Record ETF Demand In January

February 01, 2018

If you thought 2017 was a hot year for ETFs, 2018 has so far been an inferno. In just one month, investors plowed an eye-popping $68.1 billion into U.S.-listed ETFs, the largest total for any month in history.

If that pace were to continue, ETF inflows for the year would total nearly $824 billion, or 73% above 2017's annual record of $476.1 billion. To be sure, there's no guarantee that January's sizzling rate of inflows ($3.25 billion per day) will continue, but suddenly nothing seems to be out of the realm of possibilities for the booming industry.

Helping to fuel the outsized demand for ETFs has been one of the quickest starts to a year for stocks on record. The S&P 500 posted a 5.6% gain for the month of January, the best performance for that month since 1997. At the same time, the MSCI ACWI Index, which measures stock performance around the world, jumped 5.6% during the month, the second-best January performance ever, according to Reuters.

Unsurprisingly, equity ETFs took in the lion’s share of January's inflows, as investors put their money to work in the surging stock market. U.S. equity ETFs had inflows of $30.8 billion, and international equity ETFs had inflows of $24.3 billion, according to data from FactSet.

Meanwhile, even though bonds sold off in January amid expectations of tighter monetary policy from the Fed, the European Central Bank and others, fixed-income ETFs still witnessed inflows. U.S. fixed-income and international fixed-income ETFs had net creations of a combined $9.3 billion.

$306B ‘SPY’ Leads Pack

The types of ETFs seeing the most demand haven't changed even as the calendar has flipped to a new year. Low-cost, broad market ETFs had the heftiest inflows, including the SPDR S&P 500 ETF Trust (SPY), which topped the charts with a $13.6 billion haul during the first month of the year. SPY's assets under management eclipsed the impressive $300 billion mark to last stand at $305.7 billion.

Competitors like the iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO) also made the top 10 inflows list.

Popular international equity ETFs included the iShares Core MSCI Emerging Markets ETF (IEMG) and the iShares MSCI Japan ETF (EWJ). The only fixed-income product to make the top-10 cut was the iShares JP Morgan USD Emerging Markets Bond ETF (EMB).

Meanwhile, on the outflows side, the iShares Russell 1000 Value ETF (IWD) fared the worst, with redemptions of $2.7 billion.

The iShares iBoxx $ High Yield Corporate Bond ETF (HYG), the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and the Vanguard REIT ETF (VNQ) also had notable outflows during the month.

For a full list of this week's top inflows and outflows, see the tables below:

 

Sumit Roy can be reached at [email protected]. Follow him on Twitter @sumitroy2.

 

Top Gainers (January 2018)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM YTD 2018 Net Flows($,M)
SPY SPDR S&P 500 ETF Trust State Street Global Advisors 13,591.82 306,515.14 4.64% 13,591.82
IVV iShares Core S&P 500 ETF BlackRock 6,374.96 155,946.42 4.26% 6,374.96
IEMG iShares Core MSCI Emerging Markets ETF BlackRock 3,218.62 49,278.89 6.99% 3,218.62
EEM iShares MSCI Emerging Markets ETF BlackRock 3,094.06 45,583.89 7.28% 3,094.06
IEFA iShares Core MSCI EAFE ETF BlackRock 2,949.70 47,433.85 6.63% 2,949.70
VOO Vanguard S&P 500 ETF Vanguard 2,477.39 90,926.67 2.80% 2,477.39
EWJ iShares MSCI Japan ETF BlackRock 2,285.78 22,602.58 11.25% 2,285.78
EMB iShares JP Morgan USD Emerging Markets Bond ETF BlackRock 1,945.12 14,093.80 16.01% 1,945.12
XLI Industrial Select Sector SPDR Fund State Street Global Advisors 1,722.08 14,957.48 13.01% 1,722.08
DIA SPDR Dow Jones Industrial Average ETF Trust State Street Global Advisors 1,447.96 24,988.16 6.15% 1,447.96

 

