ETF Demand Up Despite Market Chaos
Despite one of the worst weeks on record for stocks, investors added $2.9 billion to ETFs.
You wouldn’t be able to tell that the stock market just had one of its worst days and one of its worst weeks in history based on ETF flows. The S&P 500 collapsed 9.5% on Thursday—its largest decline since 1987 and the fifth-largest single-session decline ever. The index fell a whopping 16.5% in the five sessions through Thursday, and yet, remarkably, U.S.-listed ETFs registered net inflows during that period.
Indeed, $2.9 billion flowed into ETFs during the week, pushing year-to-date inflows up to $89.8 billion, ahead of last year’s $54.7 billion pace at this time.
That suggests that rather than panic, ETF investors are holding firm and, in some cases, adding to their positions amid the market volatility.
US Equities Lead Inflows
Importantly, most of this week’s inflows went into U.S. equity ETFs, where the damage has been severe. The S&P 500 fell as much as 27% below its all-time highs on Thursday. Yet, U.S. equity ETFs had net inflows of $8.5 billion during the week. Low-cost index funds like the Vanguard S&P 500 ETF (VOO), the iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF Trust (SPY) topped the weekly inflows list.
On the other hand, investors shunned international equity ETFs; about $4.6 billion flowed out of the space. Sentiment on international stocks soured as coronavirus cases in Europe exploded and the Italian economy shut down.
Investors also used the record rally in Treasuries to take money off the table. The 10-year Treasury bond yield dipped to an all-time low of 0.31% on Monday, sending Treasury prices to the stratosphere (bond prices and yields move inversely). But those yields nearly tripled off the lows as investors reasoned that the rally may have extended too far and too fast.
U.S. fixed income ETFs had net outflows of $4.6 billion during the week. The iShares Core U.S. Aggregate Bond ETF (AGG) was the biggest flows loser in the space. The iShares iBoxx USD High Yield Corporate Bond ETF (HYG), the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) also had outflows as credit spreads widened significantly and investors fretted about overleveraged companies.
The Federal Reserve meets next week and is expected to cut rates dramatically.
For a full list of this week’s top inflows and outflows, see the tables below:
Top 10 Creations (All ETFs)
Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
VOO | Vanguard S&P 500 ETF | 2,583.11 | 124,690.74 | 2.07% |
SHY | iShares 1-3 Year Treasury Bond ETF | 2,451.79 | 21,015.96 | 11.67% |
BIL | SPDR Bloomberg Barclays 1-3 Month T-Bill ETF | 1,684.75 | 11,779.74 | 14.30% |
IVV | iShares Core S&P 500 ETF | 1,610.29 | 180,571.18 | 0.89% |
SPY | SPDR S&P 500 ETF Trust | 1,601.69 | 247,007.86 | 0.65% |
VTI | Vanguard Total Stock Market ETF | 1,420.58 | 122,487.87 | 1.16% |
SPTS | SPDR Portfolio Short Term Treasury ETF | 1,275.40 | 3,559.97 | 35.83% |
SHV | iShares Short Treasury Bond ETF | 1,186.65 | 21,651.86 | 5.48% |
XLE | Energy Select Sector SPDR Fund | 1,125.48 | 7,711.41 | 14.60% |
IEI | iShares 3-7 Year Treasury Bond ETF | 806.07 | 10,974.20 | 7.35% |
Top 10 Redemptions (All ETFs)
Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
XLF | Financial Select Sector SPDR Fund | -2,139.82 | 14,872.31 | -14.39% |
AGG | iShares Core U.S. Aggregate Bond ETF | -1,737.70 | 74,784.81 | -2.32% |
QQQ | Invesco QQQ Trust | -1,452.82 | 80,049.51 | -1.81% |
HYG | iShares iBoxx USD High Yield Corporate Bond ETF | -1,249.49 | 14,173.26 | -8.82% |
LQD | iShares iBoxx USD Investment Grade Corporate Bond ETF | -1,207.62 | 31,159.16 | -3.88% |
JNK | SPDR Bloomberg Barclays High Yield Bond ETF | -900.24 | 6,513.56 | -13.82% |
IEF | iShares 7-10 Year Treasury Bond ETF | -883.36 | 21,471.23 | -4.11% |
EMB | iShares JP Morgan USD Emerging Markets Bond ETF | -882.16 | 14,250.55 | -6.19% |
SPTI | SPDR Portfolio Intermediate Term Treasury ETF | -748.34 | 1,337.71 | -55.94% |
