Jan. ETF Fund Flows: Exodus From EEM
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)|
AUM ($, M)
|QQQQ||PowerShares QQQ||Invesco PowerShares||2,571.76||25,263.72||74,086.74|
|VWO||Vanguard Emerging Markets||Vanguard||1,741.26||44,822.51||16,561.34|
|SPY||SPDR S&P 500||SSgA||1,472.67||93,488.65||382,154.69|
|EWZ||iShares MSCI Brazil||BlackRock||1,255.00||12,433.03||23,871.43|
|DIA||SPDR Dow Jones Industrial Average Trust||SSgA||1,097.34||10,054.94||20,870.15|
|TLT||iShares Barclays 20+ Year Treasury Bond||BlackRock||786.28||3,173.09||21,368.38|
|IVV||iShares S&P 500||BlackRock||775.86||27,172.72||9,882.89|
|XLF||Financial Select SPDR||SSgA||742.36||8,416.34||28,141.27|
|XLK||Technology Select SPDR||SSgA||723.46||6,761.14||6,045.71|
|VIG||Vanguard Dividend Appreciation||Vanguard||643.37||5,315.04||950.15|
|Biggest Losers ($, Millions)|
AUM ($, M)
|EEM||iShares MSCI Emerging Markets||BlackRock||-6,802.16||39,166.85||64,026.48|
|IWM||iShares Russell 2000||BlackRock||-1,877.34||15,545.58||87,595.72|
|VTI||Vanguard Total Stock Market||Vanguard||-815.67||17,787.90||2,744.50|
|FXI||iShares FTSE/Xinhua China 25||BlackRock||-643.55||7,418.49||12,950.36|
|MDY||SPDR S&P MidCap 400||SSgA||-585.02||11,864.49||13,515.22|
|GDX||Market Vectors Gold Miners||Van Eck||-581.25||6,177.84||14,656.65|
|XRT||SPDR S&P Retail||SSgA||-434.81||508.73||8,992.00|
|UNG||United States Natural Gas||US Commodity Funds||-391.10||2,349.88||3,369.93|
|Flows By Asset Class And Total Flows|
|Net Flows ($, mm)||AUM ($, mm)||% of AUM|
|U.S. Fixed Income||2,914.80||135,347.37||2.15%|
|International Fixed Income||235.68||6,758.87||3.49%|
Be careful when making fruit-basket comparisons; you’re likely to come up with lemons.
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With the S&P 500 topping 2,000, it’s worth understanding how you ended up in the wrong large-cap ETF.
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