Equity ETF Investments Soar as Markets Wobble

U.S. equity exchange-traded funds raked in billions of dollars last week as markets whipsawed on concerns of the health of the U.S. banking system.  

Stock funds pulled in $17.5 billion in the week ending March 13, more than twice the $7 billion the asset class saw the week prior. The week’s top asset gatherers included the SPDR S&P 500 ETF Trust (SPY), the Vanguard High Dividend Yield ETF (VYM) and the Vanguard Dividend Appreciation ETF (VIG), which collectively lured in $8.5 billion.  

The collapse of Silicon Valley Bank and Signature Bank, the bailout of Credit Suisse and the rescue of First Republic in the past month revealed unforeseen stress on the banking sector. The S&P 500 dipped 1.1% on Friday, while the Nasdaq slumped 0.7%.  

Meanwhile, U.S. fixed income funds gained $6.6 billion, climbing 69% from the $3.9 billion that came in the previous week. The iShares 7-10 Year Treasury Bond ETF (IEF) and the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) collectively saw nearly $5 billion in inflows.  

Those gains came as anxiety in the banking sector and rising fears of an economic downturn led to the largest one-day rally last Monday in short-term U.S. government bonds since 1987. By the end of the week, the 10-year Treasury bills yields fell 14 basis points. Prices rise as yields fall.  

On the other side of the ledger, funds with the most outflows during the week included the Vanguard Short-Term Corporate Bond ETF (VCSH) and the Invesco QQQ Trust (QQQ), which together shed more than $4 billion during the time period.  

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.