Equity ETF Inflows Spike on Soaring Market
Cooling inflation encouraged ETF investors last week.
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 $1.6 billion in the week ending Nov. 4.
Also among the top performers of last week were the iShares iBoxx USD High Yield Corporate Bond ETF (HYG), the SPDR Bloomberg High Yield Bond ETF (JNK) and the Vanguard Short-Term Corporate Bond ETF (VCSH), ETF.com data shows.
Still, investor excitement may be premature, as long-term inflation expectations continue to rise.
More Work to Be Done
The Federal Reserve Bank of New York’s October survey of consumer expectations released on Monday shows that U.S. consumers are less optimistic than last month that inflation will cool. Survey respondents noted that they see inflation staying at 5.9% in a year’s time, up from the 5.4% posted in September.
The U.S.’ central bank officials continue to harp on messaging that there is continued work to be done.
Federal Reserve Vice Chair Lael Brainard said in an appearance on Bloomberg TV on Monday that the central bank may soon moderate the size of its interest-rate increases, but that the regulatory authority continues to keep its eye on moderating inflation to 2%.
“It will probably be appropriate soon to move to a slower pace of increases,” she said. “But I think what’s really important to emphasize: We’ve done a lot, but we have additional work to do.”
For a full list of last week’s top inflows and outflows, see the tables below:
Top 10 Creations (All ETFs)
| Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
| QQQ | Invesco QQQ Trust | 4,625.91 | 159,071.86 | 2.91% |
| VTI | Vanguard Total Stock Market ETF | 2,684.85 | 268,127.67 | 1.00% |
| HYG | iShares iBoxx USD High Yield Corporate Bond ETF | 1,608.76 | 17,218.02 | 9.34% |
| IWM | iShares Russell 2000 ETF | 1,602.60 | 55,214.26 | 2.90% |
| JNK | SPDR Bloomberg High Yield Bond ETF | 1,400.38 | 9,731.83 | 14.39% |
| LQD | iShares iBoxx USD Investment Grade Corporate Bond ETF | 898.56 | 36,845.88 | 2.44% |
| TLT | iShares 20+ Year Treasury Bond ETF | 895.93 | 24,406.84 | 3.67% |
| SPY | SPDR S&P 500 ETF Trust | 864.65 | 372,453.64 | 0.23% |
| VTEB | Vanguard Tax-Exempt Bond ETF | 803.43 | 22,130.49 | 3.63% |
| VCSH | Vanguard Short-Term Corporate Bond ETF | 715.85 | 39,597.99 | 1.81% |
Top 10 Redemptions (All ETFs)
| Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
| IVV | iShares Core S&P 500 ETF | -1,667.65 | 299,865.93 | -0.56% |
| SHV | iShares Short Treasury Bond ETF | -1,562.77 | 19,607.91 | -7.97% |
| VTV | Vanguard Value ETF | -714.92 | 104,256.91 | -0.69% |
| VTIP | Vanguard Short-Term Inflation-Protected Securities ETF | -604.74 | 17,511.08 | -3.45% |
| IEI | iShares 3-7 Year Treasury Bond ETF | -552.03 | 12,019.05 | -4.59% |
| IJJ | iShares S&P Mid-Cap 400 Value ETF | -465.13 | 7,503.45 | -6.20% |
| EFA | iShares MSCI EAFE ETF | -370.01 | 44,594.75 | -0.83% |
| OIH | VanEck Oil Services ETF | -304.31 | 2,868.77 | -10.61% |
| FLOT | iShares Floating Rate Bond ETF | -255.93 | 8,849.42 | -2.89% |
| SOXL | Direxion Daily Semiconductor Bull 3X Shares | -248.31 | 4,447.08 | -5.58% |
