So much for the summer doldrums. Prices for U.S. stocks and flows into U.S.-listed ETFs showed no signs of exhaustion, as both raced to records in June. In total, $45.5 billion of new money entered ETFs during the month, while the S&P 500 rallied to as high as 2,454.
With six months of the year in the books, investors have added a whopping $249.4 billion into ETFs in 2017, not far from the $287.5 billion they added to ETFs during the entirety of 2016.
Total assets under management for U.S.-listed ETFs now stand just under $3 trillion, the latest milestone for an industry that has been crushing record after record all year long.
Int'l Equity ETFs The Big Winners
Fund flows into the various asset classes were distributed relatively evenly, but international equity ETFs were the clear investor favorite during June (and the second quarter as a whole). Inflows into that segment totaled $19.6 billion for the month, almost double the $10.6 billion that went into U.S. equity ETFs.
Meanwhile, U.S. fixed-income ETFs saw inflows of $10.6 billion, as investors shrugged off a Fed rate hike in June. The 10-year Treasury bond yield ended June at 2.27%, below where it started the year, at 2.45%.
The other ETF segments to see notable inflows during the month were international fixed income and commodities, with inflows of $2.6 billion and $1.2 billion, respectively.
iShares ETFs Crushing The Competition
In terms of individual ETFs, iShares products captured the bulk of new money in June―just as they have all year. To put it into context, BlackRock, the parent company of iShares, has seen $117.8 billion come into its ETFs, equal to almost half of all inflows this year.
Investors appreciate iShares' expansive lineup of ETFs, which, in most cases, have low fees and ample liquidity. One example of that is the iShares Core S&P 500 ETF (IVV), which topped the June leader board with inflows of $2.8 billion.
IVV has a rock-bottom expense ratio of 0.04% and has been rewarded with strong inflows and the position as the second-largest ETF in the world.
Vanguard is another low-cost issuer that has been rewarded. Inflows into Vanguard ETFs totaled $77.4 billion during the first six months of the year. ETFs such as the Vanguard FTSE Developed Markets ETF (VEA), with inflows of $2.2 billion during June, have cemented Vanguard as the No. 2 ETF issuer behind only BlackRock.
Other ETFs to see strong investor demand during the month include the iShares Core U.S. Aggregate Bond ETF (AGG), the iShares Core MSCI EAFE ETF (IEFA) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), each with inflows of around $2 billion.
The only ETF to make the top 10 that wasn't an iShares or Vanguard product was State Street's Consumer Staples Select Sector SPDR Fund (XLP), with inflows of $1.3 billion.
Big Outflows From QUAL & GDX
On the other side of the ledger, an eclectic mix of ETFs fell out of favor during June. The PowerShares QQQ Trust (QQQ) was the biggest loser in terms of dollar value, with outflows of $1.2 billion.
But it was the iShares Edge MSCI USA Quality Factor ETF (QUAL), with redemptions of $883 million, and the VanEck Vectors Gold Miners ETF (GDX), with redemptions of $663 million, that really felt the pain relative to their size.
By that measure, the iShares Intermediate Government/Credit Bond ETF (GVI) and the iShares MBS ETF (MBB) were also hit hard, with redemptions of $560 million and $388 million, respectively.
For a full list of the top inflows and outflows for June and the year-to-date period, see the tables below:
Top Gainers ($, Millions)
|Ticker||Name||Issuer||June 2017 Net Flows ($,M)||2017 AUM ($,M)||% of AUM||YTD 2017 Net Flows($,M)|
|IVV||iShares Core S&P 500 ETF||BlackRock||2,764.85||115,280.91||2.40%||17,002.19|
|VEA||Vanguard FTSE Developed Markets ETF||Vanguard||2,229.69||55,655.36||4.01%||9,844.27|
|AGG||iShares Core U.S. Aggregate Bond ETF||BlackRock||2,225.34||47,488.52||4.69%||5,328.17|
|IEFA||iShares Core MSCI EAFE ETF||BlackRock||2,017.50||28,466.78||7.09%||10,098.84|
|LQD||iShares iBoxx $ Investment Grade Corporate Bond ETF||BlackRock||1,957.55||36,035.50||5.43%||8,050.22|
|VGK||Vanguard FTSE Europe ETF||Vanguard||1,908.67||16,212.76||11.77%||3,879.72|
|EFA||iShares MSCI EAFE ETF||BlackRock||1,807.34||77,009.15||2.35%||9,481.25|
|IWM||iShares Russell 2000 ETF||BlackRock||1,640.81||37,768.86||4.34%||-2,150.55|
|XLP||Consumer Staples Select Sector SPDR Fund||SSGA||1,325.99||9,869.65||13.44%||1,170.01|
|VOO||Vanguard S&P 500 ETF||Vanguard||1,304.43||70,028.14||1.86%||8,711.94|
Top Gainers (Year-to-Date)
|Ticker||Name||Issuer||YTD 2017 Net Flows ($,M)||2017 AUM ($,M)||% of AUM||June 2017 Net Flows ($,M)|
|IVV||iShares Core S&P 500 ETF||BlackRock||17,002.19||115,280.91||14.75%||2,764.85|
|IEMG||iShares Core MSCI Emerging Markets ETF||BlackRock||10,982.50||32,570.47||33.72%||1,178.89|
|IEFA||iShares Core MSCI EAFE ETF||BlackRock||10,098.84||28,466.78||35.48%||2,017.50|
|VEA||Vanguard FTSE Developed Markets ETF||Vanguard||9,844.27||55,655.36||17.69%||2,229.69|
|EFA||iShares MSCI EAFE ETF||BlackRock||9,481.25||77,009.15||12.31%||1,807.34|
|VOO||Vanguard S&P 500 ETF||Vanguard||8,711.94||70,028.14||12.44%||1,304.43|
|LQD||iShares iBoxx $ Investment Grade Corporate Bond ETF||BlackRock||8,050.22||36,035.50||22.34%||1,957.55|
|VWO||Vanguard FTSE Emerging Markets ETF||Vanguard||5,465.33||55,442.26||9.86%||792.48|
|AGG||iShares Core U.S. Aggregate Bond ETF||BlackRock||5,328.17||47,488.52||11.22%||2,225.34|
|VCIT||Vanguard Intermediate-Term Corporate Bond ETF||Vanguard||4,629.79||15,248.83||30.36%||938.16|