2 Factors Fueled $24B Weekly ETF Outflows

March 23, 2018

One week after taking in a whopping $44.7 billion, ETF flows sharply reversed course, ending the latest week with a net outflow of $24.1 billion, according to data from FactSet. Year-to-date inflows are now down to $73.3 billion.

The wild swings in flows were likely due to rebalancing, as fund managers orchestrated large inflows and outflows to wash out low-basis stock positions and potential capital gains. Almost $20 billion of this week's outflows came on Monday alone.

The iShares Select Dividend ETF (DVY), the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Dividend Appreciation ETF (VIG) were three notable ETFs exhibiting this large inflow/outflow pattern over the past two weeks.

Another noteworthy fund to make an appearance on this week's outflows list was the iShares Core S&P 500 ETF (IVV). IVV had net redemptions of $6.6 billion—a rare occurrence for a fund that's steadily accumulated assets and that became the world's second-largest ETF last year.

The underlying S&P 500 plunged by more than 4% this week as President Trump proposed tariffs on $60 billion worth of Chinese goods.

Still, year-to-date inflows for IVV remain in positive territory to the tune of $5.6 billion, which compares well to the $10.1 billion worth of outflows seen in the rival SPDR S&P 500 ETF Trust (SPY) and even the $5.2 billion worth of inflows seen in the Vanguard S&P 500 ETF (VOO).

The iShares Russell 2000 ETF (IWM) topped the weekly inflows charts, with $1.4 billion in net creations. Small-caps handily outperformed large-caps this week as trade-war concerns weigh on the latter.

The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), the SPDR Gold Trust (GLD) and the Utilities Select Sector SPDR Fund (XLU) were a few other ETFs that saw interest this week, as a drop in interest rates made them more attractive.

The U.S. 10-year Treasury yield briefly topped 2.93% after Wednesday's Federal Reserve decision to hike interest rates, but then retreated aggressively to last trade at 2.83% as stock markets plunged.

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
IWM iShares Russell 2000 ETF 1,402.74 44,403.38 3.26%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 779.13 32,053.94 2.49%
GLD SPDR Gold Trust 522.38 36,125.14 1.47%
XLU Utilities Select Sector SPDR Fund 468.41 7,081.02 7.08%
IEFA iShares Core MSCI EAFE ETF 359.78 56,184.43 0.64%
SHV iShares Short Treasury Bond ETF 319.81 10,199.51 3.24%
IYR iShares U.S. Real Estate ETF 304.35 3,615.38 9.19%
XRT SPDR S&P Retail ETF 242.97 555.49 77.74%
AGG iShares Core U.S. Aggregate Bond ETF 234.25 54,212.83 0.43%
EWZ iShares MSCI Brazil ETF 232.30 8,975.33 2.66%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
IVV iShares Core S&P 500 ETF -6,594.81 149,583.10 -4.22%
DVY iShares Select Dividend ETF -3,578.68 16,946.11 -17.44%
SPY SPDR S&P 500 ETF Trust -2,389.70 269,928.32 -0.88%
SCHD Schwab U.S. Dividend Equity ETF -2,306.37 7,311.48 -23.98%
QQQ PowerShares QQQ Trust -1,973.80 63,727.98 -3.00%
VIG Vanguard Dividend Appreciation ETF -1,864.89 27,584.91 -6.33%
DIA SPDR Dow Jones Industrial Average ETF Trust -1,269.64 21,317.67 -5.62%
IJR iShares Core S&P Small Cap ETF -1,025.50 37,623.74 -2.65%
VB Vanguard Small-Cap ETF -882.44 22,378.70 -3.79%
VUG Vanguard Growth ETF -778.65 33,346.58 -2.28%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -27,710.15 1,958,782.46 -1.41%
International Equity 493.20 850,389.59 0.06%
U.S. Fixed Income 1,604.46 520,623.33 0.31%
International Fixed Income 152.16 62,977.30 0.24%
Commodities  713.30 69,779.26 1.02%
Currency -11.80 1,332.52 -0.89%
Leveraged 683.57 36,642.60 1.87%
Inverse 1.24 13,672.47 0.01%
Asset Allocation -69.16 8,940.02 -0.77%
Alternatives 8.36 4,328.22 0.19%
Total: -24,134.84 3,527,467.79 -0.68%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
KRMA Global X Conscious Companies ETF 7,407 15,597 210.57%
RLY SPDR SSgA Multi-Asset Real Return ETF 29,883 61,575 206.06%
PZD PowerShares Cleantech Portfolio 13,596 30,898 227.26%
GEX VanEck Vectors Global Alternative Energy ETF 4,483 9,659 215.43%
CCOR Cambria Core Equity ETF 18,387 60,328 328.10%
RVNU Xtrackers Municipal Infrastructure Revenue Bond ETF 14,350 22,759 158.59%
DWIN PowerShares DWA Tactical Multi-Asset Income Portfolio 30,231 54,787 181.23%
DJCI ETRACS Bloomberg Commodity Index Total Return ETN 3,709 5,129 138.30%
DBO PowerShares DB Oil Fund 1,411,857 1,695,454 120.09%
FLQE Franklin LibertyQ Emerging Markets ETF 12,919 17,232 133.38%

 

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.

 

Find your next ETF

CLEAR FILTER