Equity ETF Inflows Spike on Soaring Market

Cooling inflation encouraged ETF investors last week.

ShubhamSaharan_white_bg
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Reviewed by: Shubham Saharan
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Edited by: Shubham Saharan

Exchange-traded fund inflows jumped as seemingly waning inflation sent investors on a buying spree.  

Equity markets rallied in the week ending Nov. 11, as less-than-expected inflation data from the Federal Reserve indicated the central bank may soon begin decreasing its pace of interest rate hikes. The S&P 500 climbed 5.9% during the week, while the Nasdaq jumped 8.1%  

U.S. equity ETFs notched $16 billion in inflows, shooting up from the less than $1 billion pulled in the week before. Top earners of the week included the Invesco QQQ Trust (QQQ), the Vanguard Total Stock Market ETF (VTI) and the SPDR S&P 500 ETF Trust (SPY). The three funds alone brought in over $8.1 billion, according to ETF.com data.

Fixed income funds similarly got a boost, as yields on the benchmark 10-year Treasury bill dropped nearly 22 basis points to 3.83%, while the policy-sensitive two-year note witnessed its steepest decline since 2008 just hours after consumer price index data was published on Thursday. Inflows into the asset class touched nearly $4.2 billion, compared with the $1.6 billion in the week ending Nov. 4.  

Also among the top performers of last week were the iShares iBoxx USD High Yield Corporate Bond ETF (HYG), the SPDR Bloomberg High Yield Bond ETF (JNK) and the Vanguard Short-Term Corporate Bond ETF (VCSH), ETF.com data shows.  

Still, investor excitement may be premature, as long-term inflation expectations continue to rise. 

More Work to Be Done

The Federal Reserve Bank of New York’s October survey of consumer expectations released on Monday shows that U.S. consumers are less optimistic than last month that inflation will cool. Survey respondents noted that they see inflation staying at 5.9% in a year’s time, up from the 5.4% posted in September.  

The U.S.’ central bank officials continue to harp on messaging that there is continued work to be done.  

Federal Reserve Vice Chair Lael Brainard said in an appearance on Bloomberg TV on Monday that the central bank may soon moderate the size of its interest-rate increases, but that the regulatory authority continues to keep its eye on moderating inflation to 2%.  

“It will probably be appropriate soon to move to a slower pace of increases,” she said. “But I think what’s really important to emphasize: We’ve done a lot, but we have additional work to do.” 

 

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

 

Top 10 Creations (All ETFs)

 

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
QQQInvesco QQQ Trust4,625.91159,071.862.91%
VTIVanguard Total Stock Market ETF2,684.85268,127.671.00%
HYGiShares iBoxx USD High Yield Corporate Bond ETF1,608.7617,218.029.34%
IWMiShares Russell 2000 ETF1,602.6055,214.262.90%
JNKSPDR Bloomberg High Yield Bond ETF1,400.389,731.8314.39%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF898.5636,845.882.44%
TLTiShares 20+ Year Treasury Bond ETF895.9324,406.843.67%
SPYSPDR S&P 500 ETF Trust864.65372,453.640.23%
VTEBVanguard Tax-Exempt Bond ETF803.4322,130.493.63%
VCSHVanguard Short-Term Corporate Bond ETF715.8539,597.991.81%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IVViShares Core S&P 500 ETF-1,667.65299,865.93-0.56%
SHViShares Short Treasury Bond ETF-1,562.7719,607.91-7.97%
VTVVanguard Value ETF-714.92104,256.91-0.69%
VTIPVanguard Short-Term Inflation-Protected Securities ETF-604.7417,511.08-3.45%
IEIiShares 3-7 Year Treasury Bond ETF-552.0312,019.05-4.59%
IJJiShares S&P Mid-Cap 400 Value ETF-465.137,503.45-6.20%
EFAiShares MSCI EAFE ETF-370.0144,594.75-0.83%
OIHVanEck Oil Services ETF-304.312,868.77-10.61%
FLOTiShares Floating Rate Bond ETF-255.938,849.42-2.89%
SOXLDirexion Daily Semiconductor Bull 3X Shares-248.314,447.08-5.58%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity16,358.773,951,459.570.41%
International Equity4,155.411,112,012.630.37%
U.S. Fixed Income9,862.671,125,094.840.88%
International Fixed Income958.68134,162.020.71%
Commodities-53.97130,649.55-0.04%
Currency-32.794,459.36-0.74%
Leveraged-162.5449,659.88-0.33%
Inverse272.3822,350.051.22%
Asset Allocation53.1716,394.710.32%
Alternatives73.489,173.640.80%
Total:31,485.266,555,416.270.48%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity257,031.483,951,459.576.50%
International Equity80,842.221,112,012.637.27%
U.S. Fixed Income157,783.431,125,094.8414.02%
International Fixed Income4,511.69134,162.023.36%
Commodities-2,197.12130,649.55-1.68%
Currency2,068.354,459.3646.38%
Leveraged20,358.5949,659.8841.00%
Inverse7,784.8522,350.0534.83%
Asset Allocation447.1116,394.712.73%
Alternatives2,680.119,173.6429.22%
Total:531,310.706,555,416.278.10%

 

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
GDMNWisdomTree Efficient Gold Plus Gold Miners Strategy Fund15.11%10,7237.56
TANInvesco Solar ETF14.10%6,656,9532,478.03
JJNiPath Series B Bloomberg Nickel Subindex Total Return ETN12.87%29,39337.98
CTEXProShares S&P Kensho Cleantech ETF12.65%3,8626.04
RINGiShares MSCI Global Gold Miners ETF12.58%254,050390.85
SGDJSprott Junior Gold Miners ETF12.57%73,36491.63
GDXVanEck Gold Miners ETF12.17%154,068,05711,550.33
SGDMSprott Gold Miners ETF11.43%238,473200.16
GOAUU.S. Global GO Gold and Precious Metal Miners ETF11.26%92,51979.91
CTECGlobal X CleanTech ETF11.25%174,310120.67

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
MLPOCredit Suisse S&P MLP Index ETN70.36%-10.23%29.79
OILKProShares K-1 Free Crude Oil Strategy ETF28.89%-5.33%89.53
FUEELEMENTS Linked to the ICE BofAML Commodity Index eXtra Biofuels - Total Return ETN19.40%-1.20%1.67
TADSThe Active Dividend Stock ETF17.40%0.00%1.67
RINFProShares Inflation Expectations ETF14.99%-2.45%79.90
NVMZTrueShares Structured Outcome ETF - November14.66% 79.90
GRUELEMENTS Linked to ICE BofAML Commodity index eXtra Grains - Total Return ETN13.53%-3.46%10.92
USOICredit Suisse X-Links Crude Oil Shares Covered Call ETN13.44%-4.17%368.19
VIXMProShares VIX Mid-Term Futures ETF8.83%0.90%78.24
SULRSmartETFs Sustainable Energy II ETF8.64% 78.24

 

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.

Shubham Saharan is a markets reporter at etf.com. Before joining the company, she reported for Bloomberg and the Financial Times. Saharan is a graduate of Barnard College of Columbia University.