Weekly Flows Positive Despite Worst Stock Market Drop Of Year

May 19, 2017

U.S.-listed ETFs continued to rake in money in the latest week, even as political uncertainty in Washington fueled the largest stock market decline of the year on Wednesday. According to FactSet, $2.9 billion flowed into ETFs on net during the week ending Thursday, May 18. But once again, it was international equity ETFs that pulled in the money at the same time U.S. equity ETFs shed assets. 

That's the third-straight week it's happened. This time, international equity ETFs had inflows of $5.9 billion, while U.S. equity ETFs had outflows of $6.8 billion. The U.S. stock market was roiled on Wednesday amid allegations about President Trump's conversations with ex-FBI director James Comey. The S&P 500 dropped 1.8%, but recovered a big chunk of those losses by Friday. 

International equities weren't immune from the selling, but sentiment on overseas economies has been improving for some time. The exception is Brazil; that market saw its worst decline since 2008 on Thursday after it emerged that there may be recordings of its president attempting to silence a witness in an ongoing corruption probe. 

Bonds were a big beneficiary of this week's stock market volatility. The U.S. 10-year yield fell from 2.32% to 2.23% (bond prices and yields move inversely). U.S. fixed-income ETFs had inflows of $3.1 billion during the period, while international fixed-income ETFs had inflows of $823 million. On the other hand, commodities had outflows of $124 million.

EFA & LQD Lead Inflows
The majority of the individual ETFs to see the largest inflows were international equity funds. That includes the iShares MSCI EAFE ETF (EFA), with creations of $1.3 billion; and the iShares Core MSCI Emerging Markets ETF (IEMG), with creations of $660 million.

Two fixed-income products also made the top 10. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) had inflows of $724 million and the iShares JP Morgan USD Emerging Markets Bond ETF (EMB) had inflows of $343 million.

The only U.S. equity fund to make the cut was the Vanguard S&P 500 ETF (VOO), with its $356 million inflow. On a percentage basis, the biggest winner on the list was the ProShares Short VIX Short-Term Futures ETF (SVXY), with inflows of $778 million, or 72% of its assets under management.

In contrast, on the outflows side, U.S. equity ETFs were everywhere. From the SPDR S&P 500 ETF (SPY), with outflows of $2.4 billion, to the Financial Select Sector SPDR Fund (XLF), with outflows of $926 million, to the iShares Select Dividend ETF (DVY), with outflows of $227 million―every single ETF on the top 10 outflows list holds U.S. equities.

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
EFA iShares MSCI EAFE ETF 1,297.39 74,272.79 1.78%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 724.05 32,877.15 2.25%
IEMG iShares Core MSCI Emerging Markets ETF 660.15 31,067.75 2.17%
VEA Vanguard FTSE Developed Markets ETF 618.25 52,715.62 1.19%
VGK Vanguard FTSE Europe ETF 583.00 13,691.52 4.45%
VWO Vanguard FTSE Emerging Markets ETF 441.61 54,720.97 0.81%
IEFA iShares Core MSCI EAFE ETF 426.06 25,967.46 1.67%
VOO Vanguard S&P 500 ETF 355.91 66,277.11 0.54%
EMB iShares JP Morgan USD Emerging Markets Bond ETF 343.53 11,296.77 3.14%
SVXY ProShares Short VIX Short-Term Futures ETF 324.86 778.10 71.67%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -2,376.70 225,630.36 -1.04%
IWM iShares Russell 2000 ETF -1,793.23 35,254.23 -4.84%
QQQ PowerShares QQQ Trust -1,073.37 48,647.48 -2.16%
XLF Financial Select Sector SPDR Fund -926.45 21,403.91 -4.15%
DIA SPDR Dow Jones Industrial Average ETF Trust -480.56 15,397.74 -3.03%
MDY SPDR S&P Midcap 400 ETF Trust -285.23 18,070.55 -1.55%
DVY iShares Select Dividend ETF -227.39 16,677.61 -1.35%
IYR iShares U.S. Real Estate ETF -225.52 4,451.61 -4.82%
HDV iShares Core High Dividend ETF -195.35 6,338.82 -2.99%
IJJ iShares S&P Mid-Cap 400 Value ETF -190.65 5,518.65 -3.34%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -6,768.33 1,596,932.09 -0.42%
International Equity 5,877.01 636,589.92 0.92%
U.S. Fixed Income 3,053.13 460,652.79 0.66%
International Fixed Income 823.15 48,808.35 1.69%
Commodities -123.54 64,157.90 -0.19%
Currency -36.28 2,683.68 -1.35%
Leveraged -197.51 27,021.54 -0.73%
Inverse 283.12 17,184.06 1.65%
Asset Allocation 10.36 6,931.27 0.15%
Alternatives 25.17 4,031.66 0.62%
Total: 2,946.28 2,864,993.25 0.10%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
% of Average
CLTL PowerShares Treasury Collateral Portfolio 239 1,691 706.71%
UST ProShares Ultra 7-10 Year Treasury 17,956 90,805 505.71%
LRGF iShares Edge MSCI Multifactor USA ETF 152,946 660,165 431.63%
HOLD AdvisorShares Sage Core Reserves ETF 107 386 360.63%
FLN First Trust Latin America AlphaDEX Fund 109,380 360,293 329.39%
EPS WisdomTree Earnings 500 Fund 2,777 7,584 273.08%
IPKW PowerShares International BuyBack Achievers Portfolio 33,073 97,054 293.46%
SMLV SPDR SSGA US Small Cap Low Volatility Index ETF 9,366 25,263 269.71%
VBK Vanguard Small-Cap Growth ETF 186,646 481,889 258.18%
FYC First Trust Small Cap Growth AlphaDEX Fund 17,461 38,856 222.52%


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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