ETF Inflows Continue Amid S&P 500 Losing Streak

Year-to-date ETF inflows ticked up to $608 billion.

sumit
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Senior ETF Analyst
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Reviewed by: Sumit Roy
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Edited by: Sumit Roy

The relentless climb in U.S. stocks took a breather this week, but investors kept adding money to their ETF holdings. The weekly inflows were modest—$458 million into U.S. equity ETFs and $5.7 billion into U.S.-listed ETFs overall—but enough to push the year-to-date haul further over $600 billion.

On net, investors have added $607.7 billion to U.S.-listed ETFs since the start of the year.

Of this week’s inflows, the majority went into international equity ETFs—$2.5 billion. That was followed by the $2 billion that went into U.S. fixed income ETFs and the aforementioned $458 million into U.S. equity ETFs.

Selling Streak

U.S. stocks experienced a rare streak of selling over the past week. Stocks fell in four-straight sessions between last Friday and this Thursday. Markets were closed on Monday for the Labor Day holiday.

As of this writing, Friday was shaping up to be a down day too, but even after multiple days in the red, the S&P 500 is only down 1% from its all-time high.

Overall sentiment remains optimistic despite the ongoing COVID-19 pandemic and expectations that the Federal Reserve may begin tapering its bond buying program later this year.

Speaking of bonds, the U.S. 10-year Treasury yield hovered in place over the past week and was last seen at 1.34%. That leaves it well off the 1.74% high from March and up modestly from the 1.17% low from August.

KWEB Adds To Haul

In terms of individual ETF flows, the iShares U.S. Real Estate ETF (IYR), the SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV) topped the weekly inflows list, with creations of $1 billion or more each.

The KraneShares CSI China Internet ETF (KWEB) also made an appearance on the list, with inflows of $674 million. KWEB has been an absolute hit with bargain-hunting investors this year, raking in $6 billion in inflows since the start of the year.

Prices for the fund are another matter; year-to-date, the ETF is down almost 32% amid the crackdown on internet firms by the Chinese government.

Top Outflows

Meanwhile, on the outflows side of the ledger, the Invesco QQQ Trust (QQQ), the Financial Select Sector SPDR Fund (XLF) and the Technology Select Sector SPDR Fund (XLK) saw the largest redemptions during the week—$950 million or more.

The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) was another loser, with outflows of almost $800 million. Though up from their lows of July, high yield bond spreads remain historically tight, with investors asking for relatively little yield in exchange for the risk of investing in lower quality corporate bonds.

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
IYRiShares U.S. Real Estate ETF1,626.937,740.8621.02%
SPYSPDR S&P 500 ETF Trust1,454.49402,502.480.36%
IVViShares Core S&P 500 ETF999.28306,344.400.33%
KWEBKraneShares CSI China Internet ETF674.178,095.648.33%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF431.3542,635.011.01%
VXUSVanguard Total International Stock ETF390.4551,856.070.75%
JPSTJPMorgan Ultra-Short Income ETF337.0218,068.451.87%
GOVTiShares U.S. Treasury Bond ETF331.5615,757.752.10%
BNDVanguard Total Bond Market ETF327.6681,863.480.40%
SPYGSPDR Portfolio S&P 500 Growth ETF293.7014,619.522.01%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
QQQInvesco QQQ Trust-1,660.49195,082.31-0.85%
XLFFinancial Select Sector SPDR Fund-1,515.4340,968.48-3.70%
XLKTechnology Select Sector SPDR Fund-954.8345,756.95-2.09%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-798.7019,221.50-4.16%
XLIIndustrial Select Sector SPDR Fund-786.3518,016.52-4.36%
QUALiShares MSCI USA Quality Factor ETF-483.0224,957.55-1.94%
XLBMaterials Select Sector SPDR Fund-451.707,925.79-5.70%
ARKKARK Innovation ETF-369.8721,820.50-1.70%
IGSBiShares 1-5 Year Investment Grade Corporate Bond ETF-369.3325,009.72-1.48%
XBISPDR S&P Biotech ETF-264.257,306.17-3.62%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity457.994,029,223.250.01%
International Equity2,450.831,315,871.270.19%
U.S. Fixed Income1,998.381,078,599.730.19%
International Fixed Income539.16150,160.830.36%
Commodities-42.98137,701.97-0.03%
Currency-9.411,904.53-0.49%
Leveraged-61.2763,921.28-0.10%
Inverse223.3612,218.141.83%
Asset Allocation200.3418,542.361.08%
Alternatives-39.566,706.50-0.59%
Total:5,716.846,814,849.860.08%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity288,933.344,029,223.257.17%
International Equity165,050.231,315,871.2712.54%
U.S. Fixed Income117,644.621,078,599.7310.91%
International Fixed Income28,349.15150,160.8318.88%
Commodities-3,466.56137,701.97-2.52%
Currency25.991,904.531.36%
Leveraged-676.0363,921.28-1.06%
Inverse5,462.4012,218.1444.71%
Asset Allocation3,780.1418,542.3620.39%
Alternatives2,558.786,706.5038.15%
Total:607,662.066,814,849.868.92%

 

Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
CHBGlobal X China Biotech Innovation ETF4.74%2,0535.94
GAZiPath Series B Bloomberg Natural Gas Subindex Total Return ETN4.66%28,1846.62
UNGUnited States Natural Gas Fund LP4.63%16,300,552287.86
CHIEGlobal X MSCI China Energy ETF4.53%32,2133.91
UNLUnited States 12 Month Natural Gas Fund LP 3.62%50,14912.91
URNMNorth Shore Global Uranium Mining ETF3.62%1,284,600502.98
CHIMGlobal X MSCI China Materials ETF3.40%13,1546.69
FCAFirst Trust China AlphaDEX Fund3.17%1,33011.56
CHICGlobal X MSCI China Communication Services ETF3.16%9,20813.21
ASHSXtrackers Harvest CSI 500 China-A Shares Small Cap ETF3.06%42,57740.52

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
BDRYBreakwave Dry Bulk Shipping ETF259.35%1.13%83.76
GRNiPath Series B Carbon ETN94.56%1.67%80.83
UNGUnited States Natural Gas Fund LP86.74%4.63%287.86
URNMNorth Shore Global Uranium Mining ETF81.03%3.62%502.98
GAZiPath Series B Bloomberg Natural Gas Subindex Total Return ETN80.27%4.66%6.62
JJTiPath Series B Bloomberg Tin Subindex Total Return ETN77.82%-3.08%13.88
REMXVanEck Rare Earth/Strategic Metals ETF72.56%-0.46%1,030.84
UNLUnited States 12 Month Natural Gas Fund LP 69.57%3.62%12.91
KRBNKraneShares Global Carbon ETF65.73%0.77%798.20
FCGFirst Trust Natural Gas ETF63.44%-1.31%244.99

 

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.

Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.