July ETF Flows: GLD, IAU Shine Amid Turmoil

August 01, 2011

Gold shined in July as financial markets turned turbulent.

Investors plowed over $13 billion into ETFs last month in a broad move into most asset classes. Gold funds in particular shined amid a slowing economy and a rancorous debate in Washington, D.C. over the U.S. debt ceiling. Assets rose just under 1 percent to $1.108 trillion, as inflows offset sliding stock prices.

Money flowed into equities, fixed income and commodities, in both the U.S. and internationally, with only leverage, inverse and alternative ETF categories recording outflows, according to data compiled by IndexUniverse. Including the more than $58 billion that flowed into ETFs through June, year-to-date flows amounted to about $71 billion.

Two of the world’s biggest gold bullion ETFs together hauled in almost $3.5 billion in new money, a reflection of how much investors are turning to precious metals amid debt-related uncertainties in the U.S. and the eurozone. All the interest in the yellow metal pushed Comex gold futures to a record of $1,637.50 a troy ounce Friday. It pulled back Monday to $1,619 amid signs of a debt-ceiling deal.

The SPDR Gold Shares (NYSEArca: GLD) raked in $2.85 billion in new money last month, lifting its assets to $66.13 billion, while the iShares Gold Trust (NYSEArca: IAU) collected $631.6 million, with its assets now totaling more than $8.2 billion. IndexUniverse Director of Research Dave Nadig and Exchange Traded Fund Report Managing Editor Cory Banks talked about the ins and outs of gold in a podcast this week.

GLD was last month’s second most popular ETF, behind only the SPDR S&P 500 ETF (NYSEArca: SPY), the world’s-biggest exchange-traded fund. SPY, which is often used to equitize assets when investors aren’t sure what to do with capital, hauled in $3.27 billion in July. Its inflows were enough to offset market declines, lifting total money in the fund to $93.33 billion from about $92 billion at the end of June.

The flows into both SPY and GLD were enough to make their sponsor, State Street Global Advisors, the top firm in terms of asset gathering last month. SSgA hauled in $5.80 billion, while Invesco PowerShares, the company behind the PowerShares QQQ Trust (NasdaqGM: QQQ) was No. 2. Fueled by inflows of $1.58 billion into the “Q’s,” Invesco PowerShares pulled in a total of $2.24 billion in new money last month.

In the No. 3 and No. 4 spots were BlackRock, the parent of the world’s-biggest ETF firm, iShares; and Vanguard Group. iShares attracted $1.87 billion, while Vanguard attracted $1.34 billion. Seeing Vanguard behind the other three ETF firms was a departure from past months, when it has routinely been at the top of the asset-gathering list.

Top Gainers ($, Millions)
Ticker Name Issuer July 2011
Flows
July 2011
AUM ($, M)
July 2011
Turnover
SPY SPDR S&P 500 SSgA 3,274.84 93,326.83 536,144.60
GLD SPDR Gold SSgA 2,850.48 66,136.07 52,832.16
QQQ PowerShares QQQ Invesco PowerShares 1,581.07 24,776.93 77,942.86
EWJ iShares MSCI Japan BlackRock 784.43 8,235.29 7,010.72
IAU iShares Gold Trust BlackRock 631.60 8,201.22 2,645.68
DIA SPDR Dow Jones Industrial Average Trust SSgA 586.32 9,994.42 19,470.00
HYG iShares iBoxx $ High Yield Corporate Bond BlackRock 506.32 8,889.66 2,573.65
IVV iShares S&P 500 BlackRock 483.92 27,534.97 8,851.11
MOO Market Vectors Agribusiness Van Eck 434.28 6,022.53 1,730.71
JNK SPDR Barclays Capital High Yield Bond SSgA 407.62 7,330.19 2,521.18

 

