Emerging Markets & Bond ETFs Bolster Weekly Inflows

Investors added nearly $5 billion to US-listed ETFs this 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

Investors tiptoed back into ETFs as volatility cooled off this week. The Cboe Volatility Index (VIX) briefly dropped below 17 on Friday, the lowest point since Feb. 2, and less than half the level of the recent highs.

Still, even as the U.S. stock market stabilized, investors remained cautious. They pulled out $2.4 billion from U.S. equity ETFs as concerns about interest rates and inflation lingered.

As has often been the case this month, the SPDR S&P 500 ETF Trust (SPY) was the biggest flows loser this week, with outflows of $1.3 billion.

On the other hand, where investors did add money was international equity ETFs. That segment picked up $4.5 billion of new money. The iShares Core MSCI Emerging Markets ETF (IEMG), in particular, was popular, with inflows of $1.3 billion.

Also seeing investor interest this week were fixed-income ETFs. U.S. fixed-income ETFs had inflows of $2 billion, while international fixed-income ETFs had inflows of $570 million. That’s despite the fact that, all throughout the week, investors fretted about rising interest rates and whether the U.S. 10-year Treasury yield would top 3%.

The yield didn’t make it quite that high. It peaked around 2.95% on Wednesday before falling to as low as 2.86% on Friday.

The SPDR Bloomberg Barclays High Yield Bond ETF (JNK) was this week’s biggest beneficiary of bargain buying in the fixed-income space, with inflows of nearly $500 million.

Adding it all up, U.S.-listed ETFs had net inflows of $4.9 billion during the week ending Thursday, Feb. 22, according to FactSet. That brings year-to-date inflows to $50.1 billion.

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IEMGiShares Core MSCI Emerging Markets ETF1,306.1749,086.732.73%
VOOVanguard S&P 500 ETF504.1088,269.340.57%
JNKSPDR Bloomberg Barclays High Yield Bond ETF487.809,142.955.64%
VEAVanguard FTSE Developed Markets ETF475.0270,587.490.68%
IEFAiShares Core MSCI EAFE ETF374.0751,741.500.73%
XLPConsumer Staples Select Sector SPDR Fund301.007,378.054.25%
SHViShares Short Treasury Bond ETF286.659,415.683.14%
GLDSPDR Gold Trust282.2335,402.190.80%
XLREReal Estate Select Sector SPDR Fund252.742,461.7711.44%
EWJiShares MSCI Japan ETF247.0922,481.861.11%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust-1,262.81270,089.58-0.47%
DIASPDR Dow Jones Industrial Average ETF Trust-937.9422,334.18-4.03%
IWMiShares Russell 2000 ETF-742.7340,194.69-1.81%
XLEEnergy Select Sector SPDR Fund-528.4117,181.98-2.98%
XLVHealth Care Select Sector SPDR Fund-418.7115,666.36-2.60%
XLIIndustrial Select Sector SPDR Fund-337.8612,881.24-2.56%
XLKTechnology Select Sector SPDR Fund-322.1919,561.66-1.62%
DXJWisdomTree Japan Hedged Equity Fund-315.517,618.49-3.98%
XLFFinancial Select Sector SPDR Fund-297.1333,040.78-0.89%
MDYSPDR S&P Midcap 400 ETF Trust-224.5520,392.93-1.09%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-2,420.831,929,866.36-0.13%
International Equity4,483.96849,428.630.53%
U.S. Fixed Income1,982.31518,080.700.38%
International Fixed Income568.5062,568.720.91%
Commodities450.0069,107.260.65%
Currency7.921,366.770.58%
Leveraged-254.6235,750.56-0.71%
Inverse131.2713,788.220.95%
Asset Allocation6.048,891.950.07%
Alternatives-25.454,525.67-0.56%
Total:4,929.103,493,374.840.14%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
Volume
% of Average
WBIEWBI Tactical LCGD Shares45,209370,806820.20%
WBIAWBI Tactical SMGD Shares29,506245,796833.04%
WBIDWBI Tactical SMQ Shares37,984312,616823.03%
WBIBWBI Tactical SMV Shares28,091223,113794.26%
WBILWBI Tactical LCQ Shares25,398199,959787.30%
WBICWBI Tactical SMY Shares16,483116,840708.85%
WBIFWBI Tactical LCV Shares20,219141,529699.98%
WBIIWBI Tactical Income Shares37,341242,104648.37%
IGNiShares North American Tech-Multimedia Networking ETF18,241104,328571.93%
WBIHWBI Tactical High Income Shares49,011226,478462.10%

 

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.