May Sees ETFs Add $65B Amid Volatility

During a month that saw some intense market volatility and a near bear market, U.S.-listed ETFs still managed to add $64.5 billion, coming roaring back from a $6.1 billion loss in April.  

The industry now has assets under management of $6.67 trillion, which is nonetheless down from the $6.7 trillion managed by U.S.-listed ETFs at the end of the prior month, largely due to market performance. 

Year to date, the U.S. ETF industry has added $257 billion, while last year at this time, year-to-date inflows stood at roughly $395 billion.  

Taking Risk Off The Table 

Investors seem to have been taking a little risk off the table, as fully half of the top 10 ETFs for inflows during the month were in the U.S. fixed income category. That asset class also pulled in more than any other, for a gain of $33.7 billion. For comparison, U.S. equities, usually the asset class dominating flows. gained just $29.1 billion during May.  

The iShares National Muni Bond ETF (MUB) added a total of $3.9 billion during the month, claiming the No. 3 spot on the top performers list. The Vanguard Short-Term Bond ETF (BSV) had the second-largest inflows of any fixed income ETF in May, pulling in $3.3 billion, while the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) and the iShares iBoxx USD High Yield Corporate Bond ETF (HYG) gained $2.7 billion and $2.6 billion, respectively. And the iShares 20+ Year Treasury Bond ETF (TLT) added $2.3 billion.  

The three S&P 500 ETFs represented the top gainers in May for equities, with the iShares Core S&P 500 ETF (IVV) gaining more than any other ETF, at $7.5 billion. The SPDR S&P 500 ETF Trust (SPY) claimed the No. 2 spot, with an addition of $6 billion, while the Vanguard S&P 500 ETF (VOO) pulled in $3.8 billion. 

Also among the top-gaining ETFs for the month, the iShares Core High Dividend ETF (HDV) gained $2.9 billion, and the iShares MSCI Emerging Markets Min Vol Factor ETF (EEMV) added $2.3 billion. The presence of those two funds in the top 10 suggests investors are looking for income and diversification at a time when the broad U.S. equity space is flirting with a bear market.  

Stepping Away From Sectors  

Three sector ETF were among the 10 ETFs that saw the most outflows during the month of May. The Financial Select Sector SPDR Fund (XLF) lost more than any other ETF, bleeding $3.9 billion. Meanwhile, the Vanguard Health Care ETF (VHT) and the iShares U.S. Energy ETF (IYE) claimed the Nos. nine and 10 spots, with losses of $903 million and $821 million, respectively.  

Interestingly, despite U.S. fixed income seeing strong inflows, the No. 2 fund for outflows in May was the Schwab U.S. TIPS ETF (SCHP), which saw a drain of $2.2 billion. It was followed by the iShares MSCI USA Value Factor ETF (VLUE), which lost $1.9 billion during the month. And even though HDV was one of the top funds for inflows in May, the SPDR S&P Dividend ETF (SDY) saw outflows of $1.9 billion during the same period.  

Meanwhile, the SPDR Gold Trust (GLD) and the iShares GSCI Commodity Dynamic Roll Strategy ETF (COMT) came in sixth and seventh for redemptions in May, with losses of $1.5 billion and $1.4 billion, respectively. With inflation expected to remain high for some time, the move out of two key commodity ETFs suggests investors don’t necessarily see them as the best hedges against it in the current environment. 

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

Top Gainers (May 2022)

Top Gainers (Year-to-Date)

Biggest Losers (May 2022)

Biggest Losers (Year-to-Date)

Asset Classes (May 2022)

Asset Classes (Year-to-Date)

May 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.