ARK's Assets Surge, Bond ETFs Bleed

ARK's Assets Surge, Bond ETFs Bleed

Year-to-date ETF inflows topped $129 billion during the week.

sumit
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Senior ETF Analyst
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Reviewed by: Sumit Roy
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Edited by: Sumit Roy
Demand for ETFs steadied at a healthy level this week as stocks continued their march into record territory. On net, $11.5 billion flowed into U.S.-listed ETFs during the week ending Thursday, Feb. 18, pushing year-to-date inflows up to $129.3 billion, ahead of the $98.3 billion seen at this same time a year ago.

The weekly inflows went primarily into U.S. and international equity ETFs, which picked up $4.7 billion and $6.1 billion in new money, respectively.

Fixed income products didn’t fare nearly as well—inflows were negligible—with investors turned off by a swift sell-off in Treasuries and investment-grade corporate bonds. The 10-year Treasury bond yield touched a one-year high above 1.36% during the week (bond prices and yields move inversely) amid rising economic growth and inflation expectations.

ARK Assets Keep Piling Up

In terms of individual ETFs, the low-cost index fund mainstays and a handful of hot ARK ETFs continued to dominate the flows charts.

The Vanguard S&P 500 ETF (VOO), the SPDR S&P 500 ETF Trust (SPY) and the Vanguard FTSE Emerging Markets ETF (VWO) took the top three positions on the weekly inflows list.

At the same time, the ARK Fintech Innovation ETF (ARKF), the ARK Innovation ETF (ARKK) and the ARK Next Generation Internet ETF (ARKW) each picked up between $522 million and $746 million in new cash.

ARK is currently the seventh-largest ETF issuer, with just under $60 billion in total assets under management.

Its high-flying suite of ETFs sold off modestly this week, but each of the company’s funds is up substantially on a year-to-date basis.

Fixed Income Outflows

While equity ETFs generally remained well-supported this week, fixed income ETFs faced pressure, prompting some investors to lighten up their exposure to the asset class.

Several bond, gold and utility ETFs (considered a bond proxy by some) registered steep outflows during the week.

The iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), the iShares 20+Year Treasury Bond ETF (TLT) and the Utilities Select Sector SPDR Fund (XLU) took the top three positions on the weekly outflows list, with redemptions ranging from $782 million to $1.91 billion.

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

 

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
VOOVanguard S&P 500 ETF1,358.32199,295.620.68%
SPYSPDR S&P 500 ETF Trust1,071.67340,294.660.31%
VWOVanguard FTSE Emerging Markets ETF919.8581,990.801.12%
VTIVanguard Total Stock Market ETF839.15219,219.030.38%
IEFiShares 7-10 Year Treasury Bond ETF834.1114,265.555.85%
ARKFARK Fintech Innovation ETF745.674,913.2515.18%
ARKKARK Innovation ETF556.0927,634.252.01%
ARKWARK Next Generation Internet ETF522.069,391.445.56%
BNDXVanguard Total International Bond ETF511.0839,124.741.31%
VEAVanguard FTSE Developed Markets ETF497.5493,534.760.53%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF-1,910.5547,552.87-4.02%
TLTiShares 20+ Year Treasury Bond ETF-1,151.0014,425.09-7.98%
XLUUtilities Select Sector SPDR Fund-782.5711,517.34-6.79%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-735.5721,831.20-3.37%
EMBiShares JP Morgan USD Emerging Markets Bond ETF-691.1318,328.40-3.77%
IWMiShares Russell 2000 ETF-664.5667,372.13-0.99%
GLDSPDR Gold Trust-542.1564,846.86-0.84%
PFFiShares Preferred and Income Securities ETF-499.1118,198.27-2.74%
VYMVanguard High Dividend Yield ETF-435.0932,769.11-1.33%
QQQInvesco QQQ Trust-267.30159,866.00-0.17%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity4,694.353,343,132.570.14%
International Equity6,130.001,196,852.210.51%
U.S. Fixed Income117.51981,190.470.01%
International Fixed Income252.40129,480.450.19%
Commodities-415.49141,270.71-0.29%
Currency-33.661,987.10-1.69%
Leveraged141.8553,107.930.27%
Inverse156.9811,684.181.34%
Asset Allocation55.5914,257.440.39%
Alternatives393.636,417.986.13%
Total:11,493.155,879,381.060.20%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity41,432.623,343,132.571.24%
International Equity56,389.561,196,852.214.71%
U.S. Fixed Income20,234.56981,190.472.06%
International Fixed Income7,197.41129,480.455.56%
Commodities826.76141,270.710.59%
Currency80.911,987.104.07%
Leveraged-794.0953,107.93-1.50%
Inverse2,280.7711,684.1819.52%
Asset Allocation574.4014,257.444.03%
Alternatives1,119.046,417.9817.44%
Total:129,341.935,879,381.062.20%

 

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.

Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.