July ETF Inflows Slow 2021’s Pace

The U.S. ETF industry crossed the $500 billion mark, but with shivers due to inflation and the delta variant.

ETF.com
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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

Flows into U.S.-based ETFs reached their lowest monthly level since last October, as dual fears of inflation and the COVID-19 Delta variant sending scores of unvaccinated Americans to the hospital tamped the industry’s animal spirits through the first half of 2021.

While not exactly a slouch of a month, figures from ETF.com data provider FactSet show the industry had net inflows of $48.4 billion in July, enough to pierce the $500 billion inflow mark at the very end of the month. Investors have now put a net $520.3 billion into exchange-traded products year-to-date, a figure almost 70% higher than the net flows posted in July of last year.

Major Asset Classes Slow

The drop was most clear in U.S. equities, which fell from $37.7 billion in June to roughly $19 billion in July as investors sought risk-off positions, considered long-term macroeconomic growth rates and readjusted portfolios for the back half of the year.

While less pronounced, international equity inflows slowed from June by just under $7 billion during the two months to $12.9 billion in July, and U.S. fixed income fund flows declined by $2.7 billion from June for a net gain of $12.7 billion in the same time period.

The Vanguard S&P 500 ETF (VOO) was No. 1 on our July inflows chart, ending the month with more than $5 billion flows, further solidifying its status as the largest fund by inflows this year. Closely following VOO was the Vanguard Short-Term Bond ETF (BSV), with inflows of $4.9 billion.

Commodities extended its outflow streak from June, driven in part by the slip in oil prices midway through July connected to worries that the Delta variant’s spread would curb demand for travel.

Quality, Safety Cycles In

The slowdown in aggressive equities was paired with flows into a handful of more defensive positions. The iShares TIPS Bond ETF (TIP) gained $2.6 billion in the month after the headline inflation prints left some inflation hawks shaken.

The iShares MSCI USA Quality Factor ETF (QUAL) also made an appearance in the top 10 gainers of the month, adding just under $1.6 billion in assets after it was shunned by traders with animal spirits. QUAL had net outflows of approximately $1.2 billion year-to-date at the end of July.

Real Estate Funds Struggle

The iShares U.S. Real Estate ETF (IYR) was by far the biggest loser in the month after investors pulled nearly $2.2 billion from the fund. Half of that amount was pulled in the first week of July alone as fears of a broader price bubble emerged among traders and took the fund to a net outflow of almost $1 billion year-to-date.

In comparison, the Vanguard Real Estate Fund (VNQ) recorded a slight gain with $316 million in inflows for the month. However, it has posted net inflows of $4.4 billion year-to-date and likely took some market share from IYR due to it having similar exposures but being cheaper to the tune of 29 basis points.

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

 

Top Gainers (July 2021)

TickerNameIssuerNet Flows ($,mm)AUM ($M)% of AUMYTD 2021 Net Flows($,M)
VOOVanguard S&P 500 ETFVanguard5,040.77243,523.212.07%31,638.06
BSVVanguard Short-Term Bond ETFVanguard4,921.2839,513.2412.45%10,106.66
VTIVanguard Total Stock Market ETFVanguard3,245.52260,603.971.25%23,405.99
XLVHealth Care Select Sector SPDR FundState Street Global Advisors2,964.4232,192.229.21%2,497.36
TIPiShares TIPS Bond ETFBlackrock2,624.1031,509.218.33%4,462.65
IEFAiShares Core MSCI EAFE ETFBlackrock2,354.1399,199.102.37%7,720.46
VEAVanguard FTSE Developed Markets ETFVanguard1,945.40103,504.831.88%7,673.67
ESGUiShares ESG Aware MSCI USA ETFBlackrock1,933.5620,745.469.32%4,809.62
VTVanguard Total World Stock ETFVanguard1,901.0623,886.017.96%4,694.63
QUALiShares MSCI USA Quality Factor ETFBlackrock1,581.4023,883.006.62%-1,165.01

 

Top Gainers (Year-to-Date)

