ETF Inflows Start 2019 On Strong Note

During the new year's first full week of trading, ETFs saw net inflows of $8.1 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

After a strong 2018, ETF flows started the new year on a positive note. For the first full week of 2019, U.S.-listed ETFs witnessed inflows of $8.1 billion, adding to the $315.4 billion worth of inflows from last year, the second-largest annual haul ever.

Year-to-date inflows now stand at $12.6 billion after seven trading sessions.

Credit Rallies

The latest weekly data, which captures flows for the week ending Thursday, Jan. 10, showed that the largest share of inflows headed for U.S. fixed income ETFs. Beaten-down corporate and emerging market bond funds were the biggest winners.

The iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), the iShares iBoxx USD High Yield Corporate Bond ETF (HYG) and the iShares JP Morgan USD Emerging Markets Bond ETF (EMB) each had weekly inflows of $848 million or more.

In contrast, relatively safe Treasury and short-term bond ETFs weren’t nearly as popular. The iShares 20+ Year Treasury Bond ETF (TLT) and the Vanguard Short-Term Bond ETF (BSV) both made the top outflows list.

‘QUAL’ Inflows Offset By Others

Other than fixed income, the other area to garner favor from investors this week was international equity. ETFs tied to that asset class picked up $3.4 billion in new money, with $862 million of that making its way into the iShares Core MSCI Emerging Markets ETF (IEMG).

On the flip side, U.S. equity ETFs didn’t get much love from investors this week. A net $2.2 billion flowed out of the segment, even as the iShares Edge MSCI U.S.A. Quality Factor ETF (QUAL) picked up a sizable $1.5 billion in fresh cash.

That was more than offset by outflows from the likes of the SPDR S&P 500 ETF Trust (SPY) and the Financial Select Sector SPDR Fund (XLF).

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
QUALiShares Edge MSCI U.S.A. Quality Factor ETF1,518.468,492.2117.88%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF995.8431,015.233.21%
HYGiShares iBoxx USD High Yield Corporate Bond ETF960.0914,388.956.67%
IEMGiShares Core MSCI Emerging Markets ETF862.3351,799.331.66%
EMBiShares JP Morgan USD Emerging Markets Bond ETF848.1015,404.095.51%
SHViShares Short Treasury Bond ETF628.9821,066.982.99%
USFRWisdomTree Floating Rate Treasury Fund586.951,789.3532.80%
AGGiShares Core U.S. Aggregate Bond ETF458.7357,769.210.79%
SMHVanEck Vectors Semiconductor ETF450.471,156.2938.96%
IWViShares Russell 3000 ETF418.779,576.114.37%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust-1,814.02244,488.08-0.74%
XLFFinancial Select Sector SPDR Fund-788.0623,673.96-3.33%
TLTiShares 20+ Year Treasury Bond ETF-738.029,144.52-8.07%
BSVVanguard Short-Term Bond ETF-714.4127,212.55-2.63%
VGTVanguard Information Technology ETF-616.5217,131.62-3.60%
QQQInvesco QQQ Trust-612.8562,478.60-0.98%
XLYConsumer Discretionary Select Sector SPDR Fund-512.4211,777.66-4.35%
IVEiShares S&P 500 Value ETF-430.9914,933.71-2.89%
IWDiShares Russell 1000 Value ETF-424.5138,416.10-1.11%
FLOTiShares Floating Rate Bond ETF-342.7310,920.09-3.14%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-2,209.291,954,325.23-0.11%
International Equity3,444.18768,243.040.45%
U.S. Fixed Income5,280.10604,209.060.87%
International Fixed Income1,168.0067,404.531.73%
Commodities 348.2964,601.830.54%
Currency-84.781,699.15-4.99%
Leveraged-548.5332,773.01-1.67%
Inverse709.9112,036.425.90%
Asset Allocation-19.159,646.55-0.20%
Alternatives35.035,050.360.69%
Total:8,123.753,519,989.170.23%

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-6,233.341,954,325.23-0.32%
International Equity5,310.09768,243.040.69%
U.S. Fixed Income10,632.72604,209.061.76%
International Fixed Income1,377.4167,404.532.04%
Commodities 770.9764,601.831.19%
Currency-107.711,699.15-6.34%
Leveraged-468.2832,773.01-1.43%
Inverse1,262.0012,036.4210.48%
Asset Allocation51.919,646.550.54%
Alternatives-11.755,050.36-0.23%
Total:12,584.023,519,989.170.36%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
Volume
% of Average
ARCMArrow Reserve Capital Management ETF8562,751321.32%
XRLVInvesco S&P 500 ex-Rate Sensitive Low Volatility ETF57,236158,206276.41%
DEFInvesco Defensive Equity ETF39,06397,742250.22%
VGITVanguard Intermediate-Term Treasury Index ETF810,1101,894,874233.90%
DMRIDeltaShares S&P International Managed Risk ETF3,4216,850200.23%
BEMOAptus Behavioral Momentum ETF23,95045,048188.09%
FYTFirst Trust Small Cap Value AlphaDEX Fund22,18940,962184.61%
ISTBiShares Core 1-5 Year USD Bond ETF566,862999,388176.30%
DMRLDeltaShares S&P 500 Managed Risk ETF4,4337,549170.26%
DRSKAptus Defined Risk ETF34,92955,278158.26%

 

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.