$20B Flows Into ETFs In Strong Week

The Fed’s taper announcement didn’t dampen bullish sentiment.

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Reviewed by: Dan Mika
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Edited by: Dan Mika

The U.S.-listed ETF industry added just shy of a net $20 billion in new assets between Oct. 29 and Nov. 4, as the leading equity indexes continue to break new highs.

The decline from last week’s $26 billion in inflows was primarily due to flows into U.S. equity funds falling by approximately $8 billion, and was partially offset by an additional $1 billion coming into international equity ETFs, according to ETF.com data provider FactSet.

Taper Tantrum? What Taper Tantrum?

The Federal Reserve signaled the winding down of its pandemic-era program of buying $120 billion per month in corporate bonds and mortgage-backed securities well in advance of the announcement after its meeting this week, and markets were unfazed.

The Dow Jones Industrial Average hit another record high of 36,157 points on Wednesday, while the S&P 500 closed at 4,699 points on Thursday.

The broad market funds continued to dominate inflows on the week, with the SPDR S&P 500 ETF Trust (SPY) leading, with $3.6 billion added. Following behind were the iShares Core S&P 500 ETF (IVV), the Vanguard Total Stock Market ETF (VTI) and the Vanguard S&P 500 ETF (VOO), which added $1.5 billion, $1.9 billion and $1.2 billion, respectively.

A handful of sector-specific ETFs also appeared among the top 10 funds by inflow during the week. The Financial Select Sector SPDR Fund (XLF) added just under $1 billion as the Fed gave more hints on when it would consider a rate increase. The Health Care Select Sector SPDR Fund (XLV) and SPDR S&P Biotech ETF (XBI) added $920 million and $537 million,  respectively.

Topping the outflow leaderboard was the SPDR S&P Dividend ETF (SDY), which lost more than $1 billion to redemptions in the period.

Diverging Bond Markets

U.S. fixed income ETFs added $2.9 billion during the week, but with different directions for some of the most popular bond funds.

The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) continued its streak by losing $1 billion during the period, as the Bank of America corporate bond yield index spent its first full week above 2.1% since early June. The iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) fared better, losing only $412 million during the period.

The iShares 7-10 Year Treasury Bond ETF (IEF) found itself gaining $950 million during the week, and the rush into Treasury-protected bond funds continued, with the iShares TIPS Bond ETF (TIP) adding $602 million.

The Vanguard Total Bond Market ETF (BND) lost $478 million during the week, while the iShares Core U.S. Aggregate Bond ETF (AGG) added $641 million, which is interesting given how similar they are.

Leveraged Tech Suffers

Although investors pulled $1.4 billion out of the leveraged ETF asset class during the week, the majority of losses were concentrated in two funds.

The ProShares UltraPro QQQ (TQQQ) lost $884 million during the week, while the Direxion Daily Semiconductor Bull 3X Shares (SOXL) lost $574 million.

 

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

 

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust3,681.44424,881.910.87%
IVViShares Core S&P 500 ETF1,480.86321,270.060.46%
VTIVanguard Total Stock Market ETF1,189.94288,465.520.41%
VOOVanguard S&P 500 ETF1,160.51272,341.660.43%
XLFFinancial Select Sector SPDR Fund998.2946,349.632.15%
IEFiShares 7-10 Year Treasury Bond ETF950.3915,178.506.26%
XLVHealth Care Select Sector SPDR Fund919.4432,968.062.79%
AGGiShares Core U.S. Aggregate Bond ETF641.3289,757.260.71%
TIPiShares TIPS Bond ETF602.7736,236.471.66%
XBISPDR S&P Biotech ETF537.937,986.386.74%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SDYSPDR S&P Dividend ETF-1,042.6820,178.41-5.17%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-1,039.8018,937.57-5.49%
TQQQProShares UltraPro QQQ-884.4618,236.82-4.85%
IWBiShares Russell 1000 ETF-844.8631,462.45-2.69%
SOXLDirexion Daily Semiconductor Bull 3X Shares-573.944,316.24-13.30%
BNDVanguard Total Bond Market ETF-477.8182,201.20-0.58%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF-412.2137,763.90-1.09%
GLDSPDR Gold Trust-364.3855,300.47-0.66%
BBJPJPMorgan BetaBuilders Japan ETF-345.197,932.74-4.35%
PKWInvesco BuyBack Achievers ETF-311.961,565.60-19.93%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity15,147.624,253,693.000.36%
International Equity2,202.151,329,509.930.17%
U.S. Fixed Income2,881.621,095,099.990.26%
International Fixed Income469.30149,423.560.31%
Commodities60.72137,901.330.04%
Currency89.083,296.422.70%
Leveraged-1,430.9572,741.66-1.97%
Inverse266.9012,334.622.16%
Asset Allocation118.1619,519.710.61%
Alternatives130.697,071.611.85%
Total:19,935.277,080,591.830.28%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity367,853.854,253,693.008.65%
International Equity183,390.281,329,509.9313.79%
U.S. Fixed Income144,839.781,095,099.9913.23%
International Fixed Income30,053.71149,423.5620.11%
Commodities-3,631.86137,901.33-2.63%
Currency1,425.133,296.4243.23%
Leveraged763.6072,741.661.05%
Inverse6,439.4712,334.6252.21%
Asset Allocation4,616.1719,519.7123.65%
Alternatives3,322.657,071.6146.99%
Total:739,072.797,080,591.8310.44%

 

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
BTCRVolt Crypto Industry Revolution and Tech ETF15.70%155,2121,565.60
RIGZViridi Cleaner Energy Crypto-Mining & Semiconductor ETF14.82%99,79317.11
VCARSimplify Volt RoboCar Disruption and Tech ETF13.95%242,6316.28
BKCHGlobal X Blockchain ETF12.40%647,91991.56
BITQBitwise Crypto Industry Innovators ETF12.30%731,599124.51
CRPTFirst Trust SkyBridge Crypto Industry and Digital Economy ETF11.97%291,94832.37
URNMNorth Shore Global Uranium Mining ETF10.44%2,112,010901.03
IGNiShares North American Tech-Multimedia Networking ETF10.43%220,805134.28
DAPPVanEck Digital Transformation ETF9.96%348,72474.71
URAGlobal X Uranium ETF9.94%9,926,3431,396.40

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
BDRYBreakwave Dry Bulk Shipping ETF197.14%-30.69%52.10
FCGFirst Trust Natural Gas ETF114.65%1.31%518.41
PXEInvesco Dynamic Energy Exploration & Production ETF110.72%0.77%142.03
URNMNorth Shore Global Uranium Mining ETF108.18%10.44%901.03
JJTiPath Series B Bloomberg Tin Subindex Total Return ETN107.59%0.52%16.52
UNGUnited States Natural Gas Fund LP100.22%5.31%505.25
GAZiPath Series B Bloomberg Natural Gas Subindex Total Return ETN94.60%5.23%15.01
PXIInvesco DWA Energy Momentum ETF93.93%0.72%100.58
PSCEInvesco S&P SmallCap Energy ETF88.17%1.23%144.11
XOPSPDR S&P Oil & Gas Exploration & Production ETF87.59%0.99%4,169.01

 

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.

Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.