TickerNameIssuerNet Flows ($,mm)AUM ($M)% of AUMJuly 2021 Net Flows($,M)
VOOVanguard S&P 500 ETFVanguard31,638.06243,523.2112.99%5,040.77
VTIVanguard Total Stock Market ETFVanguard23,405.99260,603.978.98%3,245.52
IVViShares Core S&P 500 ETFBlackrock14,030.66295,651.904.75%1,517.47
BNDVanguard Total Bond Market ETFVanguard13,146.8480,374.1016.36%1,017.80
VTVVanguard Value ETFVanguard10,705.7082,782.0512.93%505.46
BSVVanguard Short-Term Bond ETFVanguard10,106.6639,513.2425.58%4,921.28
IEMGiShares Core MSCI Emerging Markets ETFBlackrock9,733.0479,225.4112.29%506.76
IUSBiShares Core Total USD Bond Market ETFBlackrock9,168.1415,177.0360.41%558.80
XLFFinancial Select Sector SPDR FundState Street Global Advisors8,171.5339,747.1120.56%-703.50
BNDXVanguard Total International Bond ETFVanguard7,827.7244,697.0817.51%1,323.44

 

Biggest Losers (July 2021)

TickerNameIssuerNet Flows ($,mm)AUM ($M)% of AUMYTD 2021 Net Flows($,M)
IYRiShares U.S. Real Estate ETFBlackrock-2,181.595,513.25-39.57%-989.61
IWMiShares Russell 2000 ETFBlackrock-1,795.5165,458.72-2.74%-619.54
GOVTiShares U.S. Treasury Bond ETFBlackrock-1,765.5315,511.07-11.38%1,139.92
IGSBiShares 1-5 Year Investment Grade Corporate Bond ETFBlackrock-1,466.5425,216.31-5.82%3,010.60
IJRiShares Core S&P Small-Cap ETFBlackrock-1,132.4468,024.70-1.66%1,263.65
ARKKARK Innovation ETFARK-1,029.2222,669.85-4.54%6,612.71
IJSiShares S&P Small-Cap 600 Value ETFBlackrock-979.948,697.57-11.27%817.45
SPYSPDR S&P 500 ETF TrustState Street Global Advisors-977.15382,335.06-0.26%-2,692.18
XLBMaterials Select Sector SPDR FundState Street Global Advisors-949.918,691.27-10.93%2,749.03
XLYConsumer Discretionary Select Sector SPDR FundState Street Global Advisors-934.6919,674.12-4.75%-1,102.92

 

Biggest Losers (Year-to-Date)

TickerNameIssuerNet Flows ($,mm)AUM ($M)% of AUMJuly 2021 Net Flows($,M)
LQDiShares iBoxx USD Investment Grade Corporate Bond ETFBlackrock-13,423.0240,774.25-32.92%14.83
USMViShares MSCI USA Min Vol Factor ETFBlackrock-8,177.9028,413.64-28.78%-82.01
GLDSPDR Gold TrustState Street Global Advisors-7,717.8959,561.02-12.96%-812.80
HYGiShares iBoxx USD High Yield Corporate Bond ETFBlackrock-5,950.6619,969.43-29.80%-340.78
JNKSPDR Bloomberg Barclays High Yield Bond ETFState Street Global Advisors-3,538.379,059.60-39.06%-701.86
SHViShares Short Treasury Bond ETFBlackrock-3,379.4514,447.21-23.39%-195.56
SPYSPDR S&P 500 ETF TrustState Street Global Advisors-2,692.18382,335.06-0.70%-977.15
EFAViShares MSCI EAFE Min Vol Factor ETFBlackrock-2,432.448,647.20-28.13%-182.48
IWFiShares Russell 1000 Growth ETFBlackrock-2,421.4872,587.88-3.34%729.85
IHIiShares U.S. Medical Devices ETFBlackrock-2,216.118,130.01-27.26%44.09

 

Asset Classes (July 2021)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity18,972.733,883,960.890.49%
International Equity12,871.871,273,529.721.01%
U.S. Fixed Income12,689.171,063,219.681.19%
International Fixed Income3,467.34146,880.262.36%
Commodities-875.68140,943.68-0.62%
Currency30.311,967.991.54%
Leveraged165.5861,754.480.27%
Inverse302.5511,538.992.62%
Asset Allocation815.0917,293.894.71%
Alternatives-30.406,435.59-0.47%
Total:48,408.566,607,525.170.73%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity238,259.663,883,960.896.13%
International Equity150,983.961,273,529.7211.86%
U.S. Fixed Income97,439.791,063,219.689.16%
International Fixed Income24,760.86146,880.2616.86%
Commodities-1,387.46140,943.68-0.98%
Currency85.811,967.994.36%
Leveraged923.7461,754.481.50%
Inverse4,253.6711,538.9936.86%
Asset Allocation2,884.2717,293.8916.68%
Alternatives2,081.356,435.5932.34%
Total:520,285.656,607,525.177.87%

 

