2022 ETF Inflows Slumped Amid Market Rout

Inflows tumbled as rate hikes, war and inflation sent investors scurrying for safety.

ShubhamSaharan_white_bg
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Reviewed by: Shubham Saharan
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Edited by: Shubham Saharan

Volatile markets and a hawkish Federal Reserve took their toll on exchange-traded funds last year, as investors added 32% less to ETFs than they did the year before.  

ETFs brought in $614 billion in 2022 compared with the record $900 billion the year prior, according to ETF.com data. Soaring interest rates, inflation at 40-year highs and geopolitical turmoil battered investor sentiment and pulled markets down.  

The S&P 500 notched a nearly 20% annual loss—its worst since 2008—while the Nasdaq tumbled 33%. Meanwhile, bonds endured their worst year in history. 

Still, the $614 billion was the second-best year of inflows to date for ETFs, as gyrating markets caused investors to flock to passively managed vehicles. Comparatively, mutual funds, through mid-December, shed over $950 billion, according to Bloomberg data, trumping the $13 billion that exited last year and marking the greatest outflow on record. Some of that money has moved to ETFs. 

Fixed income funds emerged as a bright spot for the year, as the asset class’ inflows rose 8% from the previous year to $189 billion as investors wagered fixed income would be a safer haven over equities.

Funds pulling in big sums of investor money included the Vanguard Total Bond Market ETF (BND) and the iShares 20+ Year Treasury Bond ETF (TLT), which collectively posted $29 billion in gains last year.  

Equity funds totals dropped 38%, falling to almost $285 billion from 2021’s $461 billion. Funds bringing in the most money included the Vanguard S&P 500 ETF (VOO), the Vanguard Total Stock Market ETF (VTI) and the iShares Core S&P 500 ETF (IVV), which collectively brought in nearly $88 billion, according to ETF.com data.  

On the other side of the ledger, the SPDR S&P 500 ETF Trust (SPY), the largest U.S.-listed ETF, shed $12 billion last year, according to ETF.com data.  

 

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

 

Top Gainers (Year-to-Date)

TickerNameIssuerNet Flows ($,mm)AUM ($M)% of AUMDecember 2022 Net Flows($,M)
VOOVanguard S&P 500 ETFVanguard39,961.97258,366.6215.47%941.58
VTIVanguard Total Stock Market ETFVanguard25,916.47256,768.0710.09%2,344.55
IVViShares Core S&P 500 ETFBlackrock21,549.64285,473.837.55%-2,985.82
SCHDSchwab U.S. Dividend Equity ETFCharles Schwab15,400.7944,191.0034.85%1,571.73
TLTiShares 20+ Year Treasury Bond ETFBlackrock15,272.4026,672.9257.26%290.05
BNDVanguard Total Bond Market ETFVanguard14,195.3984,734.8916.75%2,151.21
BILSPDR Bloomberg 1-3 Month T-Bill ETFState Street Global Advisors12,815.4226,391.2048.56%288.00
JEPIJPMorgan Equity Premium Income ETFJPMorgan Chase12,762.7417,388.6973.40%1,347.90
TQQQProShares UltraPro QQQProShares12,075.959,856.45122.52%1,540.07
VTVVanguard Value ETFVanguard11,083.7098,394.8611.26%1,452.13

 

Biggest Losers (Year-to-Date)

TickerNameIssuerNet Flows ($,mm)AUM ($M)% of AUMDecember 2022 Net Flows($,M)
SPYSPDR S&P 500 ETF TrustState Street Global Advisors-12,445.29353,479.16-3.52%-3,468.25
TIPiShares TIPS Bond ETFBlackrock-9,606.0423,004.62-41.76%-1,510.79
XLFFinancial Select Sector SPDR FundState Street Global Advisors-7,293.9431,008.86-23.52%-355.42
VLUEiShares MSCI USA Value Factor ETFBlackrock-6,367.507,468.41-85.26%-182.66
BBEUJPMorgan BetaBuilders Europe ETFJPMorgan Chase-4,960.503,137.25-158.12%-378.80
MINTPIMCO Enhanced Short Maturity Active ETFPIMCO-4,523.418,811.89-51.33%-843.35
SCHPSchwab U.S. TIPS ETFCharles Schwab-4,200.9613,708.45-30.65%-164.01
PFFiShares Preferred and Income Securities ETFBlackrock-3,337.0212,895.85-25.88%-381.17
VGKVanguard FTSE Europe ETFVanguard-3,029.8015,053.07-20.13%71.24
FALNiShares Fallen Angels USD Bond ETFBlackrock-2,696.071,569.69-171.76%5.22

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity284,562.843,789,034.777.51%
International Equity99,205.731,138,106.518.72%
U.S. Fixed Income189,422.601,154,134.0416.41%
International Fixed Income7,817.84137,795.545.67%
Commodities-3,928.18130,146.36-3.02%
Currency1,436.753,716.2038.66%
Leveraged22,541.2843,033.0352.38%
Inverse9,046.1424,610.1136.76%
Asset Allocation1,187.0416,730.367.10%
Alternatives2,754.388,850.7831.12%
Total:614,046.426,446,157.699.53%

 

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.

Shubham Saharan is a markets reporter at etf.com. Before joining the company, she reported for Bloomberg and the Financial Times. Saharan is a graduate of Barnard College of Columbia University.