Emerging Markets & Bond ETFs Bolster Weekly Inflows

February 23, 2018

Investors tiptoed back into ETFs as volatility cooled off this week. The Cboe Volatility Index (VIX) briefly dropped below 17 on Friday, the lowest point since Feb. 2, and less than half the level of the recent highs.

Still, even as the U.S. stock market stabilized, investors remained cautious. They pulled out $2.4 billion from U.S. equity ETFs as concerns about interest rates and inflation lingered.

As has often been the case this month, the SPDR S&P 500 ETF Trust (SPY) was the biggest flows loser this week, with outflows of $1.3 billion.

On the other hand, where investors did add money was international equity ETFs. That segment picked up $4.5 billion of new money. The iShares Core MSCI Emerging Markets ETF (IEMG), in particular, was popular, with inflows of $1.3 billion.

Also seeing investor interest this week were fixed-income ETFs. U.S. fixed-income ETFs had inflows of $2 billion, while international fixed-income ETFs had inflows of $570 million. That’s despite the fact that, all throughout the week, investors fretted about rising interest rates and whether the U.S. 10-year Treasury yield would top 3%.

The yield didn’t make it quite that high. It peaked around 2.95% on Wednesday before falling to as low as 2.86% on Friday.

The SPDR Bloomberg Barclays High Yield Bond ETF (JNK) was this week’s biggest beneficiary of bargain buying in the fixed-income space, with inflows of nearly $500 million.

Adding it all up, U.S.-listed ETFs had net inflows of $4.9 billion during the week ending Thursday, Feb. 22, according to FactSet. That brings year-to-date inflows to $50.1 billion.

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
IEMG iShares Core MSCI Emerging Markets ETF 1,306.17 49,086.73 2.73%
VOO Vanguard S&P 500 ETF 504.10 88,269.34 0.57%
JNK SPDR Bloomberg Barclays High Yield Bond ETF 487.80 9,142.95 5.64%
VEA Vanguard FTSE Developed Markets ETF 475.02 70,587.49 0.68%
IEFA iShares Core MSCI EAFE ETF 374.07 51,741.50 0.73%
XLP Consumer Staples Select Sector SPDR Fund 301.00 7,378.05 4.25%
SHV iShares Short Treasury Bond ETF 286.65 9,415.68 3.14%
GLD SPDR Gold Trust 282.23 35,402.19 0.80%
XLRE Real Estate Select Sector SPDR Fund 252.74 2,461.77 11.44%
EWJ iShares MSCI Japan ETF 247.09 22,481.86 1.11%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -1,262.81 270,089.58 -0.47%
DIA SPDR Dow Jones Industrial Average ETF Trust -937.94 22,334.18 -4.03%
IWM iShares Russell 2000 ETF -742.73 40,194.69 -1.81%
XLE Energy Select Sector SPDR Fund -528.41 17,181.98 -2.98%
XLV Health Care Select Sector SPDR Fund -418.71 15,666.36 -2.60%
XLI Industrial Select Sector SPDR Fund -337.86 12,881.24 -2.56%
XLK Technology Select Sector SPDR Fund -322.19 19,561.66 -1.62%
DXJ WisdomTree Japan Hedged Equity Fund -315.51 7,618.49 -3.98%
XLF Financial Select Sector SPDR Fund -297.13 33,040.78 -0.89%
MDY SPDR S&P Midcap 400 ETF Trust -224.55 20,392.93 -1.09%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -2,420.83 1,929,866.36 -0.13%
International Equity 4,483.96 849,428.63 0.53%
U.S. Fixed Income 1,982.31 518,080.70 0.38%
International Fixed Income 568.50 62,568.72 0.91%
Commodities 450.00 69,107.26 0.65%
Currency 7.92 1,366.77 0.58%
Leveraged -254.62 35,750.56 -0.71%
Inverse 131.27 13,788.22 0.95%
Asset Allocation 6.04 8,891.95 0.07%
Alternatives -25.45 4,525.67 -0.56%
Total: 4,929.10 3,493,374.84 0.14%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
WBIE WBI Tactical LCGD Shares 45,209 370,806 820.20%
WBIA WBI Tactical SMGD Shares 29,506 245,796 833.04%
WBID WBI Tactical SMQ Shares 37,984 312,616 823.03%
WBIB WBI Tactical SMV Shares 28,091 223,113 794.26%
WBIL WBI Tactical LCQ Shares 25,398 199,959 787.30%
WBIC WBI Tactical SMY Shares 16,483 116,840 708.85%
WBIF WBI Tactical LCV Shares 20,219 141,529 699.98%
WBII WBI Tactical Income Shares 37,341 242,104 648.37%
IGN iShares North American Tech-Multimedia Networking ETF 18,241 104,328 571.93%
WBIH WBI Tactical High Income Shares 49,011 226,478 462.10%

 

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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