Equity ETFs Bleed Assets Amid Turbulent Markets

U.S. equity ETFs hemorrhaged assets last week as wobbling markets caused investors to pull funds from the asset class.  

More than $14 billion escaped U.S. stock funds in the week ending March 24, etf.com data shows. That’s a reversal from the $17.5 billion that went into the asset class the week prior.  

The losses come in the same week the Federal Reserve raised rates 25 basis points, less than what was expected a few weeks ago, after a series of bank collapses and rescues suggested a worrisome fragility to the U.S. and European banking sectors.  

The hike brings the federal funds rate to between 4.75% and 5%, the highest level since 2007.  

Funds that saw the greatest outflows included the Vanguard Total Stock Market ETF (VTI), the iShares Select Dividend ETF (DVY) and the Vanguard Dividend Appreciation ETF (VIG). Collectively, the three funds lost $7.3 billion, according to etf.com data.  

Meanwhile, the iShares ESG Aware MSCI USA ETF (ESGU) bled nearly $5.2 billion last week, etf.com data shows. That’s a record loss for the largest environmental, social and governance index fund, which may be shedding billions of dollars as a result of the ongoing political backlash over so-called socially responsible investing.  

Nearly that same amount went into the iShares MSCI USA Quality Factor ETF (QUAL), the top asset gatherer of the week, during the same period.   

On the other side of the ledger, U.S. fixed income funds brought in $6.1 billion last week, just shy of the $6.7 billion that bond funds saw the week before.  

Among the week’s top asset gatherers were the iShares U.S. Treasury Bond ETF (GOVT) and the iShares Core Total USD Bond Market ETF (IUSB), which collectively hauled in nearly $4 billion, etf.com data shows.  

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.