Market Dip Pulls ETF Assets Down In July

August 01, 2014

ETFs kept on gathering new inflows in July, but jittery markets pulled assets lower.

U.S.-listed exchange-traded fund assets fell almost 1 percent last month even though investors poured more than $18 billion into ETFs, most of it equities. The happened because the S&P 500 Index fell by 1.3 percent in July on concerns global growth could be hurt by both the Federal Reserve raising interest rates and by geopolitical conflict in Ukraine and in Israel.

A number of inexpensive ETFs from Vanguard—the No. 3 ETF sponsor by assets—were among the most popular strategies, fueling the Malvern, Pa.-based firm's place as the biggest asset gatherer last month. A junk bond fund from iShares was the single least-popular ETF last month—a sign that investors are again growing anxious about the interest-rate outlook.

The market drop pulled total U.S.-listed ETF assets down to $1.847 trillion from $1.860 trillion at the end of June. However, ETF assets are 20 percent higher than at the end of July 2013, and 8.5 percent higher than at the end of last year, according to data compiled by ETF.com. Still, year-to-date asset gathering of $91 billion is shy of the same year-to-date asset haul of $114 billion in the first seven months of 2013.

The takeaway is this: While ETFs continue to grow in popularity as investors and advisors become more familiar with their trio of advantages—namely, cheapness, transparency and tradability—it doesn't look likely that last year's asset-gathering record of more than $188 billion will be eclipsed in 2014. Investors are growing wary about the widening conflict in Ukraine and the prospect of the Federal Reserve tightening ultra-loose monetary policy earlier than markets had been expecting.

July 2014 ETF Flows By Asset Class

  Net Flows ($M) AUM ($M) AUM
U.S. Equity 9,783.42 998,905.11 0.98%
International Equity 6,021.25 451,161.03 1.33%
U.S. Fixed Income -354.59 253,068.60 -0.14%
International Fixed Income 176.24 24,732.29 0.71%
Commodities 1,191.71 66,707.51 1.79%
Currency -54.30 1,649.52 -3.29%
Leveraged 329.75 21,475.50 1.54%
Inverse 776.11 21,560.67 3.60%
Asset Allocation 175.35 4,927.70 3.56%
Alternatives 130.08 3,182.17 4.09%
Totals: 18,175.03 1,847,370.10 0.98%

Asset Class Breakdown

Fixed-income ETFs had net outflows largely because of the sizable $1.7 billion in redemptions from the iShares iBoxx $ High Yield Corporate Bond ETF (HYG | B-69). Those outflows amounted to upward of 8 percent of the fund, which ended the month with $11.7 billion in assets.

On the flip side, commodities as an asset class pulled in almost $2 billion, as some of the bigger funds such as SPDR Gold Shares (GLD | A-100) and the PowerShares DB Commodity Tracking Fund (DBC | C-26) pulled in assets last month.

There's a growing sense that the China-slowdown-related commodities sell-off of the past few years has run its course, and that a reversion to the mean is in the cards. DBC, a futures-based fund that holds a multitude of different commodities, fell 4.75 percent last month, which helped pull year-to-date declines to 1.64 percent.

 


Emerging Markets Inflows

Last month's most popular fund was the SPDR S&P 500 ETF (SPY | A-98). It added $6.8 billion in July, and the world's biggest and most liquid ETF ended the month with total assets under management of almost $173 billion and total turnover in the month of more than $383 billion.

Right behind SPY in the No. 2 spot was the iShares MSCI Emerging Markets ETF (EEM | B-99), which gathered almost $1.9 billion.

In the third slot of the "Top Gainers" list was one of the Vanguard funds, the Vanguard FTSE Emerging Markets ETF (VWO | C-91). The world's biggest ETF canvassing equities in the entire developing world added $1.24 billion in new assets last month.

July 2014 Top Gainers

Ticker Fund Issuer Flows AUM ($M) Turnover
SPY SPDR S&P 500 SSgA 6,801.80 172,780.56 383,234.65
EEM iShares MSCI Emerging Markets BlackRock 1,898.14 42,506.82 40,273.64
VWO Vanguard FTSE Emerging Markets Vanguard 1,238.56 48,363.00 10,009.78
XLY Consumer Discretionary Select SPDR SSgA 829.93 5,810.09 9,824.50
QQQ PowerShares QQQ Invesco PowerShares 777.38 45,030.93 64,782.39
IVV iShares Core S&P 500 BlackRock 766.82 57,749.73 16,633.64
VOO Vanguard S&P 500 Vanguard 677.51 19,740.88 3,471.94
VNQI Vanguard Global ex-U.S. Real Estate Vanguard 635.67 2,164.69 775.15
EWJ iShares MSCI Japan BlackRock 608.75 15,182.62 6,355.22
XLK Technology Select SPDR SSgA 593.19 13,409.74 5,979.84

