July ETF Flows: Equities Shine In Turmoil
Investors poured some $16 billion into ETFs in July—three-quarters of it into U.S. equities—making the haul the second-highest monthly total since the $28 billion that flowed into ETFs in January. Last month's flows, including the market's rise, lifted total U.S.-listed ETF assets 2.6 percent to $1.209 trillion.
It's no surprise that the SPDR S&P 500 ETF (NYSEArca: SPY), the world's biggest exchange-traded fund, was last month's most popular fund, raking in $2.9 billion and bringing its total assets to almost $108 billion. In sum, U.S. equities hauled in more than $12 billion, and international equities gathered $3.21 billion, according to data compiled by IndexUniverse.
The most conspicuous international fund on our "Top Gainers" list was the Vanguard MSCI Emerging Markets ETF (NYSEArca: VWO), which attracted $1.51 billion in fresh investment. VWO's sponsor, Vanguard, pulled in $4.29 billion in new assets, slightly less than SPY's sponsor, State Street Global Advisors. BlackRock's iShares, the world's biggest ETF sponsor, added $3.93 billion.
The large net inflows number is noteworthy considering all the volatility coursing through financial markets last month. The very survival of the eurozone as we know it is an open question. Stocks first sold off sharply—then rose at the end of the month—as Spain took center stage in the crisis. By the end of the month, the Dow Jones industrial average was somehow 1 percent higher, at 13,008.68.
|Ticker||Top Gainers July 2012||Issuer||July 2012 Flows||July 2012AUM ($, M)||July 2012Turnover|
|SPY||SPDR S&P 500||SSgA||2,901.32||107,947.56||400,439.41|
|IWM||iShares Russell 2000||BlackRock||1,610.43||16,034.67||76,966.41|
|VWO||Vanguard MSCI Emerging Markets||Vanguard||1,512.24||52,491.45||18,232.66|
|HYG||iShares iBoxx $ High Yield Corporate Bond||BlackRock||968.40||15,907.93||6,355.80|
|DIA||SPDR Dow Jones Industrial Average Trust||SSgA||855.28||11,939.75||13,626.01|
|OEF||iShares S&P 100||BlackRock||822.77||4,502.72||2,084.76|
|JNK||SPDR Barclays Capital High Yield Bond||SSgA||619.77||11,525.57||4,042.52|
|EMB||iShares JPMorgan USD Emerging Markets Bond||BlackRock||588.17||5,250.19||2,277.86|
|BOND||PIMCO Total Return||PIMCO||555.30||2,307.30||1,190.24|
|IVV||iShares S&P 500||BlackRock||539.67||30,782.04||12,497.89|
|Flows By Asset Class & Total Flows||Net Flows ($, mm)||AUM ($, mm)||% of AUM|
|U.S. Fixed Income||216.75||214,668.70||0.10%|
|International Fixed Income||1,537.86||19,049.23||8.07%|
Be careful when making fruit-basket comparisons; you’re likely to come up with lemons.
Movers and shakers in the ETF world are often just the opposite.
With the S&P 500 topping 2,000, it’s worth understanding how you ended up in the wrong large-cap ETF.
Pimco is going back to what it does best—generating alpha through fixed-income exposure.