Weekly ETF Inflows Sizzle With Stock Market

January 12, 2018

A sizzling start to the year for the stock market went hand in hand with a sizzling start to the year for ETF inflows. The S&P 500 gained 4% in the first 10 trading sessions of 2018, its best start to a year since 2003, according to CNBC.

At the same time, U.S.-listed ETFs took in an impressive $18.7 billion during the week ending Thursday, Jan. 11, according to the latest data from FactSet. Year-to-date inflows now stand at $17.7 billion.

Unsurprisingly, most of this week's inflows went into U.S. equity ETFs―$9.2 billion―amid growing euphoria about the state of the U.S. economy and corporate profits.

International equity ETFs weren't far behind, with $7 billion worth of inflows of their own. U.S. fixed-income ETFs and international fixed-income ETFs followed suit, with inflows of $1 billion and $1.4 billion, respectively.

Bonds were hit this week, as the U.S. two-year Treasury yield topped the 2% mark for the first time since the financial crisis on the back of expectations that the Federal Reserve will have to hike rates more aggressively this year as inflation picks up. The 10-year Treasury yield briefly touched 2.6%, close to last year's high.

Low-Cost Broad ETFs Still Favored

Just like last year, ETF investors continued to favor low-cost broad market ETFs. The SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV) took in a combined $5 billion this week.

The Industrial Select Sector SPDR Fund (XLI) was another favorite, garnering inflows of $1.2 billion.

In terms of international ETFs, the iShares Core MSCI Emerging Markets ETF (IEMG) and the iShares MSCI Emerging Markets ETF (EEM) had inflows of $1.1 billion and $837 million, respectively.

On the outflows side, the iShares Russell 1000 Value ETF (IWD), the Financial Select Sector SPDR Fund (XLF), the SPDR Gold Trust (GLD), the VanEck Vectors Gold Miners ETF (GDX) and the VelocityShares 3X Long Natural Gas ETN (UGAZ) were notable losers.

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
SPY SPDR S&P 500 ETF Trust 2,720.61 279,066.33 0.98%
IVV iShares Core S&P 500 ETF 2,364.26 148,956.07 1.61%
XLI Industrial Select Sector SPDR Fund 1,223.04 15,076.06 8.83%
IEMG iShares Core MSCI Emerging Markets ETF 1,125.63 45,512.84 2.54%
QQQ PowerShares QQQ Trust 989.15 60,546.65 1.66%
EEM iShares MSCI Emerging Markets ETF 836.79 41,597.46 2.05%
EMB iShares JP Morgan USD Emerging Markets Bond ETF 719.02 13,460.49 5.64%
IEFA iShares Core MSCI EAFE ETF 677.36 44,185.20 1.56%
VOO Vanguard S&P 500 ETF 635.47 86,955.45 0.74%
VEU Vanguard FTSE All-World ex-US ETF 487.89 24,313.00 2.05%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
IWD iShares Russell 1000 Value ETF -1,252.88 40,778.47 -2.98%
XLF Financial Select Sector SPDR Fund -1,036.85 33,227.85 -3.03%
IWM iShares Russell 2000 ETF -558.20 41,808.70 -1.32%
XLP Consumer Staples Select Sector SPDR Fund -423.11 8,331.18 -4.83%
GLD SPDR Gold Trust -299.59 35,169.92 -0.84%
HYG iShares iBoxx $ High Yield Corporate Bond ETF -218.32 17,753.34 -1.21%
GDX VanEck Vectors Gold Miners ETF -218.19 7,317.68 -2.90%
UGAZ VelocityShares 3X Long Natural Gas ETN -163.94 599.38 -21.48%
IWF iShares Russell 1000 Growth ETF -153.22 41,452.70 -0.37%
CIU iShares Intermediate Credit Bond ETF -141.60 7,503.66 -1.85%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 9,206.93 1,971,629.44 0.47%
International Equity 6,992.44 835,638.74 0.84%
U.S. Fixed Income 1,042.41 525,768.02 0.20%
International Fixed Income 1,361.63 60,839.56 2.24%
Commodities -235.75 67,726.73 -0.35%
Currency -0.63 1,244.60 -0.05%
Leveraged -95.74 35,148.68 -0.27%
Inverse 242.08 15,070.56 1.61%
Asset Allocation 50.89 9,079.84 0.56%
Alternatives 113.96 4,234.51 2.69%
Total: 18,678.22 3,526,380.69 0.53%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
HOLD AdvisorShares Sage Core Reserves ETF 8,742 56,531 646.68%
HYGH iShares Interest Rate Hedged High Yield Bond ETF 42,871 256,170 597.53%
HYHG ProShares High Yield-Interest Rate Hedged ETF 39,509 168,907 427.51%
IBDD iShares iBonds Mar 2023 Term Corporate ETF 13,627 51,757 379.81%
USMC Principal U.S. Mega-Cap Multi-Factor Index ETF 3,463 22,781 657.87%
BSJI Guggenheim BulletShares 2018 High Yield Corporate Bond ETF 411,030 1,701,081 413.86%
MOTI VanEck Vectors Morningstar International Moat ETF 23,841 83,402 349.83%
FEU SPDR STOXX Europe 50 ETF 78,523 214,887 273.66%
DMRS DeltaShares S&P 600 Managed Risk ETF 662 1,620 244.64%
DBEU Xtrackers MSCI Europe Hedged Equity ETF 756,272 2,259,186 298.73%

 

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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