July 2011 YTD League Tables
Issuer Net Flows AUM ($, M) % of AUM Turnover
BlackRock 1,869.59 473,345.56 0.39% 381,567.07
SSgA 5,803.67 266,135.71 2.18% 765,018.76
Vanguard 1,340.08 173,888.15 0.77% 39,666.06
Invesco PowerShares 2,236.62 60,937.43 3.67% 89,905.18
ProShares -228.22 26,299.63 -0.87% 96,312.61
Van Eck 845.71 24,376.74 3.47% 22,556.41
Rydex 595.27 9,716.10 6.13% 11,131.79
Barclays Capital -236.22 8,364.88 -2.82% 17,979.26
First Trust 339.07 7,804.60 4.34% 3,098.75
Merrill Lynch -61.38 7,090.35 -0.87% 24,036.51
Direxion -371.33 6,190.62 -6.00% 71,079.86
Charles Schwab 176.78 4,551.74 3.88% 941.39
ETF Securities 166.79 4,324.60 3.86% 1,340.54
US Commodity Funds -422.17 3,775.33 -11.18% 10,073.87
Guggenheim 29.42 3,632.88 0.81% 791.51
PIMCO 132.32 3,335.94 3.97% 643.60
JPMorgan Chase 7.20 2,654.66 0.27% 862.57
Global X 23.94 1,689.87 1.42% 730.19
ALPS 62.28 1,360.46 4.58% 184.97
UBS 19.06 767.80 2.48% 134.15
GreenHaven -29.68 724.12 -4.10% 127.88
Emerging Global Shares 4.84 552.87 0.88% 102.22
RevenueShares -0.44 546.82 -0.08% 54.52
IndexIQ 12.20 468.12 2.61% 92.41
AdvisorShares 40.71 361.52 11.26% 193.08
Credit Suisse 26.39 348.02 7.58% 73.79
Russell 19.45 181.10 10.74% 26.47
Jefferies -2.50 174.52 -1.43% 19.66
Deutsche Bank 95.35 146.66 65.02% 9.19
DBX Strategic Advisors - 135.87 0.00% 5.55
Teucrium -8.70 132.72 -6.56% 165.25
Precidian 113.88 114.03 99.87% 36.24
Goldman Sachs - 80.29 0.00% 10.93
RBS Securities 4.42 79.37 5.57% 36.80
FocusShares - 74.85 0.00% 18.21
Morgan Stanley - 29.82 0.00% 24.90
Columbia -1.70 25.00 -6.78% 3.20
FactorShares - 20.72 0.00% 24.96
UBS - 18.13 0.00% 3.89
Javelin - 14.60 0.00% 1.67
CitiGroup - 10.14 0.00% 5.59
Pax World - 6.65 0.00% 0.84
FaithShares - 3.03 0.00% 0.77
Fidelity - - - 47.51
VelocityShares 113.03 526.08 21.49% 3,092.43
WisdomTree 484.25 13,321.51 3.64% 3,210.52

 

Junk Bounces Back
Two popular high-yield corporate debt ETFs came back into favor last month after suffering major outflows in June, as investors grew skittish about the ramifications of the economic recovery losing steam.

But with analysts saying corporate balance sheets are generally well managed, and that the prospects of mass defaults of corportate debt are rather remote, investors moved back into the junk ETFs the following month.

The iShares iBoxx $ High Yield Corporate Bond Fund (NYSEArca: HYG) collected $506.3 million in July after bleeding $548.2 million in June, while the SPDR Barclays Capital High Yield Bond Fund (NYSEArca: JNK) pulled in $407.6 million after losing $403.5 to redemptions in June.

Japan also remained in favor, as it has since the destructive March 11 earthquake and tsumani. The iShares MSCI Japan Index Fund (NYSEArca: EWJ) gathered $784.4 million in new money, bringing total assets in the fund to $8.24 billion.

Additionally, Van Eck’s Market Vectors Agribusiness continues on an asset-gathering tear. It collected another $434.3 million in assets in July -- after it gathered $474.3 million in June and after it was the single most popular ETF in May, hauling in $1.41 billion in new assets.

Flows By Asset Class
. Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 4,306.25 486,520.34 0.89%
International Equity 2,873.01 295,115.62 0.97%
U.S. Fixed Income 2,056.95 151,700.35 1.36%
International Fixed Income 771.08 11,878.37 6.49%
Commodities 3,534.81 116,894.49 3.02%
Currency 117.06 6,058.51 1.93%
Leveraged - 409.52 13,358.46 -3.07%
Inverse -13.16 22,493.75 -0.06%
Asset Allocation 18.93 931.98 2.03%
Alternatives -55.37 3,387.69 -1.63%
Total: 13,200.03 1,108,339.56 1.19%

 


Asset Losers
Last month’s single most unpopular fund was the iShares Russell 2000 Index Fund (NYSEArca: IWM). The widely traded fund bled $1.74 billion in assets, ending the month with $14.28 billion.