 

July 2014 Biggest Losers

Ticker Fund Issuer Flows AUM ($M) Turnover
HYG iShares iBoxx $ High Yield Corporate Bond BlackRock -1,690.25 11,721.46 7,757.13
XLI Industrial Select SPDR SSgA -1,397.21 8,785.91 12,078.88
IWM iShares Russell 2000 BlackRock -1,052.18 23,452.08 104,220.50
HYS PIMCO 0-5 Year High Yield Corporate Bond PIMCO -742.99 4,305.30 1,920.56
IYJ iShares U.S. Industrials BlackRock -727.89 959.21 2,339.92
XLE Energy Select SPDR SSgA -727.30 11,526.46 18,758.27
EZU iShares MSCI EMU BlackRock -701.89 10,042.98 4,673.72
XLP Consumer Staples Select SPDR SSgA -664.94 5,752.45 7,062.19
XLF Financial Select SPDR SSgA -635.90 17,745.99 13,883.71
DXJ WisdomTree Japan Hedged Equity WisdomTree -625.03 10,116.21 4,414.23

 


 

July 2014 League Table

Issuer Net Flows AUM ($M) % of AUM Turnover
BlackRock 3,125.40 709,360.34 0.44% 374,216.16
SSgA 4,479.57 399,771.54 1.12% 555,539.65
Vanguard 5,434.12 383,756.83 1.42% 50,753.79
Invesco PowerShares 1,772.33 102,475.47 1.73% 75,245.95
WisdomTree -175.42 35,101.65 -0.50% 9,353.36
ProShares 656.54 27,515.80 2.39% 61,370.25
First Trust 557.38 27,495.41 2.03% 6,775.95
Guggenheim 498.27 27,149.15 1.84% 5,298.82
Van Eck -523.46 23,698.85 -2.21% 42,470.46
Charles Schwab 701.02 21,779.77 3.22% 2,297.38
PIMCO -570.89 14,375.07 -3.97% 3,235.97
ALPS 168.65 10,893.77 1.55% 1,413.82
Barclays Capital 269.73 8,774.36 3.07% 22,371.64
Northern Trust 170.23 8,444.56 2.02% 415.06
Direxion 288.81 7,734.91 3.73% 44,668.35
JPMorgan - 6,403.26 0.00% 530.03
UBS 177.53 4,797.06 3.70% 1,032.37
Global X 226.71 4,202.77 5.39% 1,054.39
ETF Securities 11.57 3,071.31 0.38% 300.19
US Commodity Funds 316.02 2,324.21 13.60% 6,215.13
Deutsche Bank 213.87 2,041.97 10.47% 475.57
Emerging Global Shares 20.30 1,832.45 1.11% 224.42
Credit Suisse 33.01 1,823.36 1.81% 185.30
VelocityShares 75.52 1,744.17 4.33% 11,487.65
AdvisorShares -162.13 1,723.46 -9.41% 817.90
Exchange Traded Concepts 78.38 1,588.95 4.93% 120.60
Fidelity 95.77 1,532.86 6.25% 506.29
Merrill Lynch 17.71 1,295.04 1.37% 151.21
IndexIQ 39.88 1,119.75 3.56% 159.00
RevenueShares 22.89 817.55 2.80% 78.21
RBS Securities 21.21 654.15 3.24% 93.25
Cambria 17.04 365.01 4.67% 66.71
GreenHaven 6.93 350.04 1.98% 45.45
Goldman Sachs - 252.49 0.00% 12.44
Highland Capital Management 5.95 203.84 2.92% 26.62
Arrow Investment Advisors 29.12 182.82 15.93% 48.03
Teucrium 20.58 115.88 17.76% 135.96
Precidian - 90.73 0.00% 77.46
KraneShares 3.78 87.88 4.30% 63.26
Morgan Stanley - 68.03 0.00% 6.66
CitiGroup - 63.30 0.00% 7.82
Horizons 2.23 39.65 5.63% 120.06
Columbia - 32.54 0.00% 10.37
Huntington Strategy Shares -1.81 24.97 -7.23% 4.45
Factor Advisor 0.66 9.45 7.02% 9.05
Russell - 9.16 0.00% 38.11
FFCM -3.94 8.26 -47.65% 12.96
LocalShares - 7.05 0.00% 1.02

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