Equities Power $19B In Weekly ETF Flows

U.S. equities bounced back from just $600 million in inflows last week to $13.6 billion in the past week to power a net inflow of just more than $19 billion into U.S. ETFs between Aug. 6 and Aug. 12, according to ETF.com data provider FactSet.

Investors have now placed a net $545.3 billion into U.S.-listed ETFs year-to-date as of Thursday, while overall assets under management stand shy of $6.7 trillion.

Confidence Drives Equities

The resurgence in U.S. equities comes as little surprise after the S&P 500 Index posted three straight record-high closes to end the period, and opened on a record high Friday as investors brushed off fears of inflation and the continued threat of the COVID-19 delta variant on economic recovery.

The Health Care Select Sector SPDR Fund (XLV) and the Consumer Staples Select Sector SPDR Fund (XLP) were the top asset losers for the week, with a combined $1.4 billion in outflows, suggesting some investors were willing to pull back on defensive strategies.

However, the S&P 500 and the Dow Jones Industrial Average’s gains were stunted in early Friday trading after the University of Michigan Consumer Sentiment Index fell by 13.5% from July to August to its lowest level since December 2011.

Bank ETFs Gain On Interest Hike Talk

Banking was the most represented industry on the top 10 inflows list this week, with the Financial Select Sector SPDR Fund (XLF), SPDR S&P Regional Banking ETF (KRE) and Invesco KBW Bank ETF (KBWB) gaining just shy of $2.8 billion combined.

Atlanta Federal Reserve President Raphael Bostic and Richmond Fed President Tom Barkin both said this week that the Fed may start tapering its bond purchases by the fourth quarter, and that inflation had already attained the averaged-out 2% target adopted by the central bank last year.

Those comments spurred discussions about a rate hike from the Fed either late next year or in early 2023, which would benefit bank profits down the line.

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.