TIP | iShares TIPS Bond ETF | -632.88 | 21,327.34 | -2.97% |
ETF Weekly Flows By Asset Class
Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
U.S. Equity | 8,469.57 | 2,140,545.84 | 0.40% |
International Equity | -3,090.46 | 744,454.67 | -0.42% |
U.S. Fixed Income | -4,618.99 | 802,615.07 | -0.58% |
International Fixed Income | -1,658.95 | 92,045.51 | -1.80% |
Commodities ETFs | 671.52 | 90,956.19 | 0.74% |
Currency | 47.59 | 1,545.17 | 3.08% |
Leveraged | 3,261.98 | 34,057.66 | 9.58% |
Inverse | 137.69 | 14,352.89 | 0.96% |
Asset Allocation | 24.94 | 9,318.90 | 0.27% |
Alternatives | -337.90 | 5,138.56 | -6.58% |
Total: | 2,906.99 | 3,935,030.46 | 0.07% |
Asset Classes (Year-to-Date)
Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
U.S. Equity | 31,792.62 | 2,140,545.84 | 1.49% |
International Equity | 7,676.67 | 744,454.67 | 1.03% |
U.S. Fixed Income | 34,653.19 | 802,615.07 | 4.32% |
International Fixed Income | 3,318.94 | 92,045.51 | 3.61% |
Commodities ETFs | 5,952.40 | 90,956.19 | 6.54% |
Currency | 202.32 | 1,545.17 | 13.09% |
Leveraged | 6,324.96 | 34,057.66 | 18.57% |
Inverse | 316.98 | 14,352.89 | 2.21% |
Asset Allocation | 174.55 | 9,318.90 | 1.87% |
Alternatives | -622.96 | 5,138.56 | -12.12% |
Total: | 89,789.66 | 3,935,030.46 | 2.28% |
Top 10 Volume Surprises, Funds >$50 mm AUM
Ticker | Name | Average Volume (30 Day) | 1 Week Average Volume | % of Average |
HEWU | iShares Currency Hedged MSCI United Kingdom ETF | 15,391 | 79,058 | 513.67% |
IGHG | ProShares Investment Grade-Interest Rate Hedged ETF | 54,314 | 246,246 | 453.37% |
XMPT | VanEck Vectors CEF Municipal Income ETF | 70,567 | 255,449 | 362.00% |
HUSV | First Trust Horizon Managed Volatility Domestic ETF | 120,989 | 483,137 | 399.32% |
NRGZ | MicroSectors U.S. Big Oil Index -2X Inverse Leveraged ETN | 293 | 1,197 | 408.50% |
CVY | Invesco Zacks Multi-Asset Income ETF | 47,586 | 162,189 | 340.83% |
DJD | Invesco Dow Jones Industrial Average Dividend ETF | 51,515 | 173,865 | 337.51% |
FLEE | Franklin FTSE Europe ETF | 55,237 | 125,425 | 227.07% |
FXH | First Trust Health Care AlphaDEX Fund | 136,240 | 450,462 | 330.64% |
FDRR | Fidelity Dividend ETF for Rising Rates | 97,663 | 279,072 | 285.75% |
Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded
Ticker | Name | Weekly Performance | Weekly Volume | AUM ($, mm) |
EVIX | VelocityShares 1X Long VSTOXX Futures ETN | 32.48% | 215,193 | 3.74 |
VXX | iPath Series B S&P 500 VIX Short Term Futures ETN | 29.64% | 293,428,150 | 1,189.15 |
VIXY | ProShares VIX Short-Term Futures ETF | 29.14% | 35,594,649 | 294.06 |
VIIX | VelocityShares Daily Long VIX Short-Term ETN | 28.99% | 1,272,991 | 48.33 |
XVZ | iPath S&P 500 Dynamic VIX ETN | 25.33% | 124,310 | 8.46 |
VXZ | iPath Series B S&P 500 VIX Mid-Term Futures ETN | 15.73% | 1,558,291 | 32.48 |
VIXM | ProShares VIX Mid-Term Futures ETF | 15.03% | 861,726 | 38.96 |
UNG | United States Natural Gas Fund LP | 9.16% | 28,608,926 | 405.66 |
GAZ | iPath Series B Bloomberg Natural Gas Subindex Total Return ETN | 9.09% | 12,761 | 2.75 |
UNL | United States 12 Month Natural Gas Fund LP | 7.66% | 58,589 | 3.11 |
Top 10 YTD Performers
Ticker | Name | YTD Performance | Weekly Performance | AUM ($, mm) |
EVIX | VelocityShares 1X Long VSTOXX Futures ETN | 218.16% | 32.48% | 3.74 |
VIIX | VelocityShares Daily Long VIX Short-Term ETN | 213.94% | 28.99% | 48.33 |
VIXY | ProShares VIX Short-Term Futures ETF | 213.44% | 29.14% | 294.06 |
VXX | iPath Series B S&P 500 VIX Short Term Futures ETN | 213.23% | 29.64% | 1,189.15 |
XVZ | iPath S&P 500 Dynamic VIX ETN | 83.65% | 25.33% | 8.46 |
VIXM | ProShares VIX Mid-Term Futures ETF | 63.41% | 15.03% | 38.96 |
VXZ | iPath Series B S&P 500 VIX Mid-Term Futures ETN | 63.39% | 15.73% | 32.48 |
TAIL | Cambria Tail Risk ETF | 26.88% | 6.44% | 106.74 |
MOM | AGFiQ U.S. Market Neutral Momentum Fund | 24.10% | 3.81% | 1.40 |
ZROZ | PIMCO 25+ Year Zero Coupon US Treasury Index ETF | 23.96% | -6.40% | 456.22 |
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.