Int’l Stocks Led ETFs To Outflows In June

July 02, 2018

After two months of heady inflows, investors pulled back from ETFs in June. On net, they took out $2.3 billion from U.S.-listed ETFs, pushing year-to-date inflows down to $121.3 billion, according to the latest data from FactSet.

U.S. stocks surged during the first half of the month, before retreating during the second. The push and pull between a strong economy and corporate profits on one hand, and trade war fears on the other, drove the action in equity markets.

Outflows For Int’l Equity ETFs

U.S. equity ETFs picked up a modest $3.6 billion in new money during June. Still, that's much better than the $11.2 billion worth of outflows that international equity ETFs saw.

Sentiment toward international markets—especially emerging markets—took a beating in June due to trade war fears, a rising U.S. dollar and slowing growth.

The iShares MSCI Emerging Markets ETF (EEM) slipped to a one-year low during the month. It was also the ETF with the largest outflows during June, equaling $5.4 billion.

In addition to international equity ETFs, another area investors lost faith in was commodities. They took $2.1 billion from ETFs tied to that asset class, including $1.1 billion from the SPDR Gold Trust (GLD). Gold prices recently dipped to the lowest levels of 2018, near $1,250/oz, well below their spring highs near $1,350.

Bright Spot

The one bright spot on the flows front in June was fixed income, just as it has been all year long. U.S. fixed-income ETFs took in a net $9.1 billion during the month. On a year-to-date basis, U.S. fixed-income ETFs are now the leading asset class, outpacing U.S. equity ETFs and international equity ETFs.

The benchmark U.S. 10-year Treasury yield finished June at 2.83%, close to where it began. The two-year yield edged up from 2.4% to 2.51%.

Five of the 10 ETFs with the largest inflows during June were fixed-income funds, including the Vanguard Mortgage-Backed Securities ETF (VMBS), the Vanguard Short-Term Bond ETF (BSV) and the Schwab U.S. TIPS ETF (SCHP).

For a full list of the top inflows and outflows for June, and 2018 as a whole, see the tables below:

 

Top Gainers (June 2018)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM YTD 2018 Net Flows($,M)
VTV Vanguard Value ETF Vanguard 1,887.72 38,701.92 5.13% 3,062.95
IJR iShares Core S&P Small Cap ETF BlackRock 1,316.74 43,052.04 3.15% 3,440.24
VMBS Vanguard Mortgage-Backed Securities ETF Vanguard 1,268.19 6,751.33 23.13% 2,023.30
BSV Vanguard Short-Term Bond ETF Vanguard 1,194.03 25,520.90 4.91% 1,886.51
SCHP Schwab U.S. TIPS ETF Charles Schwab 1,185.08 5,435.24 27.88% 2,584.52
GDX VanEck Vectors Gold Miners ETF VanEck 937.20 8,350.33 12.64% 1,180.16
IEFA iShares Core MSCI EAFE ETF BlackRock 931.24 56,925.73 1.66% 18,070.97
IWV iShares Russell 3000 ETF BlackRock 905.47 9,325.75 10.75% 666.28
GOVT iShares U.S. Treasury Bond ETF BlackRock 886.67 6,539.75 15.68% 1,452.96
SCHR Schwab Intermediate-Term U.S. Treasury ETF Charles Schwab 880.42 2,767.14 46.66% 1,628.44

 

Top Gainers (Year-to-Date)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM June 2018 Net Flows($,M)
IEFA iShares Core MSCI EAFE ETF BlackRock 18,070.97 56,925.73 46.51% 931.24
IEMG iShares Core MSCI Emerging Markets ETF BlackRock 7,968.17 45,735.38 21.10% 0.00
SHV iShares Short Treasury Bond ETF BlackRock 6,925.71 14,936.57 86.45% 794.27
VOO Vanguard S&P 500 ETF Vanguard 5,790.09 90,714.89 6.82% 306.41
VEA Vanguard FTSE Developed Markets ETF Vanguard 4,755.98 69,485.73 7.35% 221.08
IVV iShares Core S&P 500 ETF BlackRock 4,514.45 148,150.45 3.14% -3,650.38
AGG iShares Core U.S. Aggregate Bond ETF BlackRock 3,787.62 55,271.42 7.36% -127.38
FLOT iShares Floating Rate Bond ETF BlackRock 3,781.83 10,397.96 57.16% 722.83
MTUM iShares Edge MSCI U.S.A. Momentum Factor ETF BlackRock 3,551.04 9,300.03 61.77% -308.38
IJR iShares Core S&P Small Cap ETF BlackRock 3,440.24 43,052.04 8.68% 1,316.74

 

