Investors poured more than $48 billion into U.S.-listed ETFs in November, with U.S. equity massively dominating net creations thanks to a presidential election outcome that triggered a market rally.
U.S. equity funds, led by the likes of the SPDR S&P 500 ETF Trust (SPY), the iShares Russell 2000 ETF (IWM) and the Financial Select Sector SPDR Fund (XLF), raked in $49 billion in fresh net assets last month. These three ETFs alone—the top three most popular funds—snagged nearly $20 billion of that total.
The only fixed-income ETF among the top gainers was the iShares TIPS Bond ETF (TIP), raking in $2.1 billion in net assets—an 11% jump in total AUM. It, too, in a way, spoke to investor confidence in the outlook for economic expansion, and for a rise in inflation. In all, U.S. fixed-income ETFs attracted $4 billion in net creations last month.
November’s asset flows put 2016’s total ETF creations at nearly $224 billion, outpacing creations by this time last year, which totaled just over $201 billion by last November. It also puts the ETF market on track to beat 2014’s asset intake record of $243 billion.
So far this year, about half of 2016’s net asset gains have gone into U.S. equity ETFs, and $75 billion have landed in U.S. fixed income.
Out Of Favor
What wasn’t popular in November were emerging markets and gold—two segments that had been on a tear this year, but last month they fell out of favor.
The iShares MSCI Emerging Markets ETF (EEM) bled roughly 12% of its total assets, with net redemptions reaching $3.54 billion. A lot of that came in reaction to the U.S. presidential election—there are many questions about what Donald Trump’s trade policies will be, and how they’ll impact emerging markets and the U.S. dollar.
The SPDR Gold Trust (GLD) and the iShares Gold Trust (IAU) lost a combined $3.4 billion in November as the dollar strengthened and Treasury yields surged higher. So far this year, the gold trade had been one of the most popular safety plays, but in November, it was all about equities as the market reacted to a president-elect who is expected to promote fiscal stimulus and market-friendly policies.
Another interesting data point in our tally of monthly asset flows was the 12% plunge in total AUM linked to inverse ETFs. Led by redemptions of about $850 million in the ProShares Short S&P500 (SH), inverse ETFs lost some $2.15 billion in one month. Betting against the S&P 500 was clearly not a popular play last month.
Top Gainers (November 2016)
|Ticker||Name||Issuer||Net Flows ($,mm)||AUM ($M)||% of AUM||YTD 2016 Net Flows($,M)|
|SPY||SPDR S&P 500 ETF Trust||State Street Global Advisors||7,530.26||208,669.69||3.74%||8,800.15|
|IWM||iShares Russell 2000 ETF||BlackRock||6,105.22||36,590.58||20.03%||4,362.38|
|XLF||Financial Select Sector SPDR Fund||State Street Global Advisors||5,467.63||20,700.60||35.89%||1,750.42|
|IVV||iShares Core S&P 500 ETF||BlackRock||3,838.50||86,951.76||4.62%||10,531.07|
|TIP||iShares TIPS Bond ETF||BlackRock||2,174.08||21,292.45||11.37%||6,743.46|
|XLI||Industrial Select Sector SPDR Fund||State Street Global Advisors||1,915.52||9,857.10||24.12%||2,760.28|
|XLV||Health Care Select Sector SPDR Fund||State Street Global Advisors||1,604.00||13,663.81||13.30%||197.88|
|IJR||iShares Core S&P Small Cap ETF||BlackRock||1,442.39||24,757.87||6.19%||3,782.47|
|VOO||Vanguard S&P 500 Index Fund||Vanguard||1,232.42||54,629.49||2.31%||10,333.03|
|VTV||Vanguard Value Index Fund||Vanguard||1,230.87||25,710.59||5.03%||4,528.70|
Top Gainers (Year-to-Date)
|Ticker||Name||Issuer||Net Flows ($,mm)||AUM ($M)||% of AUM||November 2016 Net Flows($,M)|
|AGG||iShares Core U.S. Aggregate Bond ETF||BlackRock||10,943.09||41,437.66||35.89%||354.03|
|IVV||iShares Core S&P 500 ETF||BlackRock||10,531.07||86,951.76||13.78%||3,838.50|
|VOO||Vanguard S&P 500 Index Fund||Vanguard||10,333.03||54,629.49||23.33%||1,232.42|
|GLD||SPDR Gold Trust||State Street Global Advisors||9,592.67||33,706.48||39.78%||-2,291.90|
|VEA||Vanguard FTSE Developed Markets ETF||Vanguard||8,814.22||37,578.91||30.64%||262.02|
|SPY||SPDR S&P 500 ETF Trust||State Street Global Advisors||8,800.15||208,669.69||4.40%||7,530.26|
|TIP||iShares TIPS Bond ETF||BlackRock||6,743.46||21,292.45||46.35%||2,174.08|
|IEMG||iShares Core MSCI Emerging Markets ETF||BlackRock||6,498.14||16,987.41||61.95%||27.03|
|VWO||Vanguard FTSE Emerging Markets ETF||Vanguard||6,317.12||43,700.04||16.90%||1,119.39|
|LQD||iShares iBoxx $ Investment Grade Corporate Bond ETF||BlackRock||5,194.08||29,685.24||21.21%||-310.53|