$20B Flows Into ETFs In Strong Week
The Fed’s taper announcement didn’t dampen bullish sentiment.
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 $574 million.
For a full list of this week’s top ETF inflows and outflows, see the tables below:
Top 10 Creations (All ETFs)
Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
SPY | SPDR S&P 500 ETF Trust | 3,681.44 | 424,881.91 | 0.87% |
IVV | iShares Core S&P 500 ETF | 1,480.86 | 321,270.06 | 0.46% |
VTI | Vanguard Total Stock Market ETF | 1,189.94 | 288,465.52 | 0.41% |
VOO | Vanguard S&P 500 ETF | 1,160.51 | 272,341.66 | 0.43% |
XLF | Financial Select Sector SPDR Fund | 998.29 | 46,349.63 | 2.15% |
IEF | iShares 7-10 Year Treasury Bond ETF | 950.39 | 15,178.50 | 6.26% |
XLV | Health Care Select Sector SPDR Fund | 919.44 | 32,968.06 | 2.79% |
AGG | iShares Core U.S. Aggregate Bond ETF | 641.32 | 89,757.26 | 0.71% |
TIP | iShares TIPS Bond ETF | 602.77 | 36,236.47 | 1.66% |
XBI | SPDR S&P Biotech ETF | 537.93 | 7,986.38 | 6.74% |
Top 10 Redemptions (All ETFs)
Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
SDY | SPDR S&P Dividend ETF | -1,042.68 | 20,178.41 | -5.17% |
HYG | iShares iBoxx USD High Yield Corporate Bond ETF | -1,039.80 | 18,937.57 | -5.49% |
TQQQ | ProShares UltraPro QQQ | -884.46 | 18,236.82 | -4.85% |
IWB | iShares Russell 1000 ETF | -844.86 | 31,462.45 | -2.69% |
SOXL | Direxion Daily Semiconductor Bull 3X Shares | -573.94 | 4,316.24 | -13.30% |
BND | Vanguard Total Bond Market ETF | -477.81 | 82,201.20 | -0.58% |
LQD | iShares iBoxx USD Investment Grade Corporate Bond ETF | -412.21 | 37,763.90 | -1.09% |
GLD | SPDR Gold Trust | -364.38 | 55,300.47 | -0.66% |
BBJP | JPMorgan BetaBuilders Japan ETF | -345.19 | 7,932.74 | -4.35% |
PKW | Invesco BuyBack Achievers ETF | -311.96 | 1,565.60 | -19.93% |
ETF Weekly Flows By Asset Class
Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
U.S. Equity | 15,147.62 | 4,253,693.00 | 0.36% |
International Equity | 2,202.15 | 1,329,509.93 | 0.17% |
U.S. Fixed Income | 2,881.62 | 1,095,099.99 | 0.26% |
International Fixed Income | 469.30 | 149,423.56 | 0.31% |
Commodities | 60.72 | 137,901.33 | 0.04% |
Currency | 89.08 | 3,296.42 | 2.70% |
Leveraged | -1,430.95 | 72,741.66 | -1.97% |
Inverse | 266.90 | 12,334.62 | 2.16% |
Asset Allocation | 118.16 | 19,519.71 | 0.61% |
Alternatives | 130.69 | 7,071.61 | 1.85% |
Total: | 19,935.27 | 7,080,591.83 | 0.28% |
Asset Classes (Year-to-Date)
Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
U.S. Equity | 367,853.85 | 4,253,693.00 | 8.65% |
International Equity | 183,390.28 | 1,329,509.93 | 13.79% |
U.S. Fixed Income | 144,839.78 | 1,095,099.99 | 13.23% |
International Fixed Income | 30,053.71 | 149,423.56 | 20.11% |
Commodities | -3,631.86 | 137,901.33 | -2.63% |
Currency | 1,425.13 | 3,296.42 | 43.23% |
Leveraged | 763.60 | 72,741.66 | 1.05% |
Inverse | 6,439.47 | 12,334.62 | 52.21% |
Asset Allocation | 4,616.17 | 19,519.71 | 23.65% |
Alternatives | 3,322.65 | 7,071.61 | 46.99% |
Total: | 739,072.79 | 7,080,591.83 | 10.44% |
Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded
Ticker | Name | Weekly Performance | Weekly Volume | AUM ($, mm) |
BTCR | Volt Crypto Industry Revolution and Tech ETF | 15.70% | 155,212 | 1,565.60 |
RIGZ | Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF | 14.82% | 99,793 | 17.11 |
VCAR | Simplify Volt RoboCar Disruption and Tech ETF | 13.95% | 242,631 | 6.28 |
BKCH | Global X Blockchain ETF | 12.40% | 647,919 | 91.56 |
BITQ | Bitwise Crypto Industry Innovators ETF | 12.30% | 731,599 | 124.51 |
CRPT | First Trust SkyBridge Crypto Industry and Digital Economy ETF | 11.97% | 291,948 | 32.37 |
URNM | North Shore Global Uranium Mining ETF | 10.44% | 2,112,010 | 901.03 |
IGN | iShares North American Tech-Multimedia Networking ETF | 10.43% | 220,805 | 134.28 |
DAPP | VanEck Digital Transformation ETF | 9.96% | 348,724 | 74.71 |
URA | Global X Uranium ETF | 9.94% | 9,926,343 | 1,396.40 |
Top 10 YTD Performers
Ticker | Name | YTD Performance | Weekly Performance | AUM ($, mm) |
BDRY | Breakwave Dry Bulk Shipping ETF | 197.14% | -30.69% | 52.10 |
FCG | First Trust Natural Gas ETF | 114.65% | 1.31% | 518.41 |
PXE | Invesco Dynamic Energy Exploration & Production ETF | 110.72% | 0.77% | 142.03 |
URNM | North Shore Global Uranium Mining ETF | 108.18% | 10.44% | 901.03 |
JJT | iPath Series B Bloomberg Tin Subindex Total Return ETN | 107.59% | 0.52% | 16.52 |
UNG | United States Natural Gas Fund LP | 100.22% | 5.31% | 505.25 |
GAZ | iPath Series B Bloomberg Natural Gas Subindex Total Return ETN | 94.60% | 5.23% | 15.01 |
PXI | Invesco DWA Energy Momentum ETF | 93.93% | 0.72% | 100.58 |
PSCE | Invesco S&P SmallCap Energy ETF | 88.17% | 1.23% | 144.11 |
XOP | SPDR S&P Oil & Gas Exploration & Production ETF | 87.59% | 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.