July 2021 ETF Issuer League Table

IssuerNet Flows ($,M)AUM ($,M)% of AUMYTD 2021 Net Flows($,M)
Blackrock6,226.632,311,537.390.27%100,476.86
Vanguard32,166.211,892,021.931.70%205,997.90
State Street Global Advisors-333.11992,240.64-0.03%39,385.64
Invesco-1,388.21364,916.19-0.38%29,995.72
Charles Schwab3,459.17249,814.701.38%26,021.18
First Trust1,103.02137,020.150.81%15,285.00
JPMorgan Chase1,537.9767,074.552.29%18,380.65
VanEck173.9262,088.290.28%7,728.31
ProShares273.8958,783.840.47%4,695.21
ARK-1,742.1845,225.15-3.85%14,675.32
WisdomTree456.0745,170.021.01%2,907.06
Mirae Asset Global Investments Co., Ltd.1,325.9835,712.313.71%13,295.95
Dimensional Holdings359.6730,832.041.17%1,723.98
Fidelity380.2130,672.031.24%3,406.61
Allianz64.9626,954.470.24%913.02
Direxion238.3125,357.680.94%1,714.55
Goldman Sachs409.2424,596.111.66%64.33
Deutsche Bank-137.9822,172.51-0.62%740.43
Northern Trust204.6618,558.311.10%2,645.15
CICC1,222.3510,631.2511.50%6,470.69
Franklin Templeton-216.649,294.66-2.33%140.36
SS&C40.409,181.030.44%283.70
Pacer Advisors497.758,086.026.16%1,491.66
American Century Investments360.387,494.304.81%3,005.38
ETFMG-47.217,363.93-0.64%1,353.78
Exchange Traded Concepts381.707,150.025.34%1,616.40
Standard Life Aberdeen59.707,022.090.85%763.70
Crestview31.616,576.850.48%238.85
Innovator249.235,493.564.54%1,152.90
Principal55.075,331.521.03%961.07
Manulife71.295,024.931.42%-609.90
Amplify Investments48.594,593.901.06%1,263.16
New York Life33.244,437.590.75%339.57
Nuveen Securities207.174,338.834.77%1,314.63
Concierge Technologies-307.154,266.81-7.20%-2,416.05
The Hartford169.504,238.514.00%314.67
Janus Henderson53.574,148.601.29%209.55
US Global Investors-91.503,525.43-2.60%407.66
Barclays-135.173,002.15-4.50%1,153.53
BMO24.162,983.920.81%369.50
Toroso Investments116.972,433.234.81%756.53
AdvisorShares91.992,166.854.25%1,325.89
Prudential98.381,860.725.29%482.23
Ameriprise Financial17.421,614.671.08%342.02
O’Shares Investments-1.091,586.65-0.07%9.87
Defiance ETFs13.481,500.850.90%390.02
GraniteShares16.141,499.391.08%156.34
Vident-10.901,474.28-0.74%-33.40
Aptus Capital Advisors60.991,394.444.37%334.74
Virtus Investment Partners54.991,287.784.27%304.14
UBS-8.211,252.80-0.66%-57.74
Davis Advisers12.681,251.111.01%121.27
Cambria-5.661,078.79-0.52%202.22
Credit Suisse Group AG54.481,064.475.12%293.68
Inspire9.711,011.250.96%178.11
Main Management19.95996.502.00%231.34
EMPIRICAL FINANCE LLC10.88968.071.12%247.22
Rational Capital LLC130.25876.1114.87%634.20
The Bank of New York Mellon Corp.29.12875.953.32%311.26
Nationwide80.54854.629.42%310.98
Aegon-7.47798.53-0.94%-38.59
The Motley Fool10.17694.661.46%70.22
Horizon Kinetics LLC-2.90623.34-0.47%594.26
Simplify Asset Management Inc.49.68578.838.58%423.65
Renaissance Capital-62.77576.01-10.90%-153.87
Tortoise1.14550.330.21%44.22
Roundhill Investments13.05529.512.46%269.03
Merk19.41494.113.93%76.68
Timothy Plan4.78482.930.99%34.33
TrimTabs-1.46437.65-0.33%24.44
Redwood Investment Management11.98433.202.77%-24.70
Howard Capital Management9.06429.912.11%68.87
Liquid Strategies17.54403.104.35%84.05
T. Rowe Price Group, Inc.34.62392.348.82%184.46
Distillate Capital-0.45383.16-0.12%118.65
SRN Advisors-10.57371.85-2.84%60.37
Sprott0.00366.050.00%18.15
Al Marketing LLC-4.20351.15-1.20%-42.99
