ETF inflows slowed from the torrid pace of October, but remained robust during the month of November. Last month, investors added $35.5 billion to U.S.-listed ETFs―down from $55.9 billion the previous month. The data, courtesy of FactSet, also showed that year-to-date inflows hit a new annual record at the end of November, reaching $423.3 billion.
Most asset classes recorded inflows during the latest month. U.S. equity ETFs led the pack, with inflows of $17 billion. Rising hopes that Congress may pass tax cuts by the end of the year fueled enthusiasm for U.S. stocks, which surged to fresh records during November. The S&P 500 reached as high as 2,658, up more than 20%, including dividends.
International equity ETFs also saw strong interest, garnering inflows of $12.1 billion during November. The MSCI all-country index rose for 13-straight months through November, the longest streak on record, according to Reuters.
Meanwhile, U.S. and international fixed-income ETFs had combined inflows of more than $6 billion last month, even as bonds sold off and yields ticked up. The U.S. 10-year Treasury yield touched 2.44% on Nov. 30, up from 2.38% on Oct. 31.
In terms of individual ETFs, low-cost, broad market ETFs continued to be the winners. The iShares Core S&P 500 ETF (IVV), the Vanguard S&P 500 ETF (VOO) and the iShares Russell 2000 ETF (IWM) were at the top of the heap, with inflows of more than $1.5 billion apiece.
On the other hand, the SPDR S&P 500 ETF Trust (SPY) was the biggest loser of the month, with outflows of $5.3 billion. Even though it's cheap, the world's largest ETF has lost market share to even cheaper rivals—like IVV and VOO—this year.
The iShares 20+ Year Treasury Bond ETF (TLT) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) were two other funds to lose favor last month, with outflows of $1.4 billion and $807 million, respectively.
For a full list of the top inflows and outflows for November and year-to-date, see the tables below:
Top Gainers (November 2017)
|Ticker||Name||Issuer||Net Flows ($,mm)||AUM ($M)||% of AUM||YTD 2017 Net Flows($,M)|
|IVV||iShares Core S&P 500 ETF||BlackRock||2,712.47||139,086.53||1.99%||29,952.33|
|VOO||Vanguard S&P 500 ETF||Vanguard||1,897.51||81,598.59||2.38%||13,920.66|
|IWM||iShares Russell 2000 ETF||BlackRock||1,550.63||46,356.78||3.46%||2,948.35|
|XLF||Financial Select Sector SPDR Fund||State Street Global Advisors||1,515.55||31,599.68||5.04%||5,019.16|
|USMV||iShares Edge MSCI Min Vol USA ETF||BlackRock||1,269.32||15,768.99||8.75%||1,420.30|
|MTUM||iShares Edge MSCI USA Momentum Factor ETF||BlackRock||1,186.26||5,877.03||25.29%||3,091.68|
|IEFA||iShares Core MSCI EAFE ETF||BlackRock||1,101.46||41,099.53||2.75%||20,078.74|
|QQQ||PowerShares QQQ Trust||Invesco PowerShares||1,088.53||58,991.40||1.88%||4,648.87|
|AGG||iShares Core U.S. Aggregate Bond ETF||BlackRock||1,081.67||52,308.76||2.11%||10,288.66|
|FXL||First Trust Technology AlphaDEX Fund||First Trust||946.66||1,642.41||136.06%||877.90|
Top Gainers (Year-to-Date)
|Ticker||Name||Issuer||Net Flows ($,mm)||AUM ($M)||% of AUM||November 2017 Net Flows($,M)|
|IVV||iShares Core S&P 500 ETF||BlackRock||29,952.33||139,086.53||27.45%||2,712.47|
|IEFA||iShares Core MSCI EAFE ETF||BlackRock||20,078.74||41,099.53||95.52%||1,101.46|
|VEA||Vanguard FTSE Developed Markets ETF||Vanguard||16,241.65||66,637.96||32.23%||422.48|
|IEMG||iShares Core MSCI Emerging Markets ETF||BlackRock||15,476.60||41,584.02||59.28%||342.17|
|VOO||Vanguard S&P 500 ETF||Vanguard||13,920.66||81,598.59||20.57%||1,897.51|
|LQD||iShares iBoxx $ Investment Grade Corporate Bond ETF||BlackRock||11,442.60||39,508.42||40.77%||628.78|
|AGG||iShares Core U.S. Aggregate Bond ETF||BlackRock||10,288.66||52,308.76||24.49%||1,081.67|
|EFA||iShares MSCI EAFE ETF||BlackRock||9,690.07||82,709.93||13.27%||208.82|
|VWO||Vanguard FTSE Emerging Markets ETF||Vanguard||9,618.54||65,730.09||17.14%||0.15|
|VCIT||Vanguard Intermediate-Term Corporate Bond ETF||Vanguard||7,667.00||18,270.05||72.31%||533.37|