Weekly ETF Flows: Bonds Fuel Net Outflows

June 07, 2013

ETF assets, led by bond redemptions and a falling S&P, dropped to $1.484 trillion in the week ended Thursday, June 6.

Investors pulled a total of $7.67 billion out of ETFs in the past week, amid redemptions on equities and especially fixed-income strategies during a week when many investors began bracing for the beginning of the end of the Federal Reserve's extraordinary easy-money monetary policies in the wake of the market crash of 2008.

Total U.S.-listed ETF assets fell in the five-day period ended Thursday, June 6 by 2.2 percent to $1.484 trillion from $1.518 trillion in the prior week, according to data compiled by IndexUniverse. The S&P 500 fell 31.85 points, or 1.9 percent, closing yesterday at 1,622.56 over that same period and fueling a good part of the asset drop.

While two equities funds topped the weekly redemptions list, most of last week's most unpopular funds were fixed-income strategies, beginning with the iShares Barclays 3-7 Year Treasury Bond Fund (NYSEArca: IEI), which had outflows of $1.37 billion, enough to make it the No. 3 fund on IndexUniverse's "Top 10 Redemptions" list.

It's worth noting that a month ago, IEI was among the more popular funds, which at the time was seen as emblematic of a growing comfort among investors that the Fed was truly going to take its time in ending its "quantitative easing" and in unwinding its unprecedented monetary accommodation. But scarcely a month later, all that sentiment was reversing, and IEI's outflows clearly suggest surging views that QE might start ending this year.

Equity funds focused on the developing world were also falling prey to those views that the end of the Fed's accommodation could be coming sooner rather than later, with the iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM) bleeding $2.59 billion in the past week.

On the flip side, last week's most popular fund was the ProShares Ultra Russell 2000 ETF (NYSEArca: UWM). It pulled in more than $1 billion, which fueled a more than eightfold jump in assets under management.

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
UWM ProShares Ultra Russell 2000 1,070.51 1,216.45 733.50%
QQQ PowerShares QQQ 1,051.92 35,453.21 3.06%
EWG iShares MSCI Germany 678.41 3,679.47 22.61%
IWM iShares Russell 2000 575.34 21,578.09 2.74%
VTI Vanguard Total Stock Market 450.41 31,228.91 1.46%
DIA SPDR Dow Jones Industrial Average Trust 414.17 12,719.70 3.37%
EWU iShares MSCI United Kingdom 411.41 2,073.46 24.75%
SHV iShares Barclays Short Treasury Bond 396.83 4,541.48 9.57%
XLP Consumer Staples Select SPDR 377.42 6,906.87 5.78%
VOO Vanguard S&P 500 300.76 9,923.99 3.13%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 -3,056.67 134,956.87 -2.21%
EEM iShares MSCI Emerging Markets -2,589.96 39,047.22 -6.22%
IEI iShares Barclays 3-7 Year Treasury Bond -1,370.21 2,486.55 -35.53%
LQD iShares iBoxx $ Investment Grade Corporate Bond -892.27 21,719.01 -3.95%
UST ProShares Ultra 7-10 Year Treasury -865.38 268.98 -76.29%
HYG iShares iBoxx $ High Yield Corporate Bond -798.06 14,112.80 -5.35%
VWO Vanguard FTSE Emerging Markets -662.87 53,775.29 -1.22%
TIP iShares Barclays TIPS Bond -662.30 18,004.01 -3.55%
EWH iShares MSCI Hong Kong -645.89 2,780.75 -18.85%
JNK SPDR Barclays High Yield Bond -494.13 10,146.10 -4.64%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 593.64 747,312.93 0.08%
International Equity -4,025.76 347,162.80 -1.16%
U.S. Fixed Income -4,230.92 233,739.14 -1.81%
International Fixed Income -262.63 27,593.95 -0.95%
Commodities -260.55 82,866.66 -0.31%
Currency -49.92 2,419.86 -2.06%
Leveraged 438.14 15,877.48 2.76%
Inverse 319.93 19,930.86 1.61%
Asset Allocation -5.51 3,595.98 -0.15%
Alternatives -189.07 3,434.80 -5.50%
Total: -7,672.66 1,483,934.46 -0.52%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
JKF iShares Morningstar Large Value 89,084 2,475,817 555.84%
HDG ProShares Hedge Replication 34,370 839,027 488.24%
EUSA iShares MSCI USA 21,091 500,438 474.55%
IPFF iShares S&P International Preferred Stock 104,889 2,355,677 449.17%
CYB WisdomTree Chinese Yuan 66,057 1,201,386 363.74%
SJB ProShares Short High Yield 71,206 1,157,201 325.03%
PXLG PowerShares Fundamental Pure Large Growth 6,901 110,375 319.88%
ITA iShares Dow Jones U.S. Aerospace & Defense 10,850 169,309 312.09%
XLG Guggenheim Russell Top 50 Mega Cap 30,111 469,243 311.67%
BIL SPDR Barclays 1-3 Month T-Bill 600,052 9,192,956 306.41%

Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
CVOL C-Tracks Citi Volatility ETN 17.73% 29,635 1.93
GRN iPath Global Carbon ETN 9.49% 140,747 0.69
VIXY ProShares VIX Short-Term 7.71% 15,224,703 231.64
VIIX VelocityShares VIX Short Term ETN 7.59% 3,884,862 19.22
VXX iPath S&P 500 VIX Short-Term Futures ETN 7.57% 323,138,249 1,321.59
NIB iPath Dow Jones-UBS Cocoa Total Return ETN 7.04% 577,107 26.69
CHOC iPath Pure Beta Cocoa ETN 6.70% 18,229 5.25
TDX db X-trackers In-Target Date 5.86% 3,317 11.14
GLDX Global X Gold Explorers 5.54% 176,926 31.18
BAL iPath Dow Jones-UBS Cotton Total Return ETN 5.23% 130,684 36.86

Bottom 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
TUR iShares MSCI Turkey Investable Market -14.34% 5,258,113 731.58
DXJ WisdomTree Japan Hedged Equity -8.43% 70,850,533 9,155.59
DBJP db X-trackers MSCI Japan Hedged Equity -8.19% 878,207 102.69
EGPT Market Vectors Egypt -7.64% 324,135 30.39
ACCU AdvisorShares Accuvest Global Opportunities -7.21% 13,835 17.28
PIE PowerShares DWA Emerging Markets Technical Leaders -6.69% 2,925,952 503.17
THD iShares MSCI Thailand Capped Investable Market -6.55% 2,515,413 926.45
FJP First Trust Japan AlphaDex -6.40% 29,255 18.11
BBH Market Vectors Biotech -5.91% 962,676 304.74
BRAF Global X Brazil Financials -5.54% 2,175 3.67

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
TAN Guggenheim Solar 58.38 -4.40 110.81
QCLN First Trust NASDAQ Clean Edge Green Energy 51.17 -4.23 47.77
KWT Market Vectors Solar Energy 40.41 -3.53 15.18
GEX Market Vectors Global Alternative Energy 38.32 -4.32 71.82
IDXJ Market Vectors Indonesia Small Cap 38.00 -2.95 11.25
PBW PowerShares WilderHill Clean Energy 31.11 -4.48 169.06
BBH Market Vectors Biotech 29.42 -5.91 304.74
PBD PowerShares Global Clean Energy 27.91 -4.05 72.66
IBB iShares NASDAQ Biotechnology 27.66 -4.39 3,025.48
IAI iShares Dow Jones U.S. Broker-Dealers 27.08 -2.23 103.33

Bottom 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
CVOL C-Tracks Citi Volatility ETN -56.63 17.73 1.93
GLDX Global X Gold Explorers -41.40 5.54 31.18
GGGG Global X PURE Gold Miners -39.46 -1.09 3.23
SILJ PureFunds ISE Junior Silver (Small Cap Miners/Explorers) -38.81 0.57 1.87
VIIX VelocityShares VIX Short Term ETN -37.42 7.59 19.22
VXX iPath S&P 500 VIX Short-Term Futures ETN -37.32 7.57 1,321.59
GDXJ Market Vectors Junior Gold Miners -36.84 1.21 1,660.78
VIXY ProShares VIX Short-Term -36.74 7.71 231.64
SIL Global X Silver Miners -35.41 0.14 223.19
SLVP iShares MSCI Global Silver Miners -35.22 0.21 4.15

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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