Investors Add Money To ETFs Despite Market Plunge

November 01, 2018

The U.S. stock market may have experienced its worst decline since 2011 in October, but ETF investors hardly flinched. That’s based on the latest reading of fund flows from FactSet, which showed investors added $4.4 billion of new money to U.S.-listed ETFs. Year-to-date inflows increased to $215 billion.

The figures suggest ETF investors weren’t panicking in the face market volatility—and were even bargain hunting in certain spots.

Indeed, despite a 6.8% decline in the S&P 500 during October, a mere $596 million dribbled out of U.S. equity ETFs.

Broad, low-cost equity ETFs like the iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO)—which are popular with long-term, buy-and-hold investors—offset outflows from the trader-favorite SPDR S&P 500 ETF Trust (SPY).

Meanwhile, a hefty $6.1 billion of money headed for international equity ETFs, even as share prices in many international markets plunged.

The iShares MSCI Japan ETF (EWJ), the iShares Core MSCI Total International Stock ETF (IXUS) and the iShares Core MSCI EAFE ETF (IEFA) were the biggest flows winners in that group.

The one area ETF investors weren’t very fond of? U.S. fixed income. That group had outflows of $5 billion during October, its first monthly outflow since November 2015. Bond prices largely fell as the benchmark U.S. 10-year Treasury yield increased from 3.06% to 3.14% from September to October, briefly hitting a seven-year high of 3.26% mid-month.

Half of the names on the top outflows list were fixed-income funds, including the iShares Core U.S. Aggregate Bond ETF (AGG), the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) and the iShares 20+ Year Treasury Bond ETF (TLT).

Investors jettisoned those funds in favor of super-safe, cash-like fixed income ETFs. The SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) and the JPMorgan Ultra-Short Income ETF (JPST) saw inflows of a combined $2.7 billion during the month.

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

 

Top Gainers (October 2018)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM YTD 2018 Net Flows($,M)
IVV iShares Core S&P 500 ETF BlackRock 4,787.60 156,873.23 3.05% 15,388.93
VOO Vanguard S&P 500 ETF Vanguard 2,167.66 98,291.48 2.21% 14,950.29
XLC Communication Services Select Sector SPDR Fund State Street Global Advisors 1,920.08 3,654.97 52.53% 3,877.06
BIL SPDR Bloomberg Barclays 1-3 Month T-Bill ETF State Street Global Advisors 1,757.31 5,301.74 33.15% 3,348.61
EWJ iShares MSCI Japan ETF BlackRock 1,721.04 16,604.83 10.36% -577.51
IXUS iShares Core MSCI Total International Stock ETF BlackRock 1,607.05 11,447.49 14.04% 4,694.86
TQQQ ProShares UltraPro QQQ ProShares 1,342.12 3,911.15 34.32% 1,610.79
SDY SPDR S&P Dividend ETF State Street Global Advisors 1,058.92 16,601.76 6.38% 365.03
IEFA iShares Core MSCI EAFE ETF BlackRock 993.01 54,542.18 1.82% 20,238.77
JPST JPMorgan Ultra-Short Income ETF JPMorgan 920.83 3,317.03 27.76% 3,201.72

 

Top Gainers (Year-to-Date)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM October 2018 Net Flows($,M)
IEFA iShares Core MSCI EAFE ETF BlackRock 20,238.77 54,542.18 37.11% 993.01
IVV iShares Core S&P 500 ETF BlackRock 15,388.93 156,873.23 9.81% 4,787.60
VOO Vanguard S&P 500 ETF Vanguard 14,950.29 98,291.48 15.21% 2,167.66
IEMG iShares Core MSCI Emerging Markets ETF BlackRock 11,090.42 43,868.56 25.28% 0.00
SHV iShares Short Treasury Bond ETF BlackRock 7,576.63 15,591.56 48.59% 871.71
VTI Vanguard Total Stock Market ETF Vanguard 6,790.50 98,449.79 6.90% 818.52
VTV Vanguard Value ETF Vanguard 6,469.83 42,264.19 15.31% 629.90
VEA Vanguard FTSE Developed Markets ETF Vanguard 6,317.14 65,323.46 9.67% 823.50
IJR iShares Core S&P Small Cap ETF BlackRock 5,555.93 42,080.44 13.20% 3.30
FLOT iShares Floating Rate Bond ETF BlackRock 5,217.84 11,831.88 44.10% 600.65

 

Biggest Losers (October 2018)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM YTD 2018 Net Flows($,M)
IWB iShares Russell 1000 ETF BlackRock -2,941.48 16,713.84 -17.60% -3,857.00
SPY SPDR S&P 500 ETF Trust State Street Global Advisors -2,905.31 255,395.40 -1.14% -21,123.75
AGG iShares Core U.S. Aggregate Bond ETF BlackRock -2,852.54 52,688.26 -5.41% 2,004.98
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF BlackRock -2,102.03 31,253.67 -6.73% -5,204.34
JNK SPDR Bloomberg Barclays High Yield Bond ETF State Street Global Advisors -1,970.69 7,432.79 -26.51% -4,792.90
TLT iShares 20+ Year Treasury Bond ETF BlackRock -1,732.28 7,800.15 -22.21% 1,459.12
XLK Technology Select Sector SPDR Fund State Street Global Advisors -1,576.01 19,215.93 -8.20% -1,340.17
XLY Consumer Discretionary Select Sector SPDR Fund State Street Global Advisors -1,462.32 13,057.12 -11.20% -470.44
TIP iShares TIPS Bond ETF BlackRock -1,272.10 22,284.98 -5.71% -668.38
IYR iShares U.S. Real Estate ETF BlackRock -1,068.23 3,367.89 -31.72% -428.32

