Monthly ETF Flows
By
ETF.com Staff
November 20, 2014
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Investors fled EEM and jumped into U.S. equity ETFs in January.

 

Investors dumped the iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM) in January while diving into U.S. equity ETFs, with net flows into U.S. exchange-traded products totaling $9.95 billion. Total assets in U.S. ETPs climbed about 1 percent, ending the month at almost $1.021 trillion.

The single-biggest story of the month was the culmination of the battle between EEM and the Vanguard MSCI Emerging Markets ETF (NYSEArca: VWO) for bragging rights as the world’s-biggest emerging markets fund. VWO toppled EEM on Jan. 18, and ever since, EEM’s assets have been declining sharply. EEM suffered $6.8 billion in outflows last month, while VWO gathered $1.7 billion.

Apart from VWO, which was the second-most-popular ETF last month, flows were focused on U.S. equities—large-cap funds in particular. More than $10 billion flowed into U.S. equity ETFs and, apart from exiting EEM, investors moved out of smaller-cap holdings and gold, according to data compiled by IndexUniverse.com.

Vanguard, the third-biggest U.S. ETF firm by assets, again bested its rivals in total assets gathered last month, as it did for all of last year. VWO, a $44.82 billion fund as of Jan. 31, was and remains a big part of Vanguard’s steady move up the U.S. ETF league tables.



Top Gainers ($, Millions)
Ticker Name Issuer January 2011
Flows
January 2011
AUM ($, M)
January 2011
Turnover
QQQQ PowerShares QQQ Invesco PowerShares 2,571.76 25,263.72 74,086.74
VWO Vanguard Emerging Markets Vanguard 1,741.26 44,822.51 16,561.34
SPY SPDR S&P 500 SSgA 1,472.67 93,488.65 382,154.69
EWZ iShares MSCI Brazil BlackRock 1,255.00 12,433.03 23,871.43
DIA SPDR Dow Jones Industrial Average Trust SSgA 1,097.34 10,054.94 20,870.15
TLT iShares Barclays 20+ Year Treasury Bond BlackRock 786.28 3,173.09 21,368.38
IVV iShares S&P 500 BlackRock 775.86 27,172.72 9,882.89
XLF Financial Select SPDR SSgA 742.36 8,416.34 28,141.27
XLK Technology Select SPDR SSgA 723.46 6,761.14 6,045.71
VIG Vanguard Dividend Appreciation Vanguard 643.37 5,315.04 950.15

 

Biggest Losers ($, Millions)
Ticker Name Issuer January 2011
Flows
January 2011
AUM ($, M)
January 2011
Turnover
EEM iShares MSCI Emerging Markets BlackRock -6,802.16 39,166.85 64,026.48
GLD SPDR Gold SSgA -2,302.56 52,336.99 49,517.19
IWM iShares Russell 2000 BlackRock -1,877.34 15,545.58 87,595.72
VTI Vanguard Total Stock Market Vanguard -815.67 17,787.90 2,744.50
FXI iShares FTSE/Xinhua China 25 BlackRock -643.55 7,418.49 12,950.36
MDY SPDR S&P MidCap 400 SSgA -585.02 11,864.49 13,515.22
GDX Market Vectors Gold Miners Van Eck -581.25 6,177.84 14,656.65
SLV iShares Silver BlackRock -473.41 9,277.68 16,556.16
XRT SPDR S&P Retail SSgA -434.81 508.73 8,992.00
UNG United States Natural Gas US Commodity Funds -391.10 2,349.88 3,369.93

 

Flows By Asset Class And Total Flows
  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 10,027.20 468,886.68 2.14%
International Equity -1,790.64 273,452.51 -0.65%
U.S. Fixed Income 2,914.80 135,347.37 2.15%
International Fixed Income 235.68 6,758.87 3.49%
Commodities -2,180.11 95,181.77 -2.29%
Currency 174.56 4,890.65 3.57%
Leveraged -698.36 12,647.18 -5.52%
Inverse 948.80 19,649.86 4.83%
Asset Allocation 34.62 536.48 6.45%
Alternatives 279.47 3,517.91 7.94%
Total: 9,946.01 1,020,869.28 0.97%

 

 

VWO Moves Up

SPY remains the world’s biggest ETF, and the SPDR Gold Shares (NYSEArca: GLD) remains in the No. 2 spot, even though investors yanked $2.3 billion out of physical gold ETF last month. SPY had $93.49 billion in assets as of Jan. 31, while GLD had $52.34 billion.

