Weekly ETF Inflow Streak Since Election Continues

March 10, 2017

The pace of inflows into U.S.-listed ETFs moderated this week, but remained in positive territory. In total, ETFs took in $3.4 billion worth of inflows in the week ending Thursday, March 9, according to FactSet. That means ETFs have now seen 18-straight weeks of positive inflows―a streak that began in earnest after the presidential election in early November. 

Unlike last week, not all segments of the ETF market saw buying. U.S. equity ETFs continued to be hot, garnering $2 billion worth of inflows, even as the S&P 500 backed off modestly from its record highs. The index fell as much as 1.5% from all-time-high levels of 2,401 this week. 

International equity ETFs also were in favor, with $2.7 billion worth of inflows. On the other hand, U.S. fixed-income ETFs saw outflows of $1.5 billion, as Treasurys sold off hard in anticipation of a Fed rate hike next week. The U.S. 10-year yield leapt from 2.48% to as high as 2.62% during the week (bond prices and yields move inversely).

Another segment to lose favor was commodity ETFs, with outflows of $888 million. International fixed-income ETFs had modest inflows of $107 million.

IVV AUM Tops $100 Billion
The iShares Core S&P 500 ETF (IVV) topped the weekly inflows list while hitting a major milestone. The fund had $2.4 billion worth of inflows, which was enough to propel total assets in the fund to more than $100 billion. That makes IVV the second ETF in history to top that big, round number since the SPDR S&P 500 ETF (SPY) did it in 2007.

After IVV, the iShares U.S. Real Estate ETF (IYR) took in the most inflows, at $663 million. The iShares Core MSCI Emerging Markets ETF (IEMG) was another winner, with inflows of $445 million.

In terms of fixed income, two such funds made the top 10. The iShares 20+ Year Treasury Bond ETF (TLT) and the Vanguard Short-Term Corporate Bond Index Fund (VCSH) had inflows of more than $290 million each, despite the sell-off in bond prices this week. 

Junk Bonds & Gold Lose Assets
On the outflows side, SPY was the biggest loser, with redemptions of $4.1 billion. That was followed by the largest junk bond ETF, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), which had outflows of $2.2 billion. 

Crude oil prices fell below $50/barrel for the first time this year, spooking investors in energy-heavy junk bonds. 

The SPDR Bloomberg Barclays High Yield Bond ETF (JNK) was another junk-bond ETF to see outflows, to the tune of $536 million, while the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), which holds higher-quality bonds, saw outflows of $605 million.

Meanwhile, two physically backed gold ETFs also saw sizable outflows this week, as prices for the yellow metal briefly slipped below $1,200 for the first time since January, ahead of the likely Fed rate hike. The SPDR Gold Trust (GLD) and the iShares Gold Trust (IAU) had redemptions of $432 million and $216 million, respectively.

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

 

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
IVV iShares Core S&P 500 ETF 2,385.92 100,405.43 2.43%
IYR iShares U.S. Real Estate ETF 663.18 4,799.24 16.03%
IEFA iShares Core MSCI EAFE ETF 573.95 19,897.22 2.97%
QQQ PowerShares QQQ Trust 556.72 46,418.88 1.21%
IEMG iShares Core MSCI Emerging Markets ETF 445.35 24,149.63 1.88%
VOO Vanguard S&P 500 Index Fund 425.03 63,980.13 0.67%
VEA Vanguard FTSE Developed Markets ETF 365.67 44,562.08 0.83%
TLT iShares 20+ Year Treasury Bond ETF 297.08 5,426.56 5.79%
DIA SPDR Dow Jones Industrial Average ETF Trust 292.81 16,616.18 1.79%
VCSH Vanguard Short-Term Corporate Bond Index Fund 290.79 17,673.74 1.67%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -4,120.26 242,237.72 -1.67%
HYG iShares iBoxx $ High Yield Corporate Bond ETF -2,228.43 16,229.67 -12.07%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF -604.86 29,748.50 -1.99%
JNK SPDR Bloomberg Barclays High Yield Bond ETF -535.74 12,100.85 -4.24%
GLD SPDR Gold Trust -432.43 32,424.55 -1.32%
IWM iShares Russell 2000 ETF -360.02 36,031.74 -0.99%
SJNK SPDR Bloomberg Barclays Short Term High Yield Bond ETF -242.09 3,630.79 -6.25%
IAU iShares Gold Trust -215.91 7,668.43 -2.74%
XLU Utilities Select Sector SPDR Fund -212.49 6,457.25 -3.19%
IBB iShares NASDAQ Biotechnology ETF -192.22 8,339.59 -2.25%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 1,954.84 1,601,051.28 0.12%
International Equity 2,732.69 562,528.16 0.49%
U.S. Fixed Income -1,478.70 432,335.44 -0.34%
International Fixed Income 107.37 43,294.01 0.25%
Commodities -888.35 62,310.47 -1.43%
Currency -53.18 2,977.97 -1.79%
Leveraged 892.03 25,839.13 3.45%
Inverse 27.12 17,586.93 0.15%
Asset Allocation -71.55 6,612.08 -1.08%
Alternatives 163.23 3,954.00 4.13%
Total: 3,385.48 2,758,489.49 0.12%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
HYLB Deutsche X-trackers USD High Yield Corporate Bond ETF 12,525 74,634 595.89%
KCE SPDR S&P Capital Markets ETF 18,229 76,431 419.28%
BSJM Guggenheim BulletShares 2022 High Yield Corporate Bond ETF 51,437 165,673 322.09%
IBDP iShares iBonds Dec 2024 Term Corporate ETF 47,038 138,258 293.93%
IRY SPDR S&P International Health Care Sector ETF 13,132 51,685 393.57%
XT iShares Exponential Technologies ETF 145,596 592,305 406.81%
HEWP iShares Currency Hedged MSCI Spain ETF 14,850 38,025 256.05%
ISHG iShares 1-3 Year International Treasury Bond ETF 5,272 10,406 197.37%
IEO iShares U.S. Oil & Gas Exploration & Production ETF 87,998 180,487 205.10%
EWN iShares MSCI Netherlands ETF 225,676 580,400 257.18%

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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