Fixed Income ETFs Fuel Record 2017 Inflow

October 02, 2017

Investors continued to add money into exchange-traded funds at a blistering pace in September, encouraged by a record run in the stock market. On net, $28.2 billion flowed into U.S.-listed ETFs during the month, according to the latest data from FactSet. That follows inflows of $29.9 billion for the month of August.

Year-to-date inflows now stand at $332.1 billion, a fresh annual record.

During the month, the S&P 500 hit a new all-time high around 2,519. The widely followed stock index was up 14.2% through the first nine months of 2017.

Meanwhile, the U.S. 10-year Treasury yield, perhaps the most widely followed bond benchmark, leapt to 2.33% by the end of September, up from where it started the month, at 2.12% (bond prices and yields move inversely).

Still, the sell-off in bonds didn't stop investors from putting money into fixed-income ETFs. They garnered the most inflows of any ETF segment during the month―$11.3 billion. That was followed by international equity ETFs, with $9.5 billion worth of inflows; and U.S. equity ETFs, with $5.6 billion.

Other segments to see notable inflows were international fixed-income ETFs, with $689 million; and commodity ETFs, with $2.2 billion.

Unfazed By Hawkish Yellen

One of the most noteworthy ETFs to see interest during September was the iShares 20+ Year Treasury Bond ETF (TLT). Its $2.5 billion worth of inflows catapulted total assets under management for the fund to $9.5 billion, an increase of 26%.

TLT was popular even as interest rates increased on the back of relatively hawkish comments from Federal Reserve Chair Janet Yellen. In a speech at the end of the month, Yellen said it could be risky to move "too gradually" in hiking interest rates.

Markets now imply there is a 70% chance that the Fed raises rates at the December central bank meeting.

Another popular ETF in September, despite falling prices, was the SPDR Gold Trust (GLD). Rising rates and a climbing dollar sent gold prices down $70/oz from their September peaks, but investors still added $2.4 billion to GLD.

Profit-Taking In Inverse VIX, Oil ETFs
Taking a look at the other side of the ledger, the ETF to see the largest outflows was the SPDR S&P 500 ETF Trust (SPY). SPY's outflows of $10.7 billion were well ahead of any other fund.

The ProShares Short VIX Short-Term Futures ETF (SVXY) and the VelocityShares Daily Inverse VIX Short-Term ETN (XIV) were two other losers on the list, with outflows of $583 million and $419 million, respectively.

Both funds rallied hard in September, and are among the top-performing ETFs of 2017, with year-to-date gains of 107%.

Finally, another fund worth mentioning is the United States Oil Fund (USO), another big loser during the month, with outflows of $490 million. Traders took profits in the fund as oil prices briefly hit a five-month high during September.

Contact Sumit Roy at [email protected]

 

Top Gainers (September 2017)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM YTD 2017 Net Flows($,M)
IWM iShares Russell 2000 ETF BlackRock 2,458.15 41,153.33 6.35% -553.09
TLT iShares 20+ Year Treasury Bond ETF BlackRock 2,453.29 9,515.84 34.74% 4,054.16
GLD SPDR Gold Trust State Street Global Advisors 2,040.32 35,643.47 6.07% 1,994.87
IEFA iShares Core MSCI EAFE ETF BlackRock 2,009.20 35,740.83 5.96% 16,477.27
VWO Vanguard FTSE Emerging Markets ETF Vanguard 1,560.94 62,002.57 2.58% 8,540.17
VOO Vanguard S&P 500 ETF Vanguard 1,265.42 73,773.19 1.75% 9,953.35
XLF Financial Select Sector SPDR Fund State Street Global Advisors 1,186.63 27,219.60 4.56% 2,455.14
HYG iShares iBoxx $ High Yield Corporate Bond ETF BlackRock 1,172.19 19,332.49 6.45% 77.68
VEA Vanguard FTSE Developed Markets ETF Vanguard 988.17 62,347.82 1.61% 14,165.68
IJR iShares Core S&P Small Cap ETF BlackRock 902.35 33,211.14 2.79% 4,996.86

 

Top Gainers (Year-to-Date)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM September 2017 Net Flows($,M)
IVV iShares Core S&P 500 ETF BlackRock 23,306.80 125,844.80 22.73% 152.97
IEFA iShares Core MSCI EAFE ETF BlackRock 16,477.27 35,740.83 85.54% 2,009.20
VEA Vanguard FTSE Developed Markets ETF Vanguard 14,165.68 62,347.82 29.40% 988.17
IEMG iShares Core MSCI Emerging Markets ETF BlackRock 13,403.30 37,215.54 56.29% 752.76
VOO Vanguard S&P 500 ETF Vanguard 9,953.35 73,773.19 15.60% 1,265.42
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF BlackRock 9,505.06 37,485.21 33.97% -835.74
EFA iShares MSCI EAFE ETF BlackRock 9,481.25 79,767.07 13.49% 0.00
VWO Vanguard FTSE Emerging Markets ETF Vanguard 8,540.17 62,002.57 15.97% 1,560.94
AGG iShares Core U.S. Aggregate Bond ETF BlackRock 8,145.51 50,304.97 19.32% 506.44
VCIT Vanguard Intermediate-Term Corporate Bond ETF Vanguard 6,747.50 17,416.10 63.25% 872.63

