Vanilla Equity ETFs Dominated Investor Demand In Oct

November 02, 2016

Investors poured $20 billion into U.S.-listed ETFs in October, the bulk of which landed in vanilla-type strategies such as U.S. large-cap equity funds PowerShares QQQ Trust (QQQ), the iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 (SPY).

Together, these three ETFs alone raked in more than $5.3 billion, making them the most popular ETFs last month.

The appetite for equity also extended into international funds. The Vanguard FTSE Developed Markets ETF (VEA) and the Vanguard FTSE Emerging Markets ETF (VWO) were among the month’s top creations. In all, U.S. and international equity ETFs raked in more than $14 billion in October, putting year-to-date asset gathering for these two equity classes at a combined $70 billion.

Shifting Demand

From a U.S. sector perspective, investors shifted their demand from real estate and consumer staples—ETFs in these segments bled a combined $3-billion-plus last month—and pouring money into financials, technology and energy ETFs, according to FactSet data.

Real estate, which just became its own sector under GICS in September, is now the second-worst-performing S&P 500 sector this year, second only to health care, with a 2.7% decline.

What wasn’t popular in October were fixed-income ETFs invested in corporate bonds. The iShares iBoxx $ High Yield (HYG) and the SPDR Barclays High Yield (JNK) bled more than $600 million each, while the iShares iBoxx $ Investment Grade (LQD) lost $1.6 billion, FactSet reported.

As a whole, the U.S. ETF market has now seen roughly $177 billion in net inflows year-to-date, staying on pace with previous years’ asset growth, but not breaking any records thus far.

Contact Cinthia Murphy at [email protected]

Top Gainers (October 2016)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM YTD 2016 Net Flows($,M)
QQQ PowerShares QQQ Trust Invesco PowerShares 2,000.30 40,745.11 5.16% -2,609.20
IVV iShares Core S&P 500 ETF BlackRock 1,759.02 79,884.38 2.25% 6,692.57
SPY SPDR S&P 500 ETF Trust State Street Global Advisors 1,627.75 195,851.02 0.84% 1,269.88
VEA Vanguard FTSE Developed Markets ETF Vanguard 1,419.73 37,899.16 3.89% 8,552.20
VWO Vanguard FTSE Emerging Markets ETF Vanguard 1,222.49 44,471.69 2.83% 5,197.73
IEFA iShares Core MSCI EAFE ETF BlackRock 985.57 13,643.15 7.79% 4,143.18
IEMG iShares Core MSCI Emerging Markets ETF BlackRock 960.23 17,836.38 5.69% 6,471.11
AGG iShares Core U.S. Aggregate Bond ETF BlackRock 815.13 42,019.15 1.98% 10,589.06
XLF Financial Select Sector SPDR Fund State Street Global Advisors 756.57 13,129.34 6.11% -3,717.21
XLE Energy Select Sector SPDR Fund State Street Global Advisors 752.46 15,265.90 5.18% 1,909.43

 

Top Gainers (Year-to-Date)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM October 2016 Net Flows($,M)
GLD SPDR Gold Trust State Street Global Advisors 11,884.57 38,566.56 44.54% -215.88
AGG iShares Core U.S. Aggregate Bond ETF BlackRock 10,589.06 42,019.15 33.69% 815.13
VOO Vanguard S&P 500 Index Fund Vanguard 9,100.61 51,334.38 21.55% 708.04
VEA Vanguard FTSE Developed Markets ETF Vanguard 8,552.20 37,899.16 29.14% 1,419.73
EEM iShares MSCI Emerging Markets ETF BlackRock 6,720.12 31,264.77 27.38% 0.00
IVV iShares Core S&P 500 ETF BlackRock 6,692.57 79,884.38 9.14% 1,759.02
IEMG iShares Core MSCI Emerging Markets ETF BlackRock 6,471.11 17,836.38 56.94% 960.23
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF BlackRock 5,504.61 30,899.97 21.68% -1,682.58
USMV iShares Edge MSCI Min Vol USA ETF BlackRock 5,427.52 13,140.27 70.37% -889.73
VWO Vanguard FTSE Emerging Markets ETF Vanguard 5,197.73 44,471.69 13.23% 1,222.49

 

