ETF Flows Slow As Stocks Peak

S&P 500, Nasdaq Composite hit new all-time highs earlier this week.

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Reviewed by: Dan Mika
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Edited by: Dan Mika
Investors slowed their piling into ETFs in the past week, putting in a little less than a net $12.15 billion into funds after adding a gargantuan $38 billion last week, according to ETF.com data provider FactSet.

Despite the week-over-week drop, the flows into U.S.-listed ETFs between June 18 and June 24 this year are 228% higher than the net flows of $3.7 billion recorded during the same period last year after a national resurgence of COVID-19 spooked investors to take $5.8 billion out of equity ETFs.

Approximately $6.47 trillion in assets is currently held in U.S. ETFs, compared to $4.33 trillion during the same time last year. Nearly $468 billion has flowed into ETFs this year, amounting to more than 7% of all the assets under management.

Heartbeat Trades Slow US Equities

The net inflow into U.S. equities dropped considerably week-over-week, from $27.3 million last week to $5.8 billion in the most recent period.

It’s possible the drop was due to heartbeat trades—trades designed to minimize tax liability during fund rebalancing that tend to occur at the end of a month.

Take the Vanguard Growth Fund (VUG), which led all ETFs, with net inflows of $2.83 billion last week and led outflows with $2.51 billion in the most recent period, leaving the fund with approximately $315 million in growth over the two weeks.

The redemptions didn’t hit evenly across every fund, though. The Vanguard Total Stock Market ETF (VTI) posted inflows of $2.52 billion last week and saw outflows of $821.88 million this week, leaving it a net $1.7 billion larger.

Russell Indexed-Funds Lead

Despite the net drop in inflows, ETFs tracking Russell indexes continued to charge forward as the S&P 500 and Nasdaq Composite reached new highs this week, with traders shaking off the Federal Reserve’s hawkish signaling last week.

The fund posting the highest inflows during the week was the iShares Russell 1000 Growth ETF (IWF), with a $6.77 billion net gain. Other Russell index gainers included:

 

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

 

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IWFiShares Russell 1000 Growth ETF6,773.8374,568.639.08%
SPYSPDR S&P 500 ETF Trust4,758.14366,491.081.30%
IWPiShares Russell Mid-Cap Growth ETF2,322.9017,825.6213.03%
IWNiShares Russell 2000 Value ETF1,923.7418,999.0510.13%
IWDiShares Russell 1000 Value ETF1,650.9655,005.793.00%
QQQInvesco QQQ Trust1,617.27170,813.900.95%
VONGVanguard Russell 1000 Growth ETF856.177,406.3611.56%
IWRiShares Russell Mid-Cap ETF796.4930,109.552.65%
IYRiShares U.S. Real Estate ETF745.557,388.4810.09%
ARKKARK Innovation ETF714.1123,752.923.01%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
VUGVanguard Growth ETF-2,511.8277,698.77-3.23%
XLFFinancial Select Sector SPDR Fund-2,262.3440,759.86-5.55%
VOVanguard Mid-Cap ETF-1,492.1949,441.83-3.02%
VBVanguard Small-Cap ETF-1,168.2446,769.44-2.50%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF-1,010.4839,514.37-2.56%
VTVVanguard Value ETF-954.5081,293.44-1.17%
RSPInvesco S&P 500 Equal Weight ETF-909.1028,315.25-3.21%
SPHQInvesco S&P 500 Quality ETF -838.912,892.20-29.01%
VTIVanguard Total Stock Market ETF-821.88249,765.97-0.33%
KOMPSPDR S&P Kensho New Economies Composite ETF-735.632,106.26-34.93%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity5,808.253,777,534.340.15%
International Equity1,961.951,276,077.890.15%
U.S. Fixed Income3,826.551,035,262.730.37%
International Fixed Income288.50141,642.370.20%
Commodities-323.82141,815.15-0.23%
Currency35.791,923.891.86%
Leveraged272.6858,817.730.46%
Inverse85.3111,935.910.71%
Asset Allocation61.8016,163.360.38%
Alternatives131.316,444.522.04%
Total:12,148.306,467,617.880.19%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity224,629.583,777,534.345.95%
International Equity135,475.541,276,077.8910.62%
U.S. Fixed Income79,280.011,035,262.737.66%
International Fixed Income20,331.37141,642.3714.35%
Commodities-502.37141,815.15-0.35%
Currency32.241,923.891.68%
Leveraged677.5958,817.731.15%
Inverse3,875.1111,935.9132.47%
Asset Allocation1,983.5916,163.3612.27%
Alternatives2,133.376,444.5233.10%
Total:467,916.026,467,617.887.23%

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
BDRYBreakwave Dry Bulk Shipping ETF262.08%2.99%103.22
ILCViShares Morningstar Value ETF129.48%1.66%714.11
PSCEInvesco S&P SmallCap Energy ETF86.04%7.41%217.42
FCGFirst Trust Natural Gas ETF84.43%7.28%293.70
PXEInvesco Dynamic Energy Exploration & Production ETF83.38%7.14%92.51
PXIInvesco DWA Energy Momentum ETF76.28%6.91%211.37
FRAKVanEck Vectors Unconventional Oil & Gas ETF72.83%6.99%19.16
MLPOCredit Suisse S&P MLP Index ETN69.79%14.51%24.99
GRNiPath Series B Carbon ETN67.54%4.89%58.08
XOPSPDR S&P Oil & Gas Exploration & Production ETF67.20%7.00%4,445.68

 

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.

Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.