But VWO is now the third-biggest U.S.-listed ETF, and EEM has dropped to the No. 4 slot, with assets now at $39.17 billion.

The toppling of EEM as the biggest emerging markets ETF had been anticipated for more than a year, as VWO, the cheaper and better-performing of the two funds, steadily narrowed the gap last year. Some industry sources have been saying that bigger investors may now finally be convinced that VWO is the superior product. It was launched almost two years after EEM, in March 2005.

“It seem like a lot of institutions are falling into line, and saying: ‘OK, you’ve won me over; it’s cheaper, it performs better and now I feel comfortable buying this,’” said Paul Weisbruch, an ETF trader with King of Prussia, Pa.-based Street One Financial. “That phenomenon is just going to continue.”

VWO costs 0.27 percent, compared with 0.69 percent for EEM, and it tracks its index much more closely. The Vanguard fund uses a replication strategy that seeks to own all the stocks in the underlying index, while EEM uses a sampling strategy that doesn’t require the fund to own all the securities.

Large-Caps Are In

Interest in U.S. equities was concentrated in bigger names, reflecting a shift out of smaller-cap stocks many analysts had anticipated would happen in early 2011.

The PowerShares QQQ Trust (NasdaqGM: QQQQ) was the single most popular U.S. ETF last month, hauling in $2.57 billion. The SPDR S&P 500 ETF (NYSEArca: SPY) gathered $1.47 billion, while the SPDR Dow Jones Industrial Average Trust (NYSEArca: DIA) collected $1.1 billion.

After EEM and GLD, the small-cap iShares Russell 2000 ETF (NYSEArca: IWM) was the third-least-popular fund last month. The ETF suffered outflows of almost $2 billion, leaving about $15.5 billion in the fund, which is one of the more heavily traded U.S. ETFs.

Van Eck’s Market Vectors Gold Miners ETF (NYSEArca: GDX) was also among the 10 least-popular funds last month, with outflows of $581.3 million.



ETF Giants ($, Millions)
Ticker Name Issuer January 2011
Flows
January 2011
AUM ($, M)
January 2011
Turnover
SPY SPDR S&P 500 SSgA 1,472.67 93,488.65 382,154.69
GLD SPDR Gold SSgA -2,302.56 52,336.99 49,517.19
VWO Vanguard Emerging Markets Vanguard 1,741.26 44,822.51 16,561.34
EEM iShares MSCI Emerging Markets BlackRock -6,802.16 39,166.85 64,026.48
EFA iShares MSCI EAFE BlackRock 245.02 37,941.39 20,790.50
IVV iShares S&P 500 BlackRock 775.86 27,172.72 9,882.89
QQQQ PowerShares QQQ Invesco PowerShares 2,571.76 25,263.72 74,086.74
TIP iShares Barclays TIPS Bond BlackRock 75.05 19,465.21 1,732.81
VTI Vanguard Total Stock Market Vanguard -815.67 17,787.90 2,744.50
IWM iShares Russell 2000 BlackRock -1,877.34 15,545.58 87,595.72

 



