June ETF Flows: Investors Pour Into GLD

July 02, 2010

Economic worries remained on center stage in the world of ETFs in June, as SSgA’s gold fund “GLD” continued raking in assets.

State Street Global Advisors’ SPDR S&P 500 ETF (NYSEArca: SPY) pulled in more than $3 billion in net new money in June, topping all U.S. ETFs, according to data compiled by IndexUniverse.com. Despite the positive flows, SPY's total assets under management fell $1 billion to end the month at $69.5 billion as negative market movement overwhelmed the new inflows.

SSgA's SPDR Gold Trust (NYSEArca: GLD) took the number two slot for asset gathering in June, pulling in $2 billion as investors sought out a safe haven for their assets. Gold prices rose in June, so GLD's total assets increased by $4.2 billion to end the month at $52.8 billion.

U.S. stocks have fallen more than 16 percent since their high in April and ended the second quarter with losses of more than 10 percent, putting the market in correction mode. Traders have grappled with signs of weakness in the eurozone, in the U.S. real estate market and even in China. The “Flash Crash” on May 6, when stocks whipsawed down nearly 10 percent in 30 minutes before recovering, also rattled investors. Total assets invested in U.S. ETFs dropped in June by about $10 billion to $788.6 billion.

A list of the biggest asset-losing ETFs shows that the rally of 2009 is, at the very least, on hold for now. The Financial Select SPDR ETF (NYSEArca: XLF) saw outlflows of $636 million, the iShares MSCI Brazil Index Fund (NYSEArca: EWZ) lost $521 million and the Energy Select Sector SPDR (NYSEArca: XLE) lost $472 million.

 

June Top Gainers and Biggest Losers

Top Gainers ($, Millions)
Ticker Name Issuer June 2010 Flows AUM at 6/30/2010 June 2010 Turnover
SPY SPDR S&P 500 SSgA 3,358.16 69,544.03 619,059.49
GLD SPDR Gold SSgA 2,092.11 52,792.01 39,405.52
EEM iShares MSCI Emerging Markets BlackRock 1,639.10 34,374.48 72,093.98
VWO Vanguard Emerging Markets Vanguard 794.84 24,725.90 14,656.36
MDY SPDR S&P MidCap 400 SSgA 574.77 8,630.61 15,242.90
AGG iShares Barclays Aggregate Bond BlackRock 560.24 12,220.01 1,776.11
TLT iShares Barclays 20+ Year Treasury Bond BlackRock 553.20 3,177.07 12,911.17
VTI Vanguard Total Stock Market Vanguard 540.43 13,386.35 2,773.63
FAS Direxion Daily Financial Bull 3x Direxion 469.60 1,608.50 27,448.21
LQD iBoxx $ Investment Grade Corporate Bond BlackRock 435.32 13,162.47

1,818.67

Biggest Losers ($, Millions)
Ticker Name Issuer June 2010 Flows AUM at 6/30/2010 June 2010 Turnover
XLF Financial Select Sector SPDR SSgA -635.49 5,928.12 32,487.05
EWZ iShares MSCI Brazil BlackRock -521.36 8,488.84 28,191.27
XLE Energy Select Sector SPDR SSgA -471.60 5,264.86 26,121.44
XRT SPDR S&P Retail SSgA -447.37 675.49 15,235.94
EFA iShares MSCI EAFE BlackRock -410.93 30,511.60 30,869.39
XLY Consumer Discretionary Select Sector SPDR SSgA -387.95 1,386.17 7,222.71
IWO iShares Russell 2000 Growth BlackRock -325.62 2,935.83 4,033.01
EWJ iShares MSCI Japan BlackRock -261.38 4,591.93 4,221.28
IWN iShares Russell 2000 Value BlackRock -211.76 3,657.99 3,277.19
EWH iShares MSCI Hong Kong BlackRock -198.12 1,423.13 2,242.61

 


GLD Wins, SPY Loses In First Half Of 2010

In the first half of 2010 GLD led all funds in net inflows, pulling in $7.3 billion, as investors sought out gold for its safe-haven status in a period of renewed uncertainty and volatility. On the flip side, SPY saw $9.4 billion in net outflows.

To be sure, flows data on SSgA’s “SPY” should be digested with a critical eye because SPY is by far the most widely used ETF trading vehicle. Its turnover in June, for example, stood atop the liquidity list at $619 billion, 5.5 times more than the second-most liquid ETF in June, the small-cap iShares Russell 2000 ETF (NYSEArca: IWM).

On a six-month basis, SPY led all ETFs on the liquidity front, with a turnover of $3.41 trillion – again about 5.5 times more than the still highly liquid iShares small-caps ETF.