 

Biggest Losers (Year-to-Date)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM October 2018 Net Flows($,M)
SPY SPDR S&P 500 ETF Trust State Street Global Advisors -21,123.75 255,395.40 -8.27% -2,905.31
EFA iShares MSCI EAFE ETF BlackRock -12,346.87 63,521.60 -19.44% -587.89
EZU iShares MSCI Eurozone ETF BlackRock -6,071.77 7,726.71 -78.58% -521.85
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF BlackRock -5,204.34 31,253.67 -16.65% -2,102.03
EEM iShares MSCI Emerging Markets ETF BlackRock -5,155.11 27,675.33 -18.63% -109.27
JNK SPDR Bloomberg Barclays High Yield Bond ETF State Street Global Advisors -4,792.90 7,432.79 -64.48% -1,970.69
IWB iShares Russell 1000 ETF BlackRock -3,857.00 16,713.84 -23.08% -2,941.48
DXJ WisdomTree Japan Hedged Equity Fund WisdomTree -3,634.17 4,950.70 -73.41% -187.87
IWD iShares Russell 1000 Value ETF BlackRock -3,578.64 36,260.80 -9.87% 752.00
GLD SPDR Gold Trust State Street Global Advisors -3,164.57 29,698.70 -10.66% 472.31

 

Asset Classes (October 2018)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -595.51 1,998,766.87 -0.03%
International Equity 6,136.89 729,358.95 0.84%
U.S. Fixed Income -5,030.83 560,218.94 -0.90%
International Fixed Income 737.70 65,348.05 1.13%
Commodities  819.88 61,102.59 1.34%
Currency 32.46 1,107.89 2.93%
Leveraged 3,447.64 34,290.89 10.05%
Inverse -706.73 13,505.69 -5.23%
Asset Allocation -18.87 8,941.88 -0.21%
Alternatives -432.24 4,864.05 -8.89%
Total: 4,390.39 3,477,505.79 0.13%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 98,099.83 1,998,766.87 4.91%
International Equity 41,925.83 729,358.95 5.75%
U.S. Fixed Income 56,032.93 560,218.94 10.00%
International Fixed Income 10,206.62 65,348.05 15.62%
Commodities  -493.79 61,102.59 -0.81%
Currency -60.29 1,107.89 -5.44%
Leveraged 6,512.53 34,290.89 18.99%
Inverse 1,943.42 13,505.69 14.39%
Asset Allocation 659.71 8,941.88 7.38%
Alternatives 295.74 4,864.05 6.08%
Total: 215,122.53 3,477,505.79 6.19%

 

