Largest Weekly ETF Outflows Since March

June 29, 2018

A reversal of the “Russell reconstitution trade” led to steep outflows from ETFs this week. According to FactSet, U.S.-listed ETFs registered net outflows of $21.6 billion during the week ending Thursday, June 28.

It was the largest weekly outflow since a $24.1 billion outflow in late-March, and pushed year-to-date ETF inflows down to $129.4 billion.

In a mirror image of last week, a host of iShares Russell ETFs had large outflows―potentially a reflection of investors closing out sophisticated trades linked to the annual Russell reconstitution. Seven of the 10 ETFs with the biggest outflows this week track Russell indices.

But it wasn't just the Russell trade. Even without that, U.S.-listed ETFs were on pace for outflows this week as increasing trade tensions left investors feeling jittery. The S&P 500 briefly fell below 2,700 for the first time in a month this week, and the U.S. 10-year Treasury yield hit a one-month low of 2.83%.

Indeed, the buying in bonds (bond prices and yields move inversely) was one of the few bright spots in this week's flows report. U.S. fixed-income ETFs had net inflows of $3.8 billion during the period, and the five ETFs with the largest inflows were all fixed-income funds.

Those included the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), the Vanguard Mortgage-Backed Securities ETF (VMBS), the iShares U.S. Treasury Bond ETF (GOVT), the Vanguard Short-Term Bond ETF (BSV) and the iShares Core U.S. Aggregate Bond ETF (AGG).

For a full list of this week's top inflows and outflows, see the table below:

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF 1,220.75 32,971.40 3.84%
VMBS Vanguard Mortgage-Backed Securities ETF 759.38 6,692.31 12.80%
GOVT iShares U.S. Treasury Bond ETF 754.39 6,533.89 13.05%
BSV Vanguard Short-Term Bond ETF 734.03 25,527.43 2.96%
AGG iShares Core U.S. Aggregate Bond ETF 402.61 55,312.26 0.73%
XLP Consumer Staples Select Sector SPDR Fund 400.37 8,494.56 4.95%
SMH VanEck Vectors Semiconductor ETF 333.25 1,388.37 31.58%
IJH iShares Core S&P Mid-Cap ETF 271.53 46,931.87 0.58%
VV Vanguard Large-Cap ETF 258.29 12,680.22 2.08%
SHV iShares Short Treasury Bond ETF 253.82 14,903.03 1.73%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -5,009.66 257,359.43 -1.91%
IWF iShares Russell 1000 Growth ETF -4,359.72 41,858.28 -9.43%
IWD iShares Russell 1000 Value ETF -2,523.40 35,912.45 -6.57%
IWP iShares Russell Mid-Cap Growth ETF -1,700.83 8,821.74 -16.16%
IWN iShares Russell 2000 Value ETF -1,573.30 10,507.75 -13.02%
IWM iShares Russell 2000 ETF -1,335.01 46,904.79 -2.77%
IWS iShares Russell Mid-Cap Value ETF -1,225.16 10,777.83 -10.21%
EEM iShares MSCI Emerging Markets ETF -1,045.39 30,474.33 -3.32%
IWO iShares Russell 2000 Growth ETF -884.81 10,911.53 -7.50%
QQQ Invesco QQQ Trust -829.88 65,252.00 -1.26%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -21,176.79 1,986,143.77 -1.07%
International Equity -3,947.66 784,421.91 -0.50%
U.S. Fixed Income 3,766.29 552,276.73 0.68%
International Fixed Income -13.84 61,917.84 -0.02%
Commodities  -470.75 66,135.80 -0.71%
Currency 6.24 1,210.77 0.52%
Leveraged 378.51 34,484.80 1.10%
Inverse -69.81 13,262.07 -0.53%
Asset Allocation -11.18 9,206.77 -0.12%
Alternatives -48.60 4,415.38 -1.10%
Total: -21,587.61 3,513,475.84 -0.61%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
MLPO Credit Suisse S&P MLP Index ETN 3 17 648.68%
RBIN Nationwide Risk-Based International Equity ETF 8 25 326.58%
DBO Invesco DB Oil Fund 1,622,877 5,099,511 314.23%
SLQD iShares 0-5 Year Investment Grade Corporate Bond ETF 276,129 1,305,067 472.63%
VRP Invesco Variable Rate Preferred ETF 428,965 1,380,417 321.80%
ICVT iShares Convertible Bond ETF 94,735 518,174 546.97%
CMBS iShares CMBS ETF 37,529 170,973 455.57%
ADRE Invesco BLDRS Emerging Markets 50 ADR Index Fund 15,697 63,749 406.11%
IHDG WisdomTree International Hedged Quality Dividend Growth Fund 143,201 706,458 493.33%
SPTL SPDR Portfolio Long Term Treasury ETF 230,581 590,683 256.17%

 

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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