ETF Asset Inflows Remain Strong In Sept At More Than $17B

September 30, 2016

Demand for U.S.-listed ETFs finished September on a positive note. Inflows into all ETFs totaled nearly $8 billion in the week ending Thursday, Sept. 29, according to FactSet, pushing inflows for the month to around $17 billion. Assets under management in all ETFs is now $2.42 trillion, up from $2.07 trillion at the start of the year amid a combination of inflows and price appreciation.

In the latest week, U.S. equity ETFs accounted for the bulk of inflows, gathering $6.2 billion. In contrast, international equity ETFs had outflows of $1.4 billion.

U.S. fixed-income ETFs saw inflows of $2.9 billion; international fixed-income ETFs saw inflows of $220 million; and commodity ETFs saw inflows of $40 million.

Junk Bond ETFs In Vogue
In terms of individual ETFs, two junk bond products were popular. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the SPDR Barclays High Yield Bond ETF (JNK) had inflows of $833 million and $564 million, respectively. 

Also seeing interest was the Real Estate Sector SPDR Fund (XLRE), with inflows of $446 million. Earlier in September, real estate became a stand-alone sector outside of financials, giving a boost to XLRE's asset base.

Meanwhile, energy ETFs were in focus this week, after OPEC unexpectedly cut production on Wednesday. The news sent crude oil prices soaring almost 8% to $48, and fueling outsized gains in the various energy ETFs. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) was a big beneficiary of the OPEC cut. It rallied almost 10% between Wednesday and Friday, and had inflows of $429 million in the week ending Thursday.

EAFE ETFs Bled Assets
On the outflows side, the Deutsche X-trackers MSCI EAFE Hedged Equity ETF (DBEF) continued to bleed assets. DBEF had outflows of nearly $1 billion, matching last week's outflows of just over $1 billion. The iShares MSCI EAFE ETF (EFA) was another EAFE-focused fund that had big outflows, to the tune of $567 million.

Both ETFs have heavy exposure to Japan and Europe, which are regions that have been out of favor with investors for months now. This week's news that Deutsche Bank, one of Europe's largest banks, was struggling and could need government assistance to survive, only further dampened sentiment for these ETFs.

Other notable losers this week included the Vanguard Financials Index Fund (VFH), with outflows of $459 million, or 12.4% of assets, and the VanEck Vectors Semiconductor ETF (SMH), with outflows of $204 million, or 27.8% of its assets.

For a full list of this week's top inflows and outflows, see the tables below.

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust 1,817.53 199,167.76 0.92%
HYG iShares iBoxx $ High Yield Corporate Bond ETF 1,000.98 16,631.49 6.40%
IWM iShares Russell 2000 ETF 833.99 28,848.79 2.98%
JNK SPDR Barclays High Yield Bond ETF 564.04 12,261.65 4.82%
IVV iShares Core S&P 500 ETF 459.05 79,698.61 0.58%
XLRE Real Estate Select Sector SPDR Fund 446.22 3,292.68 15.68%
XOP SPDR S&P Oil & Gas Exploration & Production ETF 428.71 2,290.36 23.03%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 404.58 33,162.62 1.24%
XLY Consumer Discretionary Select Sector SPDR Fund 297.18 9,549.22 3.21%
AGG iShares Core U.S. Aggregate Bond ETF 291.80 41,705.29 0.70%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
DBEF Deutsche X-trackers MSCI EAFE Hedged Equity ETF -986.72 7,946.22 -11.05%
EFA iShares MSCI EAFE ETF -566.45 59,375.64 -0.94%
VFH Vanguard Financials Index Fund -458.63 3,236.19 -12.41%
SHY iShares 1-3 Year Treasury Bond ETF -374.03 10,605.39 -3.41%
TLT iShares 20+ Year Treasury Bond ETF -369.04 7,263.23 -4.84%
DIA SPDR Dow Jones Industrial Average ETF Trust -229.39 12,461.03 -1.81%
SMH VanEck Vectors Semiconductor ETF -204.05 528.11 -27.87%
EWJ iShares MSCI Japan ETF -182.38 14,187.65 -1.27%
HEDJ WisdomTree Europe Hedged Equity Fund -176.46 9,134.49 -1.90%
HEFA iShares Currency Hedged MSCI EAFE ETF -161.78 3,141.38 -4.90%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 6,216.78 1,331,123.75 0.47%
International Equity -1,361.26 510,538.03 -0.27%
U.S. Fixed Income 2,873.54 408,144.84 0.70%
International Fixed Income 223.77 41,566.67 0.54%
Commodities 44.22 74,505.00 0.06%
Currency 14.21 1,346.73 1.06%
Leveraged -170.42 24,671.59 -0.69%
Inverse 137.21 19,684.18 0.70%
Asset Allocation 13.69 6,429.43 0.21%
Alternatives 0.33 4,500.27 0.01%
Total: 7,992.07 2,422,510.50 0.33%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
AUNZ WisdomTree Australia & New Zealand Debt Fund 264,286 1,857,232 702.73%
SMIN iShares MSCI India Small Cap ETF 30,454 158,846 521.60%
DIVC C-Tracks ETN - Miller/Howard Strategic Dividend Reinvestor 603 2,550 422.55%
IBCD iShares iBonds Mar 2020 Term Corporate ex-Financials ETF 26,533 105,087 396.05%
RYE Guggenheim S&P 500 Equal Weight Energy ETF 58,203 217,792 374.19%
GNMA iShares GNMA Bond ETF 37,355 79,200 212.02%
GSIE Goldman Sachs ActiveBeta International Equity ETF 74,055 136,653 184.53%
ILB PIMCO Global Advantage Inflation-Linked Bond Active ETF 6,468 36,674 566.96%
GEX VanEck Vectors Global Alternative Energy ETF 2,838 5,885 207.32%
PTNQ Pacer Trendpilot 100 ETF 13,030 24,584 188.66%

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.

 

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