Biggest Losers (January 2018)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM YTD 2018 Net Flows($,M)
IWD iShares Russell 1000 Value ETF BlackRock -2,725.45 40,058.79 -6.37% -2,725.45
EFA iShares MSCI EAFE ETF BlackRock -1,923.62 87,303.74 -2.16% -1,923.62
HYG iShares iBoxx $ High Yield Corporate Bond ETF BlackRock -1,776.15 15,927.91 -10.03% -1,776.15
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF BlackRock -1,759.21 36,774.56 -4.57% -1,759.21
IWM iShares Russell 2000 ETF BlackRock -1,677.54 42,910.28 -3.76% -1,677.54
IWF iShares Russell 1000 Growth ETF BlackRock -1,262.32 41,776.70 -2.93% -1,262.32
XLP Consumer Staples Select Sector SPDR Fund State Street Global Advisors -1,171.46 8,450.17 -12.18% -1,171.46
JNK SPDR Bloomberg Barclays High Yield Bond ETF State Street Global Advisors -1,032.51 11,635.53 -8.15% -1,032.51
DXJ WisdomTree Japan Hedged Equity Fund WisdomTree -925.20 8,782.82 -9.53% -925.20
VNQ Vanguard REIT ETF Vanguard -759.56 31,928.61 -2.32% -759.56

 

Asset Classes (January 2018)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 30,826.91 2,045,509.96 1.51%
International Equity 24,349.10 872,643.53 2.79%
U.S. Fixed Income 4,470.74 523,758.47 0.85%
International Fixed Income 4,854.91 63,637.40 7.63%
Commodities  831.06 70,223.24 1.18%
Currency 46.79 1,338.03 3.50%
Leveraged -377.39 37,689.03 -1.00%
Inverse 2,871.59 16,798.77 17.09%
Asset Allocation 135.41 9,189.86 1.47%
Alternatives 116.55 4,619.93 2.52%
Total: 68,125.67 3,645,408.21 1.87%

 