January 2011 YTD League Table
Issuer Net Flows AUM ($, M) % of AUM Turnover
BlackRock -2,910.57 446,098.30 -0.65% 363,786.99
SSgA 2,228.67 249,790.07 0.89% 590,073.37
Vanguard 4,284.37 152,683.49 2.81% 36,406.26
Invesco PowerShares 3,304.15 58,231.58 5.67% 85,531.48
ProShares 468.26 24,290.20 1.93% 82,624.92
Van Eck 493.80 19,283.49 2.56% 25,346.46
WisdomTree 414.08 10,069.31 4.11% 3,754.86
Barclays Capital 467.62 8,623.88 5.42% 15,784.77
Rydex 200.73 7,748.31 2.59% 6,832.26
Direxion -251.05 6,450.34 -3.89% 54,799.75
First Trust 467.35 5,974.20 7.82% 1,579.96
Merrill Lynch -66.45 4,906.76 -1.35% 24,376.13
US Commodity Funds -122.07 4,865.32 -2.51% 12,140.32
ETF Securities 49.67 3,479.26 1.43% 1,507.04
Guggenheim -148.00 3,391.47 -4.36% 1,216.72
Charles Schwab 307.23 3,061.96 10.03% 987.06
JPMorgan Chase 5.87 2,357.81 0.25% 863.25
PIMCO 168.54 2,333.43 7.22% 517.30
ELEMENTS 125.25 1,609.90 7.78% 388.49
Global X 81.63 1,280.79 6.37% 990.96
ALPS 71.26 787.99 9.04% 233.61
UBS 17.81 647.10 2.75% 118.52
GreenHaven 46.11 600.33 7.68% 165.61
RevenueShares 4.53 560.50 0.81% 77.25
Emerging Global Shares 50.03 442.36 11.31% 190.61
IndexIQ 60.40 359.29 16.81% 167.19
Credit Suisse 18.68 212.70 8.78% 154.00
Jefferies 17.68 157.29 11.24% 43.13
Fidelity - 156.80 0.00% 35.49
AdvisorShares 1.49 153.39 0.97% 57.17
Goldman Sachs - 78.25 0.00% 9.72
VelocityShares 21.76 63.17 34.45% 170.14
Teucrium 12.02 57.46 20.92% 78.97
Grail Advisors - 20.97 0.00% 3.65
CitiGroup 52.50 17.37 302.30% 12.22
U.S. 4.22 14.23 29.65% 7.53
Javelin - 11.98 0.00% 9.20
FaithShares -1.52 10.43 -14.57% 3.97
Pax World - 2.81 0.00% 1.01

 

Vanguard Still Rising

Vanguard hauled in $4.28 billion in new money, lifting its total assets to $152.68 billion.

The fourth-biggest U.S. ETF firm, Invesco PowerShares, followed Vanguard, bringing in $3.3 billion last month. That new money lifted PowerShares’ assets to $58.23 billion.

State Street Global Advisors kept its status as the second-biggest firm, pulling in $2.23 billion in new assets last month. It now manages almost $250 billion in ETF assets—almost 60 percent of that in SPY and GLD.

Among the huge firms, only iShares bled assets last month, largely because of the exodus out of EEM. The world’s-biggest ETF firm suffered outflows of almost $3 billion. The San Francisco-based unit of BlackRock now manages about $446 billion.



Liquidity Mavens
Ticker Name Issuer January 2011
Flows
January 2011
AUM ($, M)
January 2011
Turnover
SPY SPDR S&P 500 SSgA 1,472.67 93,488.65 382,154.69
IWM iShares Russell 2000 BlackRock -1,877.34 15,545.58 87,595.72
QQQQ PowerShares QQQ Invesco PowerShares 2,571.76 25,263.72 74,086.74
EEM iShares MSCI Emerging Markets BlackRock -6,802.16 39,166.85 64,026.48
GLD SPDR Gold SSgA -2,302.56 52,336.99 49,517.19
XLF Financial Select SPDR SSgA 742.36 8,416.34 28,141.27
EWZ iShares MSCI Brazil BlackRock 1,255.00 12,433.03 23,871.43
XLE Energy Select SPDR SSgA -285.16 8,688.62 22,056.99
TLT iShares Barclays 20+ Year Treasury Bond BlackRock 786.28 3,173.09 21,368.38
DIA SPDR Dow Jones Industrial Average Trust SSgA 1,097.34 10,054.94 20,870.15

 

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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