 

Biggest Losers (September 2017)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM YTD 2017 Net Flows($,M)
SPY SPDR S&P 500 ETF Trust State Street Global Advisors -7,995.11 241,728.41 -3.20% -10,784.16
XLI Industrial Select Sector SPDR Fund State Street Global Advisors -1,013.72 10,926.78 -8.49% -595.28
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF BlackRock -835.74 37,485.21 -2.18% 9,505.06
QQQ PowerShares QQQ Trust Invesco PowerShares -824.36 52,152.22 -1.56% 915.48
SVXY ProShares Short VIX Short-Term Futures ETF ProShares -583.38 1,110.04 -34.45% 369.51
USO United States Oil Fund LP US Commodity Funds -489.69 2,290.68 -17.61% -579.71
XIV VelocityShares Daily Inverse VIX Short-Term ETN Credit Suisse -419.26 1,021.85 -29.09% -100.31
EWG iShares MSCI Germany ETF BlackRock -361.56 4,628.70 -7.25% -124.62
TNA Direxion Daily Small Cap Bull 3x Shares Direxion -339.53 524.67 -39.29% -476.40
EWJ iShares MSCI Japan ETF BlackRock -331.26 15,913.10 -2.04% -1,219.75

 

Biggest Losers (Year-to-Date)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM September 2017 Net Flows($,M)
SPY SPDR S&P 500 ETF Trust State Street Global Advisors -10,784.16 241,728.41 -4.27% -7,995.11
GDX VanEck Vectors Gold Miners ETF VanEck -2,908.40 7,610.53 -27.65% -115.66
DBEF Deutsche X-trackers MSCI EAFE Hedged Equity ETF Deutsche Bank -1,619.09 6,882.01 -19.05% -165.03
MDY SPDR S&P Midcap 400 ETF Trust State Street Global Advisors -1,413.55 18,651.72 -7.04% 237.90
IWF iShares Russell 1000 Growth ETF BlackRock -1,369.03 36,596.19 -3.61% 159.36
HEDJ WisdomTree Europe Hedged Equity Fund WisdomTree -1,275.38 8,952.81 -12.47% -60.63
EWJ iShares MSCI Japan ETF BlackRock -1,219.75 15,913.10 -7.12% -331.26
FXN First Trust Energy AlphaDEX Fund First Trust -1,147.23 223.25 -83.71% -21.71
EWW iShares MSCI Mexico Capped ETF BlackRock -840.76 1,280.49 -39.64% 5.64
DVY iShares Select Dividend ETF BlackRock -807.15 17,013.79 -4.53% -28.02

 

Asset Classes (September 2017)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 5,651.99 1,738,271.92 0.33%
International Equity 9,485.86 727,781.49 1.30%
U.S. Fixed Income 11,243.32 507,389.30 2.22%
International Fixed Income 689.27 54,360.95 1.27%
Commodities ETFs 2,248.77 66,037.65 3.41%
Currency -115.31 1,386.34 -8.32%
Leveraged -641.42 29,769.77 -2.15%
Inverse -553.72 17,729.04 -3.12%
Asset Allocation 148.29 7,570.60 1.96%
Alternatives 15.59 4,051.19 0.38%
Total: 28,172.63 3,154,348.25 0.89%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 99,424.35 1,738,271.92 5.73%
International Equity 121,694.03 727,781.49 16.72%
U.S. Fixed Income 90,769.56 507,389.30 17.85%
International Fixed Income 12,760.03 54,360.95 23.82%
Commodities ETFs 2,240.63 66,037.65 3.40%
Currency -152.97 1,386.34 -11.03%
Leveraged 1,322.77 29,769.77 4.44%
Inverse 2,569.07 17,729.04 14.49%
Asset Allocation 410.07 7,570.60 5.42%
Alternatives 1,041.96 4,051.19 25.72%
Total: 332,074.82 3,154,348.25 10.53%

 

