Fixed Income ETFs Power Weekly Flows Of $8.2B

July 14, 2017

Overall, $8.2 billion flowed into U.S.-listed ETFs during the week ending Thursday, July 13, according to the latest data from FactSet. With the exception of commodities, which had outflows of $500 million, most other segments saw net inflows.

That includes U.S. equity ETFs, which picked up $3.5 billion of new money from investors as the S&P 500 zoomed to a fresh record high. The index was last trading around 2,460, up 10.5% year-to-date.

Dovish comments from Fed Chair Janet Yellen in front of Congress raised speculation that the central bank may lift rates more slowly than expected. Yellen said that inflation was still quite low and that the federal funds rate won't have to rise much more to get to a neutral policy stance.

Those dovish comments also sparked buying in bond markets. The U.S. 10-year Treasury yield dipped 7 basis points week-over-week to 2.32% (bond prices and yields move inversely). U.S. fixed-income ETFs had the largest inflows of the period, with creations totaling $3.8 billion.

The only other segment to see notable inflows was international equity ETFs, with creations of $1.6 billion. Year-to-date, net inflows for all ETFs equals $259.3 billion.

Surge Of Demand For 'GBIL' 
Easily taking the No. 1 spot on the weekly inflows list was the PowerShares QQQ Trust (QQQ). Its $2.9 billion worth of inflows beat out the iShares Core MSCI EAFE ETF (IEFA), which gathered $1.7 billion of its own. 

A host of fixed-income ETFs also made the top 10, including the iShares 20+ Year Treasury Bond ETF (TLT), the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), the iShares Core U.S. Aggregate Bond ETF (AGG), the iShares Short Treasury Bond ETF (SHV) and the SPDR Bloomberg Barclays Convertible Securities ETF (CWB). Each had inflows of $250 million to $600 million during the period. 

But the biggest standout among fixed-income ETFs was the Goldman Sachs TreasuryAccess 0-1 Year ETF (GBIL). This ETF had inflows of $450 million, equal to a whopping 500% jump in its assets under management. 

DBEF Assets Plunge
Meanwhile, on the outflows side, this week's biggest loser was the Deutsche X-trackers MSCI EAFE Hedged Equity ETF (DBEF), with redemptions of $1.1 billion. Despite the enthusiasm about international equity ETFs this year, DBEF has largely been shunned by investors.

The iShares MSCI Japan ETF (EWJ), with outflows of $807 million, was another international equity ETF to fall out of favor during the week.

On the fixed-income front, the iShares JP Morgan USD Emerging Markets Bond ETF (EMB), had the largest outflows, at $270 million. 

The SPDR Gold Trust (GLD), with outflows of $453 million, was another notable loser.

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
QQQ PowerShares QQQ Trust 2,879.07 53,819.43 5.65%
IEFA iShares Core MSCI EAFE ETF 1,664.58 31,446.02 5.59%
TLT iShares 20+ Year Treasury Bond ETF 567.13 8,046.35 7.58%
IVV iShares Core S&P 500 ETF 525.47 117,625.83 0.45%
GBIL Goldman Sachs TreasuryAccess 0-1 Year ETF 450.02 540.05 499.82%
HYG iShares iBoxx $ High Yield Corporate Bond ETF 341.76 18,035.09 1.93%
AGG iShares Core U.S. Aggregate Bond ETF 337.55 48,003.13 0.71%
SHV iShares Short Treasury Bond ETF 297.75 5,381.67 5.86%
CWB SPDR Bloomberg Barclays Convertible Securities ETF 253.63 4,258.50 6.33%
IWO iShares Russell 2000 Growth ETF 245.16 8,117.17 3.11%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
DBEF Deutsche X-trackers MSCI EAFE Hedged Equity ETF -1,116.56 7,504.12 -12.95%
SPY SPDR S&P 500 ETF Trust -1,059.77 236,445.30 -0.45%
EWJ iShares MSCI Japan ETF -806.89 16,460.33 -4.67%
GLD SPDR Gold Trust -452.79 32,474.34 -1.38%
IYR iShares U.S. Real Estate ETF -373.23 4,372.92 -7.86%
IWM iShares Russell 2000 ETF -365.63 37,307.41 -0.97%
EMB iShares JP Morgan USD Emerging Markets Bond ETF -270.46 11,717.68 -2.26%
XRT SPDR S&P Retail ETF -260.25 148.39 -63.69%
JNK SPDR Bloomberg Barclays High Yield Bond ETF -239.23 11,656.65 -2.01%
IWD iShares Russell 1000 Value ETF -190.91 36,384.37 -0.52%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 3,482.31 1,676,385.23 0.21%
International Equity 1,639.93 679,399.71 0.24%
U.S. Fixed Income 3,760.97 481,026.99 0.78%
International Fixed Income -125.28 51,329.60 -0.24%
Commodities -498.31 61,233.00 -0.81%
Currency -9.77 1,476.48 -0.66%
Leveraged 219.25 28,651.15 0.77%
Inverse -225.96 16,336.06 -1.38%
Asset Allocation 32.10 7,264.41 0.44%
Alternatives -25.61 3,743.86 -0.68%
Total: 8,249.61 3,006,846.49 0.27%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
LTPZ PIMCO 15+ Year US TIPS Index ETF 48,058 251,476 523.27%
HOLD AdvisorShares Sage Core Reserves ETF 526 1,413 268.55%
EUSC WisdomTree Europe Hedged SmallCap Equity Fund 53,369 160,911 301.51%
JJC iPath Bloomberg Copper Subindex Total Return ETN 58,735 160,376 273.05%
FEMS First Trust Emerging Markets Small Cap AlphaDEX Fund 50,030 192,445 384.66%
DBEM Deutsche X-trackers MSCI Emerging Markets Hedged Equity ETF 58,228 160,930 276.38%
MLPO Credit Suisse S&P MLP Index ETN 25 100 393.66%
DEW WisdomTree Global High Dividend Fund 5,287 11,768 222.58%
SJB ProShares Short High Yield 142,044 562,218 395.81%
EEMS iShares MSCI Emerging Markets Small Cap ETF 33,962 71,943 211.83%

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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