Bond Funds Remain Investors’ Top Pick

Fixed income exchange-traded funds posted a $7.8 billion haul as investors shirked off equities. 

ETFs netted $14 billion in inflows the week ending Jan. 13, climbing nearly 55% from $9.3 billion that came in the week prior. Of that, $7.8 billion in assets flocked to bond funds, a 17% dip from the week ending Jan. 6, according to ETF.com data. Meanwhile, equity funds shed $348 million, compared to the $2.7 billion in outflows posted the previous week.  

The outflows in equity ETFs come despite U.S. stocks recording their largest weekly gains in two months. The S&P 500 gained 2.7% in the week ending Jan. 13, while the Nasdaq soared 4.8% in the same period. Treasury yields also surged, with the two-year reaching 4.23% by the end of the week. In November, the note, which is particularly sensitive to policy shifts and interest rate movements, saw yields peak at 4.7%. Bond prices fall as yields rise.  

Another bright spot for investors was international equity ETFs, which lured $5.2 billion. Top-performing funds included the iShares Core MSCI Emerging Markets ETF (IEMG) and the iShares JP Morgan USD Emerging Markets Bond ETF (EMB), which collectively brought in nearly $3 billion, ETF.com data shows.  

On the other side of the ledger, funds with the greatest losses included the Invesco QQQ Trust (QQQ), the Technology Select Sector SPDR Fund (XLK) and the iShares ESG Aware MSCI USA ETF (ESGU) which recorded $3.6 billion in losses.  

For a full list of last 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.