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May ETF Flows: Into DXJ; Out Of GLD, EEM

May ETF Flows: Into DXJ; Out Of GLD, EEM

Related ETFs: GLD | EEM | EWJ | DXJ
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Investors dumped money into Japanese equities funds last month, particularly currency-hedged strategies like the blockbuster DXJ, as total U.S.-listed ETF assets—helped by total inflows of more than $20 billion and a 2.1 percent rise in the S&P 500 Index—rose nearly 1 percent to $1.501 trillion.

The WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) hauled in $2.4 billion, bringing its asset-gathering for the year to around $9.9 billion. DXJ ended the month with just shy of $10 billion, as investors continued to flock to a fund that has protected them from the yen's 15 percent slide this year.

Also among the Top 10 asset-gathering funds last months was the nonhedged iShares MSCI Japan Index Fund (NYSEArca: EWJ). It pulled in $1.21 billion last month and making it an $11.23 billion fund year-to-date. Overall, equities accounted for about $i'd'a 19 billion of the $20 billion in total inflows, according to data compiled by IndexUniverse.

The amazing story of DXJ's rapid rise is based on the Bank of Japan's commitment to weaken the yen as a means to pump up Japan's much-heralded export sector. It's a well-worn story by now, but worth repeating if for no other reason that the BOJ's policy is the quintessence of what some critics say is easy-money central-bank excess in the aftermath of the worst economic crisis since the 1930s.

What happens when all the monetary accommodation ends—especially the Federal Reserve's quantitative easing—is a question that hangs heavily over financial markets these days.

Investors are starting to wonder just what might happen to stock and bond prices when central banks start removing life support, and a few days of heavy selling last month were all about those concerns.

Top Gainers May 2013 ($, Millions)

Ticker Fund Issuer Flows AUM ($, M) Turnover
SPY SPDR S&P 500 SSgA 3,295.83 138,506.84 482,091.24
DXJ WisdomTree Japan Hedged Equity WisdomTree 2,385.04 9,900.70 10,091.26
IEI iShares Barclays 3-7 Year Treasury Bond BlackRock 1,611.72 3,850.30 2,169.02
XLF Financial Select SPDR SSgA 1,537.95 13,940.42 21,130.31
EWJ iShares MSCI Japan BlackRock 1,214.87 11,230.20 17,482.81
UST ProShares Ultra 7-10 Year Treasury ProShares 1,197.85 1,133.95 1,652.79
FIGY Barclays ETN+ FI Enhanced Global High Yield Barclays Capital 1,137.79 1,066.11 314.38
XLK Technology Select SPDR SSgA 912.27 10,819.55 6,213.36
CIU iShares Barclays Intermediate Credit Bond BlackRock 743.49 6,129.66 906.11
QQQ PowerShares QQQ Invesco PowerShares 701.94 34,767.63 51,747.12

 

May 2013 ETF Giants ($, Millions)

Ticker Name Issuer Flows AUM Turnover
SPY SPDR S&P 500 SSgA 3,295.83 138,506.84 482,091.24
VWO Vanguard FTSE Emerging Markets Vanguard -374.63 55,180.14 15,353.92
GLD SPDR Gold SSgA -2,945.81 45,403.87 38,774.68
IVV iShares Core S&P 500 BlackRock 212.84 42,556.73 17,457.90
EFA iShares MSCI EAFE BlackRock 563.22 41,905.71 27,038.21
EEM iShares MSCI Emerging Markets BlackRock -1,976.86 41,780.47 54,614.56
QQQ PowerShares QQQ Invesco PowerShares 701.94 34,767.63 51,747.12
VTI Vanguard Total Stock Market Vanguard 333.89 30,937.98 3,670.26
LQD iShares iBoxx $ Investment Grade Corporate Bond BlackRock -47.60 22,625.16 6,520.42
IWM iShares Russell 2000 BlackRock -1,016.66 21,068.67 89,910.24

 

 

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