 

First Half Top Gainers and Biggest Losers

Top Gainers ($, Millions)
Ticker Name Issuer 6 Month Flows AUM at 6/30/2010 6 Month Turnover
GLD SPDR Gold SSgA 7,299.60 52,792.01 250,310.02
VWO Vanguard Emerging Markets Vanguard 6,984.76 24,725.90 77,484.01
SHV iShares Barclays Short Treasury Bond BlackRock 2,412.54 4,165.28 7,163.15
TBT ProShares UltraShort 20+ Year Treasury ProShares 1,569.35 4,542.70 48,663.58
CSJ Barclays 1-3 Year Credit Bond BlackRock 1,566.00 6,462.14 6,291.58
BND Vanguard Total Bond Market Vanguard 1,464.03 7,972.59 7,191.08
BSV Vanguard Short-Term Bond Vanguard 1,386.26 5,150.78 5,156.76
TIP iShares Barclays TIPS Bond BlackRock 1,383.92 20,456.36 14,598.96
VIG Vanguard Dividend Appreciation Vanguard 1,205.12 2,877.00 2,785.41
GDX Market Vectors Gold Miners Van Eck 1,053.38 7,399.27 81,917.61

Biggest Losers ($, Millions)
Ticker Name Issuer 6 Month Flows AUM at 6/30/2010 6 Month Turnover
SPY SPDR S&P 500 SSgA -9,640.84 69,544.03 3,406,548.44
UUP PowerShares DB US Dollar Index Bullish Invesco PowerShares -2,174.72 1,181.55 15,319.37
FXI iShares FTSE/Xinhua China 25 BlackRock -1,574.86 7,925.45 157,357.63
EEM iShares MSCI Emerging Markets BlackRock -1,345.40 34,374.48 430,724.84
EWZ iShares MSCI Brazil BlackRock -925.93 8,488.84 188,809.05
UNG United States Natural Gas US Commodities Funds -802.97 2,792.78 31,159.37
DIA Dow Diamonds SSgA -802.06 7,738.56 165,959.69
IVW iShares S&P 500 Growth BlackRock -746.70 4,610.07 7,156.34
ILF iShares S&P Latin America 40 BlackRock -691.52 2,118.08 16,524.32
XLF Financial Select Sector SPDR SSgA -612.77 5,928.12 226,331.22

 

EEM vs. VWO

One of the more closely watched stories in the world of ETFs is the mano-a-mano battle for assets between the two biggest U.S. emerging markets ETFs, the iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM) and Vanguard’s MSCI Emerging Markets ETF (NYSEArca: VWO). VWO has been winning that battle for most of the past year, attracting investors with its lower expense ratio and better performance. But things changed course in June, as EEM hauled in $1.6 billion compared with $794 million for VWO, bringing total assets after market movement to $34.4 billion for EEM and $24.7 billion for VWO.


While EEM’s popularity among traders as a short-term trading vehicle is well known in the world of ETFs, VWO has two important advantages over EEM: it has an annual expense ratio of 0.27 percent versus 0.72 percent for EEM; and, as Matt Hougan pointed out in his blog yesterday, VWO’s replication strategy has enabled it to deliver a 3.5 percent performance edge over EEM in the past year.

 

Biggest U.S. ETFs

ETF Giants ($, Millions)
Ticker Name Issuer June 2010 Flows AUM at 6/30/2010 June 2010 Turnover
SPY SPDR S&P 500 SSgA 3,358.16 69,544.03 619,059.49
GLD SPDR Gold SSgA 2,092.11 52,792.01 39,405.52
EEM iShares MSCI Emerging Markets BlackRock 1,639.10 34,374.48 72,093.98
EFA iShares MSCI EAFE BlackRock -410.93 30,511.60 30,869.39
VWO Vanguard Emerging Markets Vanguard 794.84 24,725.90 14,656.36
IVV iShares S&P 500 BlackRock 254.04 20,529.76 12,724.46
TIP iShares Barclays TIPS Bond BlackRock 95.40 20,456.36 1,766.64
QQQQ PowerShares QQQ Invesco PowerShares 206.25 17,410.57 93,543.47
VTI Vanguard Total Stock Market Vanguard 540.43 13,386.35 2,773.63
LQD iBoxx $ Investment Grade Corporate Bond BlackRock 435.32 13,162.47 1,818.67
           

 

Top Three ETF Firms

The three biggest ETF firms remained solidly in their respective places last month. All brought in new money in June, yet all three also saw total assets under management decline with the receding tide of financial markets.

BlackRock, which owns the iShares ETF franchise, added $3.74 billion in new money in June, but its total asset base shrank to almost $362 billion from $368 billion in May.

The No. 2 firm, SSgA, added $5.3 billion in new investor money – about 40 percent in its gold fund GLD alone – but total assets for the firm fell to $193 billion from $195 billion in May.

Vanguard, the low-cost arriviste that recently made a splashy announcement about broadening its push into the world of ETFs, added nearly $2.8 billion in new investor money in June, while its asset based dipped only about $250 million to $102.7 billion.

 

Most Widely Traded U.S. ETFs

Liquidity Mavens
Ticker Name Issuer June 2010 Flows AUM at 6/30/2010 June 2010 Turnover
SPY SPDR S&P 500 SSgA 3,358.16 69,544.03 619,059.49
IWM iShares Russell 2000 BlackRock -187.50 12,196.38 112,749.11
QQQQ PowerShares QQQ Invesco PowerShares 206.25 17,410.57 93,543.47
EEM iShares MSCI Emerging Markets BlackRock 1,639.10 34,374.48 72,093.98
GLD SPDR Gold SSgA 2,092.11 52,792.01 39,405.52
SDS ProShares UltraShort S&P500 ProShares -174.63 3,694.45 37,110.75
XLF Financial Select Sector SPDR SSgA -635.49 5,928.12 32,487.05
EFA iShares MSCI EAFE BlackRock -410.93 30,511.60 30,869.39
DIA Dow Diamonds SSgA -33.16 7,738.56 28,638.63
EWZ iShares MSCI Brazil BlackRock -521.36 8,488.84 28,191.27

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