Biggest Losers (October 2016)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM YTD 2016 Net Flows($,M)
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF BlackRock -1,682.58 30,899.97 -5.16% 5,504.61
USMV iShares Edge MSCI Min Vol USA ETF BlackRock -889.73 13,140.27 -6.34% 5,427.52
IYR iShares U.S. Real Estate ETF BlackRock -765.41 3,893.93 -16.43% -446.25
VNQ Vanguard REIT Index Fund Vanguard -692.65 31,728.39 -2.14% 4,332.88
HYG iShares iBoxx $ High Yield Corporate Bond ETF BlackRock -641.94 16,365.76 -3.77% 634.76
JNK SPDR Barclays High Yield Bond ETF State Street Global Advisors -619.31 11,822.51 -4.98% 1,385.55
XLP Consumer Staples Select Sector SPDR Fund State Street Global Advisors -618.19 8,118.17 -7.08% -438.50
IWB iShares Russell 1000 ETF BlackRock -506.70 15,501.34 -3.17% -139.31
TLT iShares 20+ Year Treasury Bond ETF BlackRock -491.91 6,440.96 -7.10% -161.02
EZU iShares MSCI Eurozone ETF BlackRock -479.43 7,044.85 -6.37% -6,768.46

 

Biggest Losers (Year-to-Date)

Ticker Name Issuer Net Flows ($,mm) AUM ($M) % of AUM October 2016 Net Flows($,M)
HEDJ WisdomTree Europe Hedged Equity Fund WisdomTree -7,600.69 9,022.72 -45.72% -261.68
EZU iShares MSCI Eurozone ETF BlackRock -6,768.46 7,044.85 -49.00% -479.43
DXJ WisdomTree Japan Hedged Equity Fund WisdomTree -5,829.14 7,139.11 -44.95% -33.94
EWJ iShares MSCI Japan ETF BlackRock -5,552.64 14,307.54 -27.96% 148.69
DBEF Deutsche X-trackers MSCI EAFE Hedged Equity ETF Deutsche Bank -5,046.13 7,633.92 -39.80% -308.64
XLF Financial Select Sector SPDR Fund State Street Global Advisors -3,717.21 13,129.34 -22.07% 756.57
VGK Vanguard FTSE Europe ETF Vanguard -3,549.33 10,559.63 -25.16% -208.24
QQQ PowerShares QQQ Trust Invesco PowerShares -2,609.20 40,745.11 -6.02% 2,000.30
EWG iShares MSCI Germany ETF BlackRock -2,306.62 3,481.93 -39.85% -102.16
IWF iShares Russell 1000 Growth ETF BlackRock -2,293.83 29,867.22 -7.13% 144.44

 

Asset Classes (October 2016)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 8,611.02 1,304,036.15 0.66%
International Equity 5,488.36 505,566.49 1.09%
U.S. Fixed Income 3,833.78 392,863.61 0.98%
International Fixed Income 1,150.09 40,810.08 2.82%
Commodities -148.24 71,768.01 -0.21%
Currency 215.88 3,124.64 6.91%
Leveraged 764.94 23,724.45 3.22%
Inverse -460.23 20,060.01 -2.29%
Asset Allocation 105.05 6,351.20 1.65%
Alternatives 475.06 4,170.19 11.39%
Total: 20,035.73 2,372,474.84 0.84%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 62,510.41 1,187,406.29 5.26%
International Equity 4,386.72 461,798.58 0.95%
U.S. Fixed Income 71,472.94 363,241.24 19.68%
International Fixed Income 11,306.44 33,887.92 33.36%
Commodities 17,140.35 63,040.26 27.19%
Currency -264.84 3,021.05 -8.77%
Leveraged 80.35 22,621.76 0.36%
Inverse 6,190.84 19,034.48 32.52%
Asset Allocation 127.26 5,654.82 2.25%
Alternatives 3,094.52 3,664.19 84.45%
Total: 176,044.99 2,163,370.60 8.14%

 