Biggest Losers (June 2018)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM YTD 2018 Net Flows($,M)
EEM iShares MSCI Emerging Markets ETF BlackRock -5,357.84 30,339.41 -15.01% -5,482.00
IVV iShares Core S&P 500 ETF BlackRock -3,650.38 148,150.45 -2.40% 4,514.45
SPY SPDR S&P 500 ETF Trust State Street Global Advisors -3,527.65 259,088.68 -1.34% -20,781.16
EFA iShares MSCI EAFE ETF BlackRock -1,676.68 71,842.17 -2.28% -8,922.27
HYG iShares iBoxx USD High Yield Corporate Bond ETF BlackRock -1,504.54 14,027.11 -9.69% -3,322.03
XLF Financial Select Sector SPDR Fund State Street Global Advisors -1,375.84 29,751.82 -4.42% -1,471.39
IVE iShares S&P 500 Value ETF BlackRock -1,266.50 14,614.67 -7.97% -124.35
VWO Vanguard FTSE Emerging Markets ETF Vanguard -1,186.76 59,457.33 -1.96% -822.95
EZU iShares MSCI Eurozone ETF BlackRock -1,172.23 10,379.17 -10.15% -4,151.52
GLD SPDR Gold Trust State Street Global Advisors -1,147.24 32,946.43 -3.36% -666.15

 

Biggest Losers (Year-to-Date)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM June 2018 Net Flows($,M)
SPY SPDR S&P 500 ETF Trust State Street Global Advisors -20,781.16 259,088.68 -7.43% -3,527.65
EFA iShares MSCI EAFE ETF BlackRock -8,922.27 71,842.17 -11.05% -1,676.68
EEM iShares MSCI Emerging Markets ETF BlackRock -5,482.00 30,339.41 -15.30% -5,357.84
IWD iShares Russell 1000 Value ETF BlackRock -4,304.13 36,075.42 -10.66% -20.33
EZU iShares MSCI Eurozone ETF BlackRock -4,151.52 10,379.17 -28.57% -1,172.23
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF BlackRock -3,880.50 33,093.55 -10.50% 855.42
HYG iShares iBoxx USD High Yield Corporate Bond ETF BlackRock -3,322.03 14,027.11 -19.15% -1,504.54
JNK SPDR Bloomberg Barclays High Yield Bond ETF State Street Global Advisors -2,838.02 9,498.13 -23.01% -215.13
DXJ WisdomTree Japan Hedged Equity Fund WisdomTree -2,768.62 6,051.49 -31.39% -132.54
VNQ Vanguard Real Estate ETF Vanguard -2,764.99 31,067.59 -8.17% -133.30

 

Asset Classes (June 2018)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 3,602.18 1,995,905.02 0.18%
International Equity -11,203.84 781,801.86 -1.43%
U.S. Fixed Income 9,080.77 552,422.38 1.62%
International Fixed Income -953.51 61,810.89 -1.37%
Commodities ETFs -2,127.93 65,667.26 -3.24%
Currency -20.12 1,216.64 -1.65%
Leveraged -375.63 34,999.73 -1.07%
Inverse -244.34 13,112.64 -1.86%
Asset Allocation 3.90 9,225.61 0.04%
Alternatives -62.46 4,400.60 -1.42%
Total: -2,300.53 3,520,562.64 -0.07%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 36,149.19 1,995,905.02 1.80%
International Equity 31,135.88 781,801.86 4.05%
U.S. Fixed Income 40,686.38 552,422.38 7.32%
International Fixed Income 5,704.58 61,810.89 9.62%
Commodities ETFs 1,967.48 65,667.26 3.00%
Currency 27.29 1,216.64 2.24%
Leveraged 2,611.55 34,999.73 7.46%
Inverse 2,473.32 13,112.64 18.86%
Asset Allocation 554.94 9,225.61 6.02%
Alternatives -38.60 4,400.60 -0.88%
Total: 121,266.81 3,520,562.64 3.46%

 

