2017 ETF Inflows Hit $423B After Solid Nov

December 01, 2017

ETF inflows slowed from the torrid pace of October, but remained robust during the month of November. Last month, investors added $35.5 billion to U.S.-listed ETFs―down from $55.9 billion the previous month. The data, courtesy of FactSet, also showed that year-to-date inflows hit a new annual record at the end of November, reaching $423.3 billion.

Most asset classes recorded inflows during the latest month. U.S. equity ETFs led the pack, with inflows of $17 billion. Rising hopes that Congress may pass tax cuts by the end of the year fueled enthusiasm for U.S. stocks, which surged to fresh records during November. The S&P 500 reached as high as 2,658, up more than 20%, including dividends.

International equity ETFs also saw strong interest, garnering inflows of $12.1 billion during November. The MSCI all-country index rose for 13-straight months through November, the longest streak on record, according to Reuters.

Meanwhile, U.S. and international fixed-income ETFs had combined inflows of more than $6 billion last month, even as bonds sold off and yields ticked up. The U.S. 10-year Treasury yield touched 2.44% on Nov. 30, up from 2.38% on Oct. 31.

Low-Cost Winners

In terms of individual ETFs, low-cost, broad market ETFs continued to be the winners. The iShares Core S&P 500 ETF (IVV), the Vanguard S&P 500 ETF (VOO) and the iShares Russell 2000 ETF (IWM) were at the top of the heap, with inflows of more than $1.5 billion apiece.

A pair of smart-beta ETFs, the iShares Edge MSCI Min Vol USA ETF (USMV) and the iShares Edge MSCI USA Momentum Factor ETF (MTUM), also made the top 10 list for the month.

On the other hand, the SPDR S&P 500 ETF Trust (SPY) was the biggest loser of the month, with outflows of $5.3 billion. Even though it's cheap, the world's largest ETF has lost market share to even cheaper rivals—like IVV and VOO—this year.

The iShares 20+ Year Treasury Bond ETF (TLT) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) were two other funds to lose favor last month, with outflows of $1.4 billion and $807 million, respectively.

For a full list of the top inflows and outflows for November and year-to-date, see the tables below: 

 

Top Gainers (November 2017)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM YTD 2017 Net Flows($,M)
IVV iShares Core S&P 500 ETF BlackRock 2,712.47 139,086.53 1.99% 29,952.33
VOO Vanguard S&P 500 ETF Vanguard 1,897.51 81,598.59 2.38% 13,920.66
IWM iShares Russell 2000 ETF BlackRock 1,550.63 46,356.78 3.46% 2,948.35
XLF Financial Select Sector SPDR Fund State Street Global Advisors 1,515.55 31,599.68 5.04% 5,019.16
USMV iShares Edge MSCI Min Vol USA ETF BlackRock 1,269.32 15,768.99 8.75% 1,420.30
MTUM iShares Edge MSCI USA Momentum Factor ETF BlackRock 1,186.26 5,877.03 25.29% 3,091.68
IEFA iShares Core MSCI EAFE ETF BlackRock 1,101.46 41,099.53 2.75% 20,078.74
QQQ PowerShares QQQ Trust Invesco PowerShares 1,088.53 58,991.40 1.88% 4,648.87
AGG iShares Core U.S. Aggregate Bond ETF BlackRock 1,081.67 52,308.76 2.11% 10,288.66
FXL First Trust Technology AlphaDEX Fund First Trust 946.66 1,642.41 136.06% 877.90

 

Top Gainers (Year-to-Date)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM November 2017 Net Flows($,M)
IVV iShares Core S&P 500 ETF BlackRock 29,952.33 139,086.53 27.45% 2,712.47
IEFA iShares Core MSCI EAFE ETF BlackRock 20,078.74 41,099.53 95.52% 1,101.46
VEA Vanguard FTSE Developed Markets ETF Vanguard 16,241.65 66,637.96 32.23% 422.48
IEMG iShares Core MSCI Emerging Markets ETF BlackRock 15,476.60 41,584.02 59.28% 342.17
VOO Vanguard S&P 500 ETF Vanguard 13,920.66 81,598.59 20.57% 1,897.51
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF BlackRock 11,442.60 39,508.42 40.77% 628.78
AGG iShares Core U.S. Aggregate Bond ETF BlackRock 10,288.66 52,308.76 24.49% 1,081.67
EFA iShares MSCI EAFE ETF BlackRock 9,690.07 82,709.93 13.27% 208.82
VWO Vanguard FTSE Emerging Markets ETF Vanguard 9,618.54 65,730.09 17.14% 0.15
VCIT Vanguard Intermediate-Term Corporate Bond ETF Vanguard 7,667.00 18,270.05 72.31% 533.37

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