September 2017 League Table

Issuer Net Flows ($,M) AUM ($,M) % of AUM YTD 2017 Net Flows($,M)
BlackRock $17,393.73 1,246,517.71 1.40% $158,157.42
Vanguard $9,450.31 782,949.34 1.21% $104,605.00
State Street Global Advisors -$2,208.66 557,680.27 -0.40% $6,738.09
Invesco PowerShares $764.71 128,495.90 0.60% $6,469.11
Charles Schwab $1,785.61 86,847.33 2.06% $20,052.42
First Trust -$587.23 51,482.83 -1.14% $5,961.98
WisdomTree -$188.63 43,840.64 -0.43% -$146.72
Guggenheim $127.32 37,066.39 0.34% $2,853.88
VanEck $142.63 32,711.03 0.44% $987.45
ProShares $6.74 29,279.21 0.02% $2,716.12
Northern Trust $39.23 14,892.72 0.26% $2,196.14
PIMCO $37.87 14,395.24 0.26% $1,677.34
ALPS $1.07 14,227.55 0.01% $2,098.05
Deutsche Bank $128.95 12,728.87 1.01% -$2,048.54
Direxion $171.03 11,480.18 1.49% $99.57
Fidelity $26.55 7,453.58 0.36% $1,700.37
UBS -$5.83 7,211.85 -0.08% $208.20
Barclays Capital $285.49 6,740.41 4.24% $522.73
Global X $20.21 6,599.39 0.31% $2,491.36
Goldman Sachs -$410.47 5,843.81 -7.02% $2,493.17
JPMorgan -$162.77 5,775.96 -2.82% $1,105.05
Credit Suisse -$437.31 4,666.91 -9.37% $1,577.33
Exchange Traded Concepts $301.06 4,062.41 7.41% $1,551.09
US Commodity Funds -$185.32 3,561.93 -5.20% -$633.20
IndexIQ $12.32 2,949.75 0.42% $557.91
ETF Securities $216.55 2,573.73 8.41% $196.99
OppenheimerFunds -$19.43 2,282.22 -0.85% $591.06
Victory Capital Management $0.00 1,853.31 0.00% $819.79
ETF Managers Group -$3.82 1,475.99 -0.26% $458.20
KraneShares $42.06 1,370.81 3.07% $905.75
Columbia $11.64 1,256.40 0.93% $138.79
Pacer Financial -$1.48 1,187.66 -0.12% $347.19
AdvisorShares $7.55 1,109.97 0.68% $42.68
The Principal Financial Group $0.00 1,078.67 0.00% $456.16
Millington Securities Inc $558.69 989.90 56.44% -$86.67
Virtus $70.58 949.48 7.43% $471.16
John Hancock -$1.82 888.81 -0.20% $149.52
CitiGroup $624.59 775.46 80.54% $361.12
Franklin ETF Trust $17.98 761.14 2.36% $148.79
Northern Lights $38.08 628.51 6.06% $474.73
Cambria $25.11 621.10 4.04% $241.78
Highland Capital Management -$491.92 585.00 -84.09% $119.78
Legg Mason $186.88 562.63 33.22% $397.87
FQF Trust $11.37 554.03 2.05% $72.96
ARK $26.70 396.26 6.74% $278.46
Swedish Export Credit $0.00 342.12 0.00% -$10.42
Nationwide Fund Advisors $0.00 335.09 0.00% $227.49
Janus Henderson $227.49 282.58 80.50% $142.71
Hartford $64.76 275.41 23.51% $114.32
Alpha Architect $1.56 262.73 0.59% $100.00
Horizons $9.88 224.93 4.39% $74.63
Davis $10.45 216.73 4.82% $170.26
Nuveen $9.98 177.76 5.61% $34.34
Teucrium -$9.39 164.44 -5.71% $38.83
Elkhorn $0.00 154.82 0.00% $15.10
Arrow Investment Advisors $3.60 134.86 2.67% $7.54
Merk $3.04 134.72 2.26% $21.79
US Global Investors $0.68 123.79 0.55% $57.85
Amplify $42.10 115.14 36.56% $96.44
ClearShares -$141.10 102.44 -137.74% $98.35
Reality Shares $18.60 79.61 23.36% $31.21
Academy Funds $2.54 78.38 3.24% -$16.14
Montage Managers -$0.15 76.50 -0.20% $30.35
OSI ETF Trust $2.90 68.88 4.21% $14.58
Strategy Shares $1.97 67.07 2.94% $59.83
BMO $13.45 65.85 20.42% $45.81
ACSI Funds $22.81 47.01 48.53% $0.00
TrimTabs Asset Management $19.42 42.01 46.23% $27.15
Aptus Capital Advisors $22.44 37.14 60.41% $28.82
Morgan Stanley $0.00 32.48 0.00% $3.93
OBP Capital LLC $1.24 30.18 4.11% $27.52
AlphaMark Advisors $2.62 25.87 10.13% $0.00
Validea Capital Management $7.38 25.07 29.44% $13.93
Janus $0.85 25.04 3.39% $1.36
Point Bridge Capital $0.00 18.19 0.00% $22.81
Diamond Hill $0.00 17.75 0.00% -$1.56
Renaissance Capital $0.03 16.66 0.18% -$1.13
Natixis $1.44 15.78 9.13% $0.00
Premise Capital -$11.89 14.37 -82.77% $8.22
GraniteShares $1.41 12.88 10.94% $5.10
CSOP $0.00 9.87 0.00% -$0.57
LocalShares $0.00 8.17 0.00% $0.00
StrongVest -$0.01 7.64 -0.13% $6.29
USCF Advisers $0.00 4.93 0.00% -$0.83
AlphaClone $0.00 4.83 0.00% $1.47
SerenityShares $0.00 2.62 0.00% $0.01
Transamerica $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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