Daily ETF Flows: SPY Loses $984 Million

August 07, 2011

Investors yank another $1.84 billion from ETFs on Friday, Aug. 5, the day that ended with an S&P downgrade of U.S. sovereign debt..

Investors pulled another $984 million from the SPDR S&P 500 ETF (NYSEArca: SPY) and $572.4 million from the Energy Select SPDR (NYSEArca: XLE) on Friday, as stocks gyrated with huge volatility in a session marked by rumors of a downgrade of U.S. debt that turned out to be true.

Overall, net outflows from ETFs were almost $1.84 billion, as total assets in U.S.-listed funds fell almost 1.5 percent to almost $1.031 trillion from $1.046 trillion on Thursday, according to data compiled by IndexUniverse.

Much of the decline in ETF assets was due to plummeting markets. The Dow Jones ended the week 5.8 percent lower, including a 512-point drop on Thursday that made possible the index’s biggest weekly drop since October 2008.  ETF assets started the week at nearly $1.1 trillion, meaning that between outflows and market losses they ended about 6.2 percent lower on the week.

While the Dow finished almost 61 points higher on Friday, the S&P 500 and the Nasdaq both declined. The S&P eased 0.06 percent to 1,199.38, while the Nasdaq lost almost 1 percent to end the session at 2,532.41.

The Dow was down sharply at midday as rumors swirled about an impending downgrade from Standard and Poor’s. After the market closed, S&P announced that it had indeed downgraded the long-term U.S. debt from a risk-free rating of “AAA” to a notch lower at “AA+.” The move reflected concern about U.S. indebtedness and an unpredictable political environment. It said its outlook on the U.S. was “negative.”

In the aftermath of Thursday’s sharp selloff, a broad range of equity ETFs suffered redemptions.

The iShares MSCI Hong Kong Index Fund (NYSEArca: EWH) followed SPY and XLE on IndexUniverse’s “Top 10 Redemptions” list, with outflows of $337.7 million.

The iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM) meanwhile lost $154.5 million to redemptions, and the iShares S&P U.S. Preferred Stock Index Fund (NYSEArca: PFF) recorded outflows of almost $154 million.

Creations

While the iShares Russell 2000 Index Fund (NYSEArca: IWM) was the most popular ETF on Friday, investors also looked to safer pockets of the market, even before the downgrade became a reality. IWM gathered more than $628 million in new assets.

For example, the iShares Barclays 1-3 Year Treasury Bond Fund (NYSEArca: SHY) gathered another $160.6 million, or 2 percent of its assets.

Investors also added $151 million to the iShares Silver Trust (NYSEArca: SLV).

A bit harder to fathom were inflows of almost $72 million into the iShares Barclays 20+ Year Treasury Bond Fund (NYSEArca: TLT) The ETF has precisely the kind of long-term debt that the S&P downgrade was focused on. Still, as Barclays said in a research note issued after the downgrade, Treasurys still loomed largedly as a flight-to-quality play, suggesting that for now, little had changed in the U.S. government debt market.

On a percentage basis, creations for a number of ETF stuck out. The SPDR S&P Oil & Gas Explorataion & Production ETF (NYSEArca: XOP), for example, gathered almost $154 million in new money, which amounted to about 20 percent of its assets.

Also, the SPDR S&P Retail ETF (NYSEArca: XRT) hauled in $90 million on Friday, or 17 percent of its assets.

Two leveraged funds also had big creations. The double-exposure ProShares Ultra DJ-UBS Crude Oil ETF (NYSEArca: UCO) had inflows of $86.5 million, or 30 percent of its assets. The triple-exposure Direxion Daily Energy Bull 3x ETF (NYSEArca: ERX) meanwhile had creations of almost $77 million, which amounted to 28 percent of its assets.