June 2018 League Table

Issuer Net Flows ($,M) AUM ($,M) % of AUM YTD 2018 Net Flows($,M)
BlackRock -8,971.63 1,375,042.93 -0.65% 43,597.07
Vanguard 6,569.23 882,969.74 0.74% 37,832.51
SSGA -5,466.08 610,257.39 -0.90% -12,420.71
Invesco -1,004.75 185,115.97 -0.54% 4,085.69
Charles Schwab 3,482.92 114,330.78 3.05% 15,935.77
First Trust 1,186.94 66,554.41 1.78% 7,774.02
WisdomTree -521.60 41,446.96 -1.26% -3,325.37
VanEck 626.88 34,767.79 1.80% 1,965.14
ProShares -633.49 29,640.15 -2.14% 2,396.47
Northern Trust 78.18 16,664.41 0.47% 875.69
PIMCO -82.61 16,242.66 -0.51% 1,583.11
ALPS 313.61 14,294.79 2.19% 454.88
Direxion -161.52 12,775.28 -1.26% 693.16
Deutsche Bank 172.90 12,304.65 1.41% -705.63
Fidelity 136.12 11,096.74 1.23% 2,034.36
Global X 83.96 10,004.20 0.84% 2,205.68
Goldman Sachs 446.49 8,194.59 5.45% 1,861.11
JPMorgan 605.21 8,178.31 7.40% 2,103.52
UBS 55.56 6,788.09 0.82% -106.04
Barclays Bank PLC -88.66 5,630.81 -1.57% 2,004.09
Exchange Traded Concepts -35.47 5,422.26 -0.65% 629.73
IndexIQ 47.85 4,263.24 1.12% 798.99
Credit Suisse 111.77 4,204.42 2.66% -184.63
The Principal Financial Group -21.82 3,424.87 -0.64% 1,260.22
US Commodity Funds -183.08 3,130.03 -5.85% -861.16
Victory Capital Management 107.33 2,895.51 3.71% 645.75
ETF Managers Group 150.24 2,831.34 5.31% 940.90
OppenheimerFunds 156.43 2,751.50 5.69% 238.61
Pacer Financial 61.66 2,405.78 2.56% 807.68
ETF Securities -259.25 2,137.81 -12.13% -296.84
ARK 279.26 2,121.57 13.16% 1,096.51
KraneShares -165.54 2,019.79 -8.20% 576.37
Franklin Templeton Investments 11.14 1,385.44 0.80% 419.06
John Hancock 25.67 1,284.96 2.00% 194.61
USAA Asset Management 10.07 1,056.26 0.95% 743.43
Virtus 6.45 1,019.56 0.63% 88.62
Columbia -38.13 1,010.80 -3.77% -184.53
Northern Lights 41.15 995.80 4.13% 213.29
Millington Securities Inc -11.59 929.17 -1.25% -42.89
Hartford 70.87 923.23 7.68% 591.85
AdvisorShares -15.42 880.72 -1.75% 9.56
Legg Mason -1.29 798.72 -0.16% 157.39
Transamerica -14.59 784.97 -1.86% -59.54
CitiGroup -1.71 729.35 -0.23% 131.12
Innovator Capital Management 57.01 719.62 7.92% 200.94
Cambria -10.66 708.45 -1.51% 42.62
Amplify 63.61 651.94 9.76% 419.40
OSI ETF Trust 33.79 625.22 5.41% -24.63
Highland Capital Management 10.93 598.52 1.83% 38.31
Janus Henderson 53.05 573.29 9.25% 289.34
Davis 25.94 523.24 4.96% 168.55
Nuveen -57.18 487.91 -11.72% 76.31
Alpha Architect 10.45 479.42 2.18% 156.76
Nationwide Fund Advisors -1.44 372.24 -0.39% 16.23
Horizons 34.00 364.37 9.33% 114.84
GraniteShares 244.96 300.17 81.61% 277.62
Reality Shares -2.25 247.95 -0.91% 158.84
Aberdeen Asset Management 3.66 199.81 1.83% 115.80
Arrow Investment Advisors -2.54 174.65 -1.45% 9.58
BMO 0.00 162.47 0.00% 9.74
Montage Managers 23.01 152.67 15.07% 31.54
Merk 3.23 142.10 2.28% 10.65
Aptus Capital Advisors 4.60 138.75 3.32% 74.75
Strategy Shares 10.51 115.32 9.11% 32.76
The RBB Fund 4.50 112.56 4.00% 107.88
ClearShares 0.00 111.44 0.00% 0.00
US Global Investors -1.46 104.07 -1.40% 2.31
TrimTabs Asset Management 6.22 97.06 6.40% 47.04
EntrepreneurShares, LLC 2.68 73.83 3.62% 11.77
FQF Trust -4.85 63.28 -7.66% -9.70
Exponential ETFs 2.41 63.16 3.82% 10.93
OBP Capital LLC -0.09 54.49 -0.17% 5.01
Natixis 0.00 41.68 0.00% 4.72
Point Bridge Capital 0.01 38.97 0.02% 5.78
PGIM Investments 3.76 33.81 11.11% 8.76
Morgan Stanley -0.00 31.43 -0.00% -0.00
Premise Capital 4.52 31.31 14.44% 12.05
Validea Capital Management 1.45 27.83 5.22% 1.48
AlphaMark Advisors 0.00 27.45 0.00% 0.00
Renaissance Capital 0.00 21.51 0.00% 0.00
Diamond Hill 0.00 20.94 0.00% 1.52
American Century 0.00 19.07 0.00% 18.60
Metaurus Advisors 2.01 18.81 10.71% 13.45
Active Weighting Advisors 2.69 15.41 17.43% 0.64
Sage Advisory Services 4.84 14.52 33.36% 4.84
USCF Advisers -0.00 14.23 -0.00% 2.25
Advisors Asset Management 2.68 11.64 23.03% 6.58
CSOP 0.00 11.02 0.00% 2.79
StrongVest 0.00 8.63 0.00% 0.00
Cboe Vest Financial 2.04 8.01 25.47% 8.03
TriLine Index Solutions 0.00 6.66 0.00% 6.25
SL Advisors 1.31 6.37 20.50% 2.57
Little Harbor Advisors 0.00 5.55 0.00% 5.64
Regents Park Funds 0.00 4.69 0.00% 2.49
SerenityShares -0.00 4.22 -0.01% 0.00
Change Finance -0.00 3.82 -0.09% 0.96
Whitford Asset Management -0.01 3.12 -0.31% 0.62
Salt Financial 0.00 2.39 0.00% 2.50
Swedish Export Credit 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.

 

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