - 4.75 158.05 -3.00% 28.72
RBS Securities 9.59 155.05 6.18% 114.25
Precidian - 19.67 144.63 -13.60% 157.44
FocusShares 3.60 95.68 3.76% 145.29
Jefferies - 80.16 0.00% 9.68
Teucrium - 12.55 77.11 -16.27% 39.70
FFCM 0.02 41.99 0.05% 22.00
Exchange Traded Concepts 2.45 31.41 7.80% 21.47
Morgan Stanley - 27.99 0.00% 1.58
Columbia 2.70 24.63 10.98% 3.65
Pax World - 17.82 0.00% 2.79
FactorShares - 16.07 0.00% 11.75
CitiGroup - 10.72 0.00% 14.27
ArrowShares 3.68 3.46 106.42% 3.96
Fidelity - - - 36.43
Goldman Sachs - - - 30.36
WisdomTree 49.14 14,597.83 0.34% 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 ($, Millions)
Ticker Name Issuer May 2012
Flows
May 2012
AUM ($, M)
May 2012
Turnover
EEM iShares MSCI Emerging Markets BlackRock - 1,537.45 32,675.05 54,508.80
JNK SPDR Barclays Capital High Yield Bond SSgA - 1,166.59 10,526.05 6,039.15
IWM iShares Russell 2000 BlackRock - 1,077.43 13,578.75 100,616.61
QQQ PowerShares QQQ Invesco PowerShares - 867.21 29,460.74 84,703.16
XLF Financial Select SPDR SSgA - 781.60 5,526.28 29,271.09
XLE Energy Select SPDR SSgA - 702.62 6,291.05 25,683.31
VWO Vanguard MSCI Emerging Markets Vanguard - 622.40 47,314.59 21,990.90
AAXJ iShares MSCI All Country Asia ex-Japan BlackRock - 606.35 1,660.19 1,212.53
HYG iShares iBoxx $ High Yield Corporate Bond BlackRock - 522.06 14,168.56 8,001.76
VXX iPath S&P 500 VIX Short-Term Futures ETN Barclays - 455.04 1,848.70 23,625.34

 

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 ($, Millions)
Ticker Name Issuer May 2012 Flows May 2012
AUM ($, M)
May 2012
Turnover
SPY SPDR S&P 500 SSgA - 390.99 96,643.50 555,885.94
GLD SPDR Gold SSgA - 397.14 63,604.94 40,329.01
VWO Vanguard MSCI Emerging Markets Vanguard - 622.40 47,314.59 21,990.90
EFA iShares MSCI EAFE BlackRock 517.92 32,822.13 24,953.98
EEM iShares MSCI Emerging Markets BlackRock - 1,537.45 32,675.05 54,508.80
QQQ PowerShares QQQ Invesco PowerShares - 867.21 29,460.74 84,703.16
IVV iShares S&P 500 BlackRock - 87.58 28,323.52 10,964.14
TIP iShares Barclays TIPS Bond BlackRock 637.52 23,676.84 2,313.14
LQD iShares iBoxx $ Investment Grade Corporate Bond BlackRock 613.99 21,188.57 5,110.08
VTI Vanguard Total Stock Market Vanguard 28.49 20,300.70 2,810.14

 

May 2012 Liquidity Mavens
Ticker Name Issuer May 2012 Flows May 2012
AUM ($, M)
May 2012
Turnover
SPY SPDR S&P 500 SSgA - 390.99 96,643.50 555,885.94
IWM iShares Russell 2000 BlackRock - 1,077.43 13,578.75 100,616.61
QQQ PowerShares QQQ Invesco PowerShares - 867.21 29,460.74 84,703.16
EEM iShares MSCI Emerging Markets BlackRock - 1,537.45 32,675.05 54,508.80
GLD SPDR Gold SSgA - 397.14 63,604.94 40,329.01
XLF Financial Select SPDR SSgA - 781.60 5,526.28 29,271.09
XLE Energy Select SPDR SSgA - 702.62 6,291.05 25,683.31
EFA iShares MSCI EAFE BlackRock 517.92 32,822.13 24,953.98
EWZ iShares MSCI Brazil BlackRock - 221.42 7,195.34 24,840.89
TLT iShares Barclays 20+ Year Treasury Bond BlackRock 586.78 3,786.52 24,815.54

 

ETF DAILY DATA

SPY and a host of value-focused U.S. equity ETFs raked in money Thursday, Dec. 18, as the S&P 500 jumped 2.4 percent on the day, helping propel total U.S.-listed ETF assets to $1.977 trillion

A slew of iShares funds, including 'IWM' and 'TLT,' paced BlackRock's issuer-leading inflows on Thursday, Dec. 18, as total U.S.-listed ETF assets jumped to $1.977 trillion.

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