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
IWM iShares Russell 2000 628.39 14,306.53 5%
SHY iShares Barclays 1-3 Year Treasury Bond 160.56 8,653.26 2%
XOP SPDR S&P Oil & Gas Exploration & Production 153.89 941.91 20%
SLV iShares Silver 151.01 12,778.38 1%
SSO ProShares Ultra S&P 500 91.37 1,647.94 6%
XRT SPDR S&P Retail 90.00 627.57 17%
UCO ProShares Ultra DJ-UBS Crude Oil 86.47 371.79 30%
MDY SPDR S&P MidCap 400 84.41 9,227.71 1%
ERX Direxion Daily Energy Bull 3x 76.94 355.52 28%
TLT iShares Barclays 20+ Year Treasury Bond 71.98 2,817.54 3%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 -984.86 80,570.22 -1%
XLE Energy Select SPDR -572.42 7,146.72 -7%
EWH iShares MSCI Hong Kong -337.66 1,698.80 -17%
EEM iShares MSCI Emerging Markets -154.52 34,766.74 0%
PFF iShares S&P U.S. Preferred Stock -153.90 7,609.66 -2%
XLY Consumer Discretionary Select SPDR -134.83 2,004.27 -6%
QQQ PowerShares QQQ -129.28 22,330.03 -1%
IJR iShares S&P SmallCap 600 -93.26 6,177.42 -1%
XLF Financial Select SPDR -80.65 5,965.01 -1%
IJH iShares S&P 400 MidCap -80.21 9,156.42 -1%

ETF Daily Flows By Asset Class

Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -2,092.53 438,456.44 -0.48%
International Equity -738.97 267,522.13 -0.28%
U.S. Fixed Income 133.65 151,500.16 0.09%
International Fixed Income 19.14 12,017.52 0.16%
Commodities 183.69 118,826.64 0.15%
Currency 5.00 6,079.74 0.08%
Leveraged 594.38 13,107.63 4.53%
Inverse 90.90 19,100.04 0.48%
Asset Allocation -2.07 862.19 -0.24%
Alternatives -29.49 3,383.52 -0.87%
Total: -1,836.32 1,030,856.00 -0.18%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1-Day Volume % of Average
RTR RevenueShares ADR 16,801 268,334 1597%
PLW PowerShares 1-30 Laddered Treasury Portfolio 35,801 458,929 1282%
SPYG SPDR 500 Growth 24,402 254,144 1042%
EXI iShares S&P Global Industrials 51,685 530,239 1026%
PYZ PowerShares Dynamic Basic Materials Portfolio 30,569 291,042 952%
DBV PowerShares DB G10 Currency Harvest 319,690 2,964,489 927%
EWH iShares MSCI Hong Kong 5,525,179 49,075,583 888%
JKH iShares Morningstar Mid Growth 22,272 185,756 834%
SCHO Schwab Short-Term U. S. Treasury 100,777 836,142 830%
PXE PowerShares Dynamic Energy Exploration & Production Portfolio 46,116 378,308 820%

Top 10 1-Day Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded

Ticker Name 1-Day Performance 1-Day Volume AUM ($, mm)
EWP iShares MSCI Spain 6.52% 2,030,330 180.67
EWI iShares MSCI Italy 5.54% 1,908,957 111.27
VIXY ProShares VIX Short-Term 5.10% 2,202,175 34.58
VIIX VelocityShares VIX Short Term ETN 5.07% 476,789 16.51
EWAC Rydex MSCI All Country Equal Weight 4.99% 1,496 5.55
VXX iPath S&P 500 VIX Short-Term Futures ETN 4.91% 119,918,317 1,262.67
EWD iShares MSCI Sweden 4.88% 1,470,293 437.34
JYF WisdomTree Dreyfus Japanese Yen 4.30% 113,283 6.64
FEZ SPDR Euro STOXX 50 4.13% 118,344 139.32
FPA First Trust Asia Pacific Ex-Japan AlphaDex 4.07% 5,546 2.76

Bottom 10 1-Day Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded

Ticker Name 1-Day Performance 1-Day Volume AUM ($, mm)
AXID iShares MSCI ACWI ex-US Industrials -9.23% 1,800 5.42
GWO ELEMENTS Credit Suisse Global Warming ETN -7.89% 5,603 0.00
GAF SPDR S&P Emerging Middle East & Africa -6.94% 16,679 124.73
AXMT iShares MSCI ACWI ex-US Materials -6.64% 5,114 5.95
SHMO Russell 2000 High Momentum -6.25% 1,100 8.93
RWG Columbia Large-Cap Growth Strategy -6.09% 2,150 9.09
JPP SPDR Russell/Nomura PRIME Japan -5.91% 1,222 15.23
VTWV Vanguard Russell 2000 Value -5.86% 9,176 5.46
URA Global X Uranium -5.61% 797,259 211.04
MLPW UBS E-TRACS Wells Fargo MLP ETN -5.43% 3,100 17.23

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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