ETF Weekly Flows By Asset Class
| Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
| U.S. Equity | 16,358.77 | 3,951,459.57 | 0.41% |
| International Equity | 4,155.41 | 1,112,012.63 | 0.37% |
| U.S. Fixed Income | 9,862.67 | 1,125,094.84 | 0.88% |
| International Fixed Income | 958.68 | 134,162.02 | 0.71% |
| Commodities | -53.97 | 130,649.55 | -0.04% |
| Currency | -32.79 | 4,459.36 | -0.74% |
| Leveraged | -162.54 | 49,659.88 | -0.33% |
| Inverse | 272.38 | 22,350.05 | 1.22% |
| Asset Allocation | 53.17 | 16,394.71 | 0.32% |
| Alternatives | 73.48 | 9,173.64 | 0.80% |
| Total: | 31,485.26 | 6,555,416.27 | 0.48% |
Asset Classes (Year-to-Date)
| Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
| U.S. Equity | 257,031.48 | 3,951,459.57 | 6.50% |
| International Equity | 80,842.22 | 1,112,012.63 | 7.27% |
| U.S. Fixed Income | 157,783.43 | 1,125,094.84 | 14.02% |
| International Fixed Income | 4,511.69 | 134,162.02 | 3.36% |
| Commodities | -2,197.12 | 130,649.55 | -1.68% |
| Currency | 2,068.35 | 4,459.36 | 46.38% |
| Leveraged | 20,358.59 | 49,659.88 | 41.00% |
| Inverse | 7,784.85 | 22,350.05 | 34.83% |
| Asset Allocation | 447.11 | 16,394.71 | 2.73% |
| Alternatives | 2,680.11 | 9,173.64 | 29.22% |
| Total: | 531,310.70 | 6,555,416.27 | 8.10% |
Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded
| Ticker | Name | Weekly Performance | Weekly Volume | AUM ($, mm) |
| GDMN | WisdomTree Efficient Gold Plus Gold Miners Strategy Fund | 15.11% | 10,723 | 7.56 |
| TAN | Invesco Solar ETF | 14.10% | 6,656,953 | 2,478.03 |
| JJN | iPath Series B Bloomberg Nickel Subindex Total Return ETN | 12.87% | 29,393 | 37.98 |
| CTEX | ProShares S&P Kensho Cleantech ETF | 12.65% | 3,862 | 6.04 |
| RING | iShares MSCI Global Gold Miners ETF | 12.58% | 254,050 | 390.85 |
| SGDJ | Sprott Junior Gold Miners ETF | 12.57% | 73,364 | 91.63 |
| GDX | VanEck Gold Miners ETF | 12.17% | 154,068,057 | 11,550.33 |
| SGDM | Sprott Gold Miners ETF | 11.43% | 238,473 | 200.16 |
| GOAU | U.S. Global GO Gold and Precious Metal Miners ETF | 11.26% | 92,519 | 79.91 |
| CTEC | Global X CleanTech ETF | 11.25% | 174,310 | 120.67 |
Top 10 YTD Performers
| Ticker | Name | YTD Performance | Weekly Performance | AUM ($, mm) |
| MLPO | Credit Suisse S&P MLP Index ETN | 70.36% | -10.23% | 29.79 |
| OILK | ProShares K-1 Free Crude Oil Strategy ETF | 28.89% | -5.33% | 89.53 |
| FUE | ELEMENTS Linked to the ICE BofAML Commodity Index eXtra Biofuels - Total Return ETN | 19.40% | -1.20% | 1.67 |
| TADS | The Active Dividend Stock ETF | 17.40% | 0.00% | 1.67 |
| RINF | ProShares Inflation Expectations ETF | 14.99% | -2.45% | 79.90 |
| NVMZ | TrueShares Structured Outcome ETF - November | 14.66% | 79.90 | |
| GRU | ELEMENTS Linked to ICE BofAML Commodity index eXtra Grains - Total Return ETN | 13.53% | -3.46% | 10.92 |
| USOI | Credit Suisse X-Links Crude Oil Shares Covered Call ETN | 13.44% | -4.17% | 368.19 |
| VIXM | ProShares VIX Mid-Term Futures ETF | 8.83% | 0.90% | 78.24 |
| SULR | SmartETFs Sustainable Energy II ETF | 8.64% | 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.