Regents Park Funds3.67344.921.06%68.03
ClearShares LLC3.26340.700.96%89.49
Teucrium-50.75304.76-16.65%-81.44
ProFund Advisors LLC6.18293.122.11%258.68
WBI-3.43291.27-1.18%-3.98
Government of Sweden-5.54291.17-1.90%3.39
Donald L. Hagan LLC6.67267.222.50%97.39
Tuttle Tactical Management, LLC-28.64228.75-12.52%64.80
Mcivy Co. LLC-2.20217.41-1.01%114.67
Intangible Capital0.00195.290.00%2.46
Core Alternative Capital2.96193.031.53%43.56
Syntax Advisors0.00190.960.00%48.05
Little Harbor Advisors12.45187.526.64%116.54
Capital Impact Advisors-0.66178.27-0.37%-5.19
TrueMark Investments4.34153.912.82%74.25
Arrow Funds0.00134.210.00%3.22
ProcureAM-0.88129.74-0.68%77.25
Wahed6.67125.525.32%45.83
Gadsden0.00117.080.00%16.55
AGF0.91109.200.84%-15.01
Advisors Asset Management13.28108.6912.21%59.90
Kingsview Partners LLC-1.98107.38-1.85%98.59
CornerCap Investment Counsel, Inc.1.52105.051.45%30.12
Wainwright, Inc.0.00104.740.00%90.25
Emles Advisors LLC-12.8094.38-13.56%30.26
Humankind USA LLC-1.3085.57-1.52%76.27
Swan Global Investments21.9381.9526.76%76.49
Exponential ETFs1.2881.601.57%1.20
Change Finance3.3679.594.22%36.71
iM Square SAS2.1478.042.74%18.36
Pettee Investors0.0075.270.00%21.78
Impact Shares0.0068.320.01%25.54
Groupe BPCE0.3467.900.50%13.01
Metaurus Advisors-0.0266.77-0.03%5.91
Beyond Investing1.0059.231.69%15.62
Pacific Life0.0057.110.00%-0.11
Guinness Atkinson Asset Management0.0054.100.00%15.08
Neil Azous Revocable Trust1.4853.602.77%31.57
Absolute Investment Advisers LLC0.6850.691.34%9.84
Esoterica0.0050.220.00%27.83
Infusive Asset Management0.0046.020.00%8.53
Toews Corp.2.0545.854.47%-3.57
Alger Group Holdings LLC3.9242.649.19%34.32
Highland Capital Management-1.6041.77-3.83%-11.38
Premise Capital-0.8339.85-2.08%-14.10
Alexis Investment Partners LLC19.9137.4453.18%19.91
Red Gate Advisers LLC0.2135.790.58%5.60
Cabot ETF Partners LLC-0.5535.54-1.55%33.41
Rayliant Investment Research2.7435.047.83%36.21
Inverdale Capital Management LLC3.5734.0210.49%27.94
ETF Series Solutions0.0033.160.00%4.58
2nd Vote Value Investments, Inc2.3832.217.39%24.56
AlphaMark Advisors0.0026.030.00%-1.41
Formidable Asset Management1.2424.345.11%23.24
Truist0.0124.140.03%0.84
Whitford Asset Management0.0024.100.00%20.07
Uncommon Investment Advisors LLC2.8523.1212.33%22.06
MCCM Group LLC-1.4421.40-6.75%33.06
Changebridge Capital LLC-0.2217.23-1.27%10.66
The Leuthold Group LLC0.0015.200.00%1.43
Ridgeline Research LLC0.0013.910.00%9.93
GAMCO Investors, Inc.0.0013.890.00%7.27
Knights of Columbus13.1813.13100.33%13.18
Mairs & Power, Inc.0.2512.981.96%12.78
Point Bridge Capital0.0012.590.00%1.00
Counterpoint Mutual Funds LLC-0.6111.50-5.29%-1.20
EquBot0.0011.410.00%4.82
Alternative Access Funds LLC0.0010.030.00%0.00
ASYMmetric ETFs6.639.9966.36%9.73
New Age Alpha Advisors LLC0.758.408.93%6.24
Water Island Capital Partners LP1.287.7916.50%1.29
Jacob Asset Management5.475.6596.70%5.47
Global Beta Advisors0.005.070.00%-2.99
Reflection Asset Management, LLC0.004.190.01%1.29
Applied Finance Group0.003.970.00%2.49
Democracy Investment Management LLC1.303.2839.57%2.61
Wilshire Phoenix Funds LLC0.001.800.00%0.00
Eaton Vance Corp.0.000.000.00%0.00
Cavalier160.000.000.00%3.19

 

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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