October 2018 League Table

Issuer Net Flows ($,M) AUM ($,M) % of AUM YTD 2018 Net Flows($,M)
BlackRock 1,917.42 1,344,689.08 0.14% 72,678.65
Vanguard 3,030.92 876,216.06 0.35% 63,633.91
State Street Global Advisors -6,659.53 600,207.73 -1.11% -7,533.84
Invesco -2,232.50 182,285.60 -1.22% 6,070.04
Charles Schwab 1,600.73 117,479.77 1.36% 23,744.99
First Trust -1,625.59 65,496.12 -2.48% 10,736.38
WisdomTree -118.77 38,197.31 -0.31% -4,381.64
VanEck 247.05 33,800.38 0.73% 3,780.71
ProShares 1,142.66 29,910.45 3.82% 3,562.07
PIMCO 296.21 17,589.23 1.68% 3,070.51
JPMorgan 2,275.52 16,181.34 14.06% 10,895.44
Northern Trust 98.22 15,462.35 0.64% 462.21
ALPS -3.49 12,958.87 -0.03% -346.81
Rafferty Asset Management 1,300.04 12,004.98 10.83% 1,896.89
Fidelity 316.38 11,901.17 2.66% 3,178.81
Deutsche Bank 165.95 11,857.93 1.40% -609.12
Goldman Sachs 751.09 9,842.86 7.63% 3,875.47
Mirae Asset Global Investments -189.57 9,043.15 -2.10% 1,961.12
UBS 66.11 6,545.95 1.01% 57.93
Barclays Bank PLC -445.05 5,421.76 -8.21% 1,800.82
Exchange Traded Concepts -262.12 4,527.84 -5.79% 187.32
Credit Suisse 56.12 4,415.31 1.27% 632.45
New York Life 136.19 4,028.54 3.38% 698.35
OppenheimerFunds 558.97 3,533.39 15.82% 1,119.95
The Principal Financial Group 196.60 3,377.10 5.82% 1,269.99
Victory Capital Management 98.22 3,145.83 3.12% 1,032.69
ETF Managers Group 65.90 3,143.23 2.10% 1,478.29
Pacer Financial 213.97 2,972.98 7.20% 1,479.43
US Commodity Funds 40.72 2,771.09 1.47% -1,088.14
Aberdeen Asset Management 13.89 2,250.72 0.62% -203.09
ARK -107.12 2,199.14 -4.87% 1,390.06
John Hancock 835.98 2,159.49 38.71% 1,155.46
KraneShares 166.24 1,809.69 9.19% 962.82
Hartford 395.24 1,705.52 23.17% 1,478.36
Franklin Templeton Investments 60.29 1,567.69 3.85% 661.01
Northern Lights 51.76 1,167.80 4.43% 435.39
USAA Asset Management 27.63 1,101.17 2.51% 853.64
Janus Henderson 95.73 868.77 11.02% 593.75
Millington Securities Inc -7.54 860.24 -0.88% -85.18
Virtus -12.88 843.72 -1.53% 19.31
Legg Mason 6.22 800.11 0.78% 130.25
AdvisorShares 8.17 762.61 1.07% -66.80
Transamerica 0.00 756.15 0.00% -61.15
Columbia -63.39 713.82 -8.88% -382.46
CitiGroup 6.41 706.08 0.91% 109.80
Innovator Capital Management -21.79 694.10 -3.14% 251.87
Cambria -21.20 646.57 -3.28% 6.99
OSI ETF Trust -12.38 613.04 -2.02% -74.52
Davis 19.42 551.48 3.52% 261.44
Highland Capital Management -71.28 548.88 -12.99% -11.01
Amplify -94.56 542.01 -17.45% 413.75
Nuveen -52.33 534.44 -9.79% 147.02
Alpha Architect -12.87 431.30 -2.98% 162.10
GraniteShares 6.65 359.97 1.85% 343.14
Nationwide Fund Advisors -0.67 346.71 -0.19% 2.19
BMO 0.00 323.07 0.00% 76.84
Strategy Shares 5.92 303.41 1.95% 247.47
Reality Shares -14.28 221.44 -6.45% 141.51
Aptus Capital Advisors 18.59 212.25 8.76% 160.32
Arrow Investment Advisors -5.01 167.52 -2.99% 7.44
Montage Managers 2.26 159.67 1.42% 49.04
The RBB Fund 7.51 141.09 5.32% 138.99
PGIM Investments 39.72 139.11 28.56% 79.78
TrimTabs Asset Management 1.89 137.80 1.37% 95.40
Merk 0.09 134.96 0.06% 6.75
ClearShares 0.00 131.52 0.00% 23.65
US Global Investors 0.00 101.31 0.00% -0.84
EntrepreneurShares, LLC -0.85 69.31 -1.22% 15.44
Exponential ETFs 2.29 67.90 3.37% 15.66
American Century 0.00 60.99 0.00% 35.21
Redwood Investment Management 50.87 50.29 101.17% 50.87
OBP Capital LLC -2.54 49.79 -5.11% 1.25
Natixis 2.47 47.98 5.15% 11.84
Point Bridge Capital -1.32 34.36 -3.84% 3.06
Premise Capital 0.00 33.26 0.00% 15.10
FQF Trust 7.29 30.80 23.68% 3.18
Validea Capital Management 0.00 24.39 0.00% 0.03
AlphaMark Advisors 0.00 23.84 0.00% -1.35
Morgan Stanley 0.00 22.67 0.00% -8.50
Diamond Hill 0.00 22.10 0.00% 3.26
Advisors Asset Management 5.21 21.49 24.25% 17.31
Cboe Vest Financial 5.03 19.14 26.28% 19.45
Metaurus Advisors -0.00 18.35 -0.00% 13.45
Active Weighting Advisors 1.69 17.66 9.55% 3.46
Renaissance Capital -1.25 17.35 -7.23% -1.21
Sage Advisory Services 0.00 14.46 0.00% 4.84
USCF Advisers 0.00 11.13 0.00% 0.14
CSOP 0.00 9.61 0.00% 3.49
SL Advisors 0.00 9.24 0.00% 6.50
StrongVest 0.00 8.56 0.00% 0.00
Distillate Capital Partners 7.41 7.37 100.58% 7.41
Salt Financial 5.26 7.31 72.00% 7.75
Little Harbor Advisors 0.60 6.54 9.14% 6.90
Impact Shares 0.00 5.76 0.01% 6.10
Regents Park Funds -1.10 5.55 -19.84% 3.82
TriLine Index Solutions -1.34 4.63 -28.99% 4.91
Defiance ETFs 0.00 4.26 0.00% 5.00
SerenityShares 0.00 4.17 0.00% 0.00
Change Finance 0.00 3.76 0.00% 0.96
EquBot 0.00 3.45 0.00% 3.74
Whitford Asset Management 0.00 0.57 0.00% -1.91
Swedish Export Credit 0.00 0.00 0.00% 0.00

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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