A few energy funds were also on Index Universe’s “Biggest Losers” table, including the Energy Select SPDR ETF (NYSEArca: XLE) and the futures-based United States Oil Fund (NYSEArca: USO). XLE suffered redemptions of $520.7 million, while USO had outflows of $242.4 million.

The biggest decline in assets on a percentage basis was the First Trust NASDAQ-100 Technology ETF (NasdaqGM: QTEC), which lost $289.3 million, or more than half its assets, to redemptions. It ended July with $249.4 in assets.
 

Biggest Losers ($, Millions)
Ticker Name Issuer July 2011
Flows
July 2011
AUM ($, M)
July 2011
Turnover
IWM iShares Russell 2000 BlackRock - 1,753.66 14,284.13 111,877.51
IJH iShares S&P 400 MidCap BlackRock - 632.25 10,443.88 2,489.20
XLE Energy Select SPDR SSgA - 520.71 8,613.36 28,745.98
XLI Industrial Select SPDR SSgA - 398.18 3,341.37 17,062.92
XLY Consumer Discretionary Select SPDR SSgA - 324.61 2,393.01 6,619.93
QTEC First Trust NASDAQ-100-Technology First Trust - 289.34 249.40 447.26
FXI iShares FTSE/Xinhua China 25 BlackRock - 250.88 6,767.54 13,095.41
XLV Health Care Select SPDR SSgA - 244.73 3,828.44 7,095.13
USO United States Oil US Commodity Funds - 242.37 1,220.95 7,067.92
XLB Materials Select SPDR SSgA - 217.77 2,355.81 9,127.95

The lists of the biggest and most liquid funds were unchanged in July, with SSgA’s SPY topping both lists.

SPY still has almost five times as much turnover as IWM, the No. 2 fund on the “Liquidity Mavens” list, and has more than 40 percent more assets than the second-biggest ETF, GLD.

Liquidity Mavens
Ticker Name Issuer July 2011
Flows
July 2011
AUM ($, M)
July 2011
Turnover
SPY SPDR S&P 500 SSgA 3,274.84 93,326.83 536,144.60
IWM iShares Russell 2000 BlackRock - 1,753.66 14,284.13 111,877.51
QQQ PowerShares QQQ Invesco PowerShares 1,581.07 24,776.93 77,942.86
GLD SPDR Gold SSgA 2,850.48 66,136.07 52,832.16
EEM iShares MSCI Emerging Markets BlackRock 194.14 38,381.98 44,977.14
XLE Energy Select SPDR SSgA - 520.71 8,613.36 28,745.98
SLV iShares Silver BlackRock 356.40 12,514.81 28,540.43
XLF Financial Select SPDR SSgA - 184.01 6,843.45 26,905.24
EFA iShares MSCI EAFE BlackRock 181.26 38,957.98 24,325.86
EWZ iShares MSCI Brazil BlackRock 7.34 12,155.73 21,436.15
ETF Giants ($, Millions)
Ticker Name Issuer July 2011
Flows
July 2011
AUM ($, M)
July 2011
Turnover
SPY SPDR S&P 500 SSgA 3,274.84 93,326.83 536,144.60
GLD SPDR Gold SSgA 2,850.48 66,136.07 52,832.16
VWO Vanguard MSCI Emerging Markets Vanguard 292.51 49,858.69 18,812.76
EFA iShares MSCI EAFE BlackRock 181.26 38,957.98 24,325.86
EEM iShares MSCI Emerging Markets BlackRock 194.14 38,381.98 44,977.14
IVV iShares S&P 500 BlackRock 483.92 27,534.97 8,851.11
QQQ PowerShares QQQ Invesco PowerShares 1,581.07 24,776.93 77,942.86
TIP iShares Barclays TIPS Bond BlackRock - 211.49 21,399.13 2,416.65
VTI Vanguard Total Stock Market Vanguard 259.63 19,876.51 3,401.46
IWM iShares Russell 2000 BlackRock - 1,753.66 14,284.13 111,877.51

 

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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