January 2018 League Table

Issuer Net Flows ($,M) AUM ($,M) % of AUM YTD 2018 Net Flows($,M)
BlackRock 18,605.38 1,420,390.20 1.31% 18,605.38
Vanguard 11,039.32 898,595.07 1.23% 11,039.32
State Street Global Advisors 23,055.82 674,650.34 3.42% 23,055.82
Invesco PowerShares 1,386.30 146,395.92 0.95% 1,386.30
Charles Schwab 2,760.44 105,781.53 2.61% 2,760.44
First Trust 1,436.98 61,521.02 2.34% 1,436.98
WisdomTree -661.02 47,607.85 -1.39% -661.02
Guggenheim 390.84 40,548.29 0.96% 390.84
VanEck 875.75 35,931.17 2.44% 875.75
ProShares 1,952.82 32,514.00 6.01% 1,952.82
Northern Trust 294.24 16,900.79 1.74% 294.24
PIMCO 653.39 15,483.68 4.22% 653.39
ALPS 55.48 15,416.66 0.36% 55.48
Direxion 29.12 13,685.58 0.21% 29.12
Deutsche Bank -445.04 13,538.16 -3.29% -445.04
Fidelity 1,226.80 10,511.17 11.67% 1,226.80
Global X 1,233.90 10,216.52 12.08% 1,233.90
UBS 129.94 7,851.02 1.66% 129.94
Barclays Bank PLC -108.60 7,596.82 -1.43% -108.60
Goldman Sachs 242.49 7,122.69 3.40% 242.49
JPMorgan 325.57 6,919.05 4.71% 325.57
Credit Suisse 503.87 6,334.30 7.95% 503.87
Exchange Traded Concepts 578.55 5,783.56 10.00% 578.55
IndexIQ 154.85 3,764.76 4.11% 154.85
US Commodity Funds -450.18 3,298.10 -13.65% -450.18
ETF Securities 37.54 2,807.03 1.34% 37.54
The Principal Financial Group 356.55 2,629.49 13.56% 356.55
OppenheimerFunds 35.37 2,611.37 1.35% 35.37
Victory Capital Management 173.67 2,516.72 6.90% 173.67
ETF Managers Group 543.77 2,393.96 22.71% 543.77
KraneShares 331.20 2,102.53 15.75% 331.20
Pacer Financial 159.69 1,809.44 8.83% 159.69
Columbia -25.87 1,370.07 -1.89% -25.87
Franklin Templeton 153.53 1,211.46 12.67% 153.53
ARK 271.77 1,208.70 22.48% 271.77
John Hancock 28.80 1,161.28 2.48% 28.80
AdvisorShares -9.08 1,089.01 -0.83% -9.08
Virtus 11.53 1,062.46 1.08% 11.53
Millington Securities Inc -6.52 1,020.02 -0.64% -6.52
Transamerica -36.99 860.76 -4.30% -36.99
Northern Lights 29.56 846.11 3.49% 29.56
Cambria 28.04 761.34 3.68% 28.04
CitiGroup 76.53 731.87 10.46% 76.53
Legg Mason 23.95 699.91 3.42% 23.95
USAA Asset Management 210.72 588.95 35.78% 210.72
Highland Capital Management 7.24 576.60 1.26% 7.24
FQF Trust -82.55 575.86 -14.34% -82.55
Nuveen 28.29 453.00 6.24% 28.29
Innovator Capital Management 123.48 441.21 27.99% 123.48
Hartford 52.94 432.72 12.23% 52.94
Davis 36.96 420.57 8.79% 36.96
Janus Henderson 72.11 413.06 17.46% 72.11
Amplify 14.91 407.99 3.66% 14.91
Alpha Architect 42.33 394.94 10.72% 42.33
Nationwide Fund Advisors 1.20 369.64 0.32% 1.20
Swedish Export Credit 0.00 348.39 0.00% 0.00
Horizons -1.89 262.15 -0.72% -1.89
Elkhorn 12.34 247.13 4.99% 12.34
Reality Shares 6.94 219.26 3.17% 6.94
Arrow Investment Advisors 37.56 210.88 17.81% 37.56
Teucrium 9.06 159.23 5.69% 9.06
BMO 0.00 151.59 0.00% 0.00
Merk 0.09 142.15 0.07% 0.09
OSI ETF Trust 32.57 138.25 23.56% 32.57
Montage Managers 8.55 131.87 6.48% 8.55
ClearShares 0.00 116.92 0.00% 0.00
US Global Investors -1.65 113.21 -1.46% -1.65
Strategy Shares 6.83 91.54 7.46% 6.83
Aptus Capital Advisors 21.61 83.91 25.75% 21.61
Morgan Stanley 0.00 76.89 0.00% 0.00
EntrepreneurShares, LLC 4.12 63.46 6.49% 4.12
TrimTabs Asset Management 6.17 56.26 10.96% 6.17
ACSI Funds -0.06 52.32 -0.11% -0.06
OBP Capital LLC 0.00 50.45 0.00% 0.00
GraniteShares 13.23 46.63 28.36% 13.23
Point Bridge Capital 5.78 41.51 13.92% 5.78
Natixis 2.50 40.97 6.10% 2.50
AlphaMark Advisors 0.00 28.25 0.00% 0.00
Validea Capital Management 0.00 26.94 0.00% 0.00
Janus 0.06 26.21 0.24% 0.06
Premise Capital 3.11 23.32 13.35% 3.11
Renaissance Capital 0.00 20.95 0.00% 0.00
Diamond Hill 0.00 20.00 0.00% 0.00
Active Weighting Advisors -2.17 16.39 -13.23% -2.17
CSOP 0.99 12.26 8.11% 0.99
Sage Advisory Services 0.00 9.86 0.00% 0.00
StrongVest 0.00 8.89 0.00% 0.00
Advisors Asset Management 2.77 8.31 33.33% 2.77
LocalShares -1.45 7.27 -19.98% -1.45
AlphaClone 0.00 5.31 0.00% 0.00
USCF Advisers 0.00 5.22 0.00% 0.00
SerenityShares 0.00 4.22 0.00% 0.00
SL Advisors 0.00 3.96 0.00% 0.00
Change Finance 0.96 3.95 24.29% 0.96
Regents Park Funds 0.00 3.83 0.00% 0.00
The RBB Fund 0.00 2.48 0.00% 0.00
American Century 0.00 0.00 0.00% 0.00

Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.

 

Find your next ETF

CLEAR FILTER