ETF Investors Buy The Dip
On net, investors added more than $20 billion to U.S.-listed ETFs this week.
A midweek interest rate scare didn’t stop investors from adding to their ETF holdings this week. On net, a cool $20.2 billion flowed into U.S.-listed ETFs during the week ending Thursday, Feb. 25, bringing year-to-date inflows up to $145 billion. That compares to the $77.2 billion seen at this same time a year ago.
The U.S. 10-year Treasury yield briefly topped 1.6% on Thursday, a one-year high, and up significantly from the 0.91% seen at the start of the year.
Bond prices, which move inversely to bond yields, were hammered. The iShares 20+ Year Treasury Bond ETF (TLT) shed more than 1% week-over-week, taking its year-to-date loss to more than 10%.
Unsurprisingly, TLT and other bond ETFs were among the biggest flows losers of the week. U.S. fixed income ETFs as a group registered outflows of $2.5 billion, led by the aforementioned TLT, the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) and the Vanguard Intermediate Term Corporate Bond ETF (VCIT).
Equities Unfazed
In contrast to fixed income ETFs, which shed assets, U.S. equity ETFs saw strong demand. Granted, there were some concerns with regard to growth stocks during the week—higher rates diminish the value of future cash flows—but those worries never got out of hand.
The high-flying ARK Innovation ETF (ARKK) had its largest daily outflow on record on Wednesday ($465 million), but for the week as a whole, the ETF eked out an inflow of $9 million. In fact, no ARK funds made an appearance on the weekly top outflows list, while one made an appearance on the top inflows list: the ARK Fintech Innovation ETF (ARKF).
Other in-demand ETFs during the week included the iShares Core S&P 500 ETF (IVV), the SPDR S&P 500 ETF Trust (SPY) and the Financial Select Sector SPDR Fund (XLF).
XLF, in particular, benefited from the steepening of the yield curve. The difference between the five-year and 30-year Treasury bond yields reached a 6.5-year high above 1.6% during the week.
For a full list of this week’s top inflows and outflows, see the tables below:
Top 10 Creations (All ETFs)
Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
IVV | iShares Core S&P 500 ETF | 2,471.90 | 253,767.50 | 0.97% |
SPY | SPDR S&P 500 ETF Trust | 2,145.17 | 337,298.85 | 0.64% |
XLF | Financial Select Sector SPDR Fund | 2,075.45 | 34,478.34 | 6.02% |
IWM | iShares Russell 2000 ETF | 1,255.62 | 67,680.94 | 1.86% |
TQQQ | ProShares UltraPro QQQ | 1,101.40 | 10,849.78 | 10.15% |
VOO | Vanguard S&P 500 ETF | 935.17 | 197,150.98 | 0.47% |
VTI | Vanguard Total Stock Market ETF | 645.58 | 216,639.85 | 0.30% |
VXUS | Vanguard Total International Stock ETF | 640.93 | 42,652.97 | 1.50% |
BUG | Global X Cybersecurity ETF | 591.28 | 876.06 | 67.49% |
ARKF | ARK Fintech Innovation ETF | 552.39 | 4,807.56 | 11.49% |
Top 10 Redemptions (All ETFs)
Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
JNK | SPDR Bloomberg Barclays High Yield Bond ETF | -1,769.28 | 9,239.30 | -19.15% |
LQD | iShares iBoxx USD Investment Grade Corporate Bond ETF | -1,603.87 | 45,427.97 | -3.53% |
GLD | SPDR Gold Trust | -1,526.53 | 63,997.95 | -2.39% |
XLK | Technology Select Sector SPDR Fund | -526.17 | 38,167.90 | -1.38% |
VCIT | Vanguard Intermediate-Term Corporate Bond ETF | -457.99 | 43,416.70 | -1.05% |
TLT | iShares 20+ Year Treasury Bond ETF | -438.90 | 14,075.57 | -3.12% |
IEF | iShares 7-10 Year Treasury Bond ETF | -419.80 | 13,887.77 | -3.02% |
USMV | iShares MSCI USA Min Vol Factor ETF | -362.43 | 28,880.34 | -1.25% |
PFF | iShares Preferred and Income Securities ETF | -335.71 | 17,838.62 | -1.88% |
ACWV | iShares MSCI Global Min Vol Factor ETF | -328.27 | 5,290.29 | -6.21% |
ETF Weekly Flows By Asset Class
Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
U.S. Equity | 15,831.38 | 3,317,665.09 | 0.48% |
International Equity | 6,158.51 | 1,180,051.90 | 0.52% |
U.S. Fixed Income | -2,549.77 | 974,096.55 | -0.26% |
International Fixed Income | 584.98 | 129,015.60 | 0.45% |
Commodities | -1,545.70 | 141,808.76 | -1.09% |
Currency | 24.03 | 2,018.89 | 1.19% |
Leveraged | 1,710.17 | 52,263.99 | 3.27% |
Inverse | -95.02 | 11,933.55 | -0.80% |
Asset Allocation | 37.91 | