'IEFA' Hot, 'EMB' Not, In Latest Weekly ETF Flows

July 07, 2017

Inflows into ETFs continued at a slow pace for a third-straight week, according to the latest data from FactSet. U.S.-listed ETFs gathered $2.5 billion in new money in the week ending Thursday, July 6, after seeing inflows of $3.6 billion and $1.4 billion in the previous two weeks, respectively. 

Total assets under management are hovering just below the $3 trillion mark, and year-to-date inflows now stand at $251.6 billion.

In terms of asset classes, the familiar pattern of U.S. equity outflows and international equity inflows showed up again. The former had net redemptions of $1.7 billion, while the latter had net creations of $3.2 billion during the week. 

A big sell-off in the S&P 500 on Thursday briefly pushed the U.S. stock market index to a six-week low. A spike in interest rates around the world prompted the sell-off, with the 10-year Treasury yield hitting a two-month high around 2.4%. 

But the spike in yields and sell-off in bond prices (bond prices and yields move inversely) didn't dissuade investors from putting more money into U.S. fixed-income ETFs. That segment saw inflows of $2.7 billion during the week.

International fixed-income ETFs weren't so fortunate; they had outflows of $929 million during the period. Commodity ETFs were another area to see net outflows, to the tune of $802 million.

IVV & IEFA Remain Hot
Topping the weekly inflows list was the familiar iShares Core MSCI EAFE ETF (IEFA), with creations of $1.6 billion. Year-to-date, the ETF now has seen $11.3 billion of fresh money come into it, which ranks it at No. 2 for 2017 as a whole. 

The only ETF with a higher year-to-date rank is the iShares Core S&P 500 ETF (IVV). Its weekly creations of $658 million pushed total 2017 inflows for the fund to a whopping $17.6 billion. IVV is, of course, now the second-largest ETF in the world, with $116.5 billion in assets under management.

A few other notable equity ETFs to make the cut this week were the Financial Select Sector SPDR Fund (XLF), with creations of $1 billion; the VanEck Vectors Semiconductor ETF (SMH), with creations of $357 million; and the Schwab International Equity ETF (SCHF), with creations of $302 million.

On the fixed-income side, ETFs such as the iShares Core U.S. Aggregate Bond ETF (AGG), the iShares $ iBoxx $ Investment Grade Corporate Bond ETF (LQD) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) were the biggest winners of the week. 

Investors Dump EM Bond ETF
At the other end of the spectrum, the most noticeable outflows came from the iShares JPMorgan USD Emerging Markets Bond ETF (EMB), with weekly redemptions of $1 billion, representing a decline in AUM of 7.8%.

The SPDR Gold Trust (GLD), with its outflows of $518 million and the United States Oil Fund (USO), with its outflows of $319 million, were also salient on the list. 

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
IEFA iShares Core MSCI EAFE ETF 1,577.63 29,499.39 5.65%
XLF Financial Select Sector SPDR Fund 999.89 25,566.27 4.07%
AGG iShares Core U.S. Aggregate Bond ETF 984.55 47,588.28 2.11%
ITOT iShares Core S&P Total U.S. Stock Market ETF 738.55 9,708.21 8.23%
IVV iShares Core S&P 500 ETF 657.85 116,529.36 0.57%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 432.75 36,111.53 1.21%
JNK SPDR Bloomberg Barclays High Yield Bond ETF 369.78 11,904.18 3.21%
SMH VanEck Vectors Semiconductor ETF 356.55 748.08 91.07%
VWO Vanguard FTSE Emerging Markets ETF 326.40 56,055.89 0.59%
SCHF Schwab International Equity ETF 301.81 10,419.05 2.98%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -1,283.18 236,359.69 -0.54%
EMB iShares JP Morgan USD Emerging Markets Bond ETF -1,003.81 11,949.22 -7.75%
IJH iShares Core S&P Mid-Cap ETF -888.05 39,480.11 -2.20%
IWM iShares Russell 2000 ETF -585.42 37,722.47 -1.53%
MDY SPDR S&P Midcap 400 ETF Trust -541.50 18,774.85 -2.80%
GLD SPDR Gold Trust -517.52 32,969.52 -1.55%
DIA SPDR Dow Jones Industrial Average ETF Trust -460.25 16,241.48 -2.76%
IWR iShares Russell Midcap ETF -355.32 15,613.93 -2.23%
QQQ PowerShares QQQ Trust -341.61 49,756.18 -0.68%
USO United States Oil Fund LP -318.69 2,897.68 -9.91%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -1,748.98 1,667,596.90 -0.10%
International Equity 3,238.68 669,806.68 0.48%
U.S. Fixed Income 2,686.52 476,748.94 0.56%
International Fixed Income -928.64 51,300.15 -1.81%
Commodities -802.37 61,734.22 -1.30%
Currency 25.27 1,477.16 1.71%
Leveraged 256.23 27,951.94 0.92%
Inverse -137.55 16,630.79 -0.83%
Asset Allocation 21.38 7,229.71 0.30%
Alternatives -115.31 3,814.69 -3.02%
Total: 2,495.24 2,984,291.19 0.08%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
CLTL PowerShares Treasury Collateral Portfolio 43 402 925.65%
PHDG Powershares S&P 500 Downside Hedged Portfolio 69,527 340,500 489.74%
VTHR Vanguard Russell 3000 ETF 19,046 71,775 376.85%
RJI Elements Rogers International Commodity Index-Total Return ETN 423,977 1,631,467 384.80%
PTH PowerShares DWA Healthcare Momentum Portfolio 19,074 116,617 611.40%
HYHG ProShares High Yield-Interest Rate Hedged ETF 13,342 47,801 358.28%
PXF PowerShares FTSE RAFI Developed Markets ex-US Portfolio 74,399 268,534 360.94%
RYH Guggenheim S&P 500 Equal Weight Healthcare ETF 27,486 139,008 505.74%
FAD First Trust Multi Cap Growth AlphaDEX Fund 7,150 27,268 381.35%
IBND SPDR Bloomberg Barclays International Corporate Bond ETF 51,648 152,396 295.07%

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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