October 2016 League Table

Issuer Net Flows ($,M) AUM ($,M) % of AUM YTD 2016 Net Flows($,M)
BlackRock 4,894.94 918,788.17 0.53% 67,973.86
Vanguard 8,885.23 567,226.19 1.57% 71,944.80
State Street Global Advisors 442.03 449,409.74 0.10% 12,998.89
Invesco PowerShares 2,532.11 103,725.46 2.44% 6,041.22
Charles Schwab 937.45 53,227.82 1.76% 11,784.75
First Trust 58.34 39,481.86 0.15% -3,424.88
WisdomTree -85.68 37,652.13 -0.23% -12,950.89
Van Eck 371.72 30,455.30 1.22% 6,733.10
Guggenheim 454.14 29,146.98 1.56% 179.84
ProShares 48.50 27,071.38 0.18% 6,948.36
Deutsche Bank -689.40 13,230.57 -5.21% -6,823.36
ALPS 427.90 11,986.36 3.57% 1,521.55
PIMCO 42.88 11,983.52 0.36% 935.49
Northern Trust 187.38 10,323.72 1.82% 2,154.39
Direxion 540.01 10,082.09 5.36% 840.54
Barclays Capital 455.73 6,762.52 6.74% 1,808.78
UBS 341.50 6,259.96 5.46% 1,265.90
Credit Suisse -186.70 5,294.74 -3.53% 889.24
US Commodity Funds -390.14 4,777.87 -8.17% -195.58
JPMorgan 36.43 4,602.27 0.79% 596.97
Fidelity 33.88 4,267.16 0.79% 297.47
Global X 71.67 3,788.50 1.89% 420.27
Goldman Sachs 71.92 2,589.35 2.78% 1,465.78
ETF Securities 44.84 2,376.20 1.89% 323.38
IndexIQ 42.12 2,148.31 1.96% 605.83
Exchange Traded Concepts 35.89 2,137.56 1.68% 200.38
AdvisorShares 2.63 1,148.24 0.23% 104.13
OppenheimerFunds 66.64 1,117.95 5.96% 145.57
Millington Securities Inc -56.88 1,107.14 -5.14% -379.81
Columbia 18.97 1,028.23 1.84% -15.36
ETF Managers Group -1.81 896.34 -0.20% -156.81
Pacer Financial 9.00 683.20 1.32% 67.66
Victory Capital Management 51.77 643.14 8.05% 326.63
John Hancock 6.88 556.60 1.24% 450.48
Virtus 2.80 453.72 0.62% 107.19
The Principal Financial Group 169.68 451.28 37.60% 448.84
Highland Capital Management -51.99 434.11 -11.98% 70.08
Swedish Export Credit 6.77 411.30 1.64% -57.20
FQF Trust 14.68 374.04 3.92% 323.67
Franklin ETF Trust 4.88 316.80 1.54% 16.80
KraneShares -0.03 308.67 -0.01% 58.87
Cambria 5.66 297.30 1.91% -30.21
CitiGroup 0.00 244.25 0.00% 0.00
Teucrium 15.46 168.20 9.19% 85.57
Merk 5.80 158.18 3.67% 67.00
Alpha Architect 2.47 134.37 1.84% 58.34
Arrow Investment Advisors 0.00 115.70 0.00% -7.94
Legg Mason 12.28 103.63 11.85% 88.59
Lattice Strategies 0.25 98.65 0.25% 17.81
Morgan Stanley 0.00 94.42 0.00% -6.21
Recon Capital 1.12 82.94 1.35% 20.81
Janus 0.94 82.31 1.14% -14.93
ARK 5.36 62.10 8.63% 13.88
Nuveen 0.00 49.8 0.00% 0.00
Elkhorn 53.24 48.61 109.53% 64.40
US Global Investors 0.00 43.76 0.00% -4.77
Reality Shares 0.04 42.93 0.10% -3.59
Montage Managers 0.00 38.05 0.00% 13.51
Academy Funds 0.00 35.54 0.00% -24.55
AlphaMark Advisors 0.00 23.74 0.00% -6.76
Aptus Capital Advisors 2.50 20.67 12.09% 18.99
Validea Capital Management 0.00 20.64 0.00% -2.35
Diamond Hill 0.00 16.06 0.00% -0.23
Royal Bank of Canada 0.00 15.24 0.00% -2.24
Renaissance Capital 0.00 14.42 0.00% -6.42
Natixis 0.00 14.00 0.00% 0.00
Strategy Shares 0.00 10.91 0.00% -1.74
CSOP 0.00 8.82 0.00% -15.28
LocalShares -0.00 8.44 -0.00% -1.35
Amplify 1.36 5.33 25.56% 1.36
USCF Advisers 0.00 3.73 0.00% -1.53
TrimTabs Asset Management 1.87 3.65 51.21% 1.87
AlphaClone 0.00 3.09 0.00% 0.89

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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