Bond ETFs Drive $23B Of Inflows

U.S.-listed ETFs gained $22.6 billion in inflows in the period from Nov. 5 to Nov. 11, with fixed income inflows more than doubling week-over-week to offset a drop in equity inflows.

The U.S. ETF industry has now gained $761.7 million in year-to-date inflows, according to ETF.com data provider FactSet, and now has nearly $7.1 trillion in assets under management.

Broad Market Leads, Corporate Bonds Surge

Broad equity ETFs continued their dominant streak at the top of the highest-inflow ETFs on the week despite a higher than expected inflation reading on Wednesday.

The Vanguard S&P 500 ETF (VOO) led, with $1.6 billion in inflows, while the Invesco QQQ Trust (QQQ) followed, with $1.3 billion. The iShares Russell 2000 ETF (IWM), iShares Core S&P 500 ETF (IVV), Vanguard Total Stock Market ETF (VTI) and SPDR S&P 500 ETF Trust (SPY) gained a combined $3.5 billion on the week.

But three corporate bond ETFs appeared on the top 10 inflows chart this week with a combined $2.4 billion in new assets. The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) and iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) recovered from deep outflows last week to gain a combined $1.82 billion. While the -five-year breakeven inflation rate peaked past 3% this week, the bond market doesn’t appear to be that concerned over long-lasting inflation.

Tech Suffers

Technology-heavy ETFs took the brunt of the biggest outflows of the week, led by the Technology Select Sector SPDR Fund (XLK) losing $566 million and the ARK Innovation ETF (ARKK) losing nearly $506 million.

The latter was likely caused by Elon Musk selling 10% of his stake in Tesla after a majority of respondents to his Twitter poll last week told him to do it.

However, the spike in Treasury yields this week from the hot inflation print boded poorly for tech stocks, which tend to have higher valuations in low interest rate environments.

The VanEck Semiconductor ETF (SMH), Vanguard Information Technology ETF (VGT) and iShares Expanded Tech-Software Sector ETF (IGV) combined lost more than $1 billion during the period.

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

Top 10 Creations (All ETFs)

Top 10 Redemptions (All ETFs)

ETF Weekly Flows By Asset Class

Asset Classes (Year-to-Date)

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

Top 10 YTD Performers

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.