ETFs Add $91B In March

The U.S. ETF industry added a little more than $91 billion in net assets in March, marking a continued growth of inflows despite the Russian invasion of Ukraine and a Federal Reserve signaling its intent to attack inflation. 

U.S.-listed ETFs have added $197.3 billion in assets year-to-date and have approximately $7.1 billion overall, according to ETF.com data provider FactSet. 

Large Caps Recoup 

A post-Fed hike surge in equities brought the Nasdaq-100 above the 10% correction level for 2022, and the Invesco QQQ Trust (QQQ) was rewarded with a nearly $6 billion net inflow to lead all ETFs in gains. 

The jump in large cap equities also benefited the big three S&P 500 ETFs, with the SPDR S&P 500 ETF Trust (SPY), the Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) adding a combined $13.1 billion on the month. 

However, SPY remains well in the red on the year, with $15.5 billion in new outflows. 

A Tale Of Two Bond Maturities 

The Fed also began its long-awaited hiking cycle by adding a quarter-percent to its target funds range in March, triggering a reallocation in bond fund exposure amid a massive jump in yields. The iShares 20+ Year Treasury Bond ETF (TLT) was the second-largest gainer on the month, with just under $4.7 billion in new assets. 

In another flight to relative safety, the SPDR Gold Trust (GLD) added $3.8 billion. 

Short-maturity bond funds struggled as traders sought to clear out their holdings in anticipation of new issues of higher-yielding bonds. The Vanguard Short-Term Bond ETF (BSV) and the PIMCO Enhanced Short Maturity Active ETF (MINT) lost a combined $1.5 billion during the month. 

The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) suffered a $966.2 million outflow as investors fear broader economic head winds and rising interest rates, making safer Treasury bonds more appealing. 

Sector, International Equity Struggles 

Sector-specific ETFs dotted the top 10 outflows list for various reasons. The Energy Select Sector SPDR Fund (XLE) saw the largest outflow, with almost $2 billion in losses on the month, likely due to profit-taking after the Russian invasion of Ukraine sent oil markets surging. 

The war opened the possibility early in the month of the Fed potentially reducing the size and speed of its hikes, which cost the iShares Global Financials ETF (IXG) $1.13 billion in outflows despite banks historically doing well in rising rate environments. The hike is also sending mortgage and borrowing rates higher, leading to a $1.2 billion outflow in the iShares U.S. Real Estate ETF (IYR). 

Several international equity ETFs struggled, with the iShares MSCI EAFE Growth ETF (EFG) and the iShares MSCI EAFE Value ETF (EFV) losing a combined $2.2 billion on the month due to concerns over Europe’s reliance on Russian oil and gas.  

The XTrackers Harvest CSI 300 China A-Shares ETF (ASHR) saw a $730 million outflow due to rumors of China potentially giving Russia aid to offset Western sanctions and a U.S. law that could potentially lead to all Chinese stocks on American exchanges being delisted in several years’ time. 

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

Top Gainers (March 2022)

Top Gainers (Year-to-Date)

Biggest Losers (March 2022)

Biggest Losers (Year-to-Date)

Asset Classes (March 2022)

Asset Classes (Year-to-Date)

March 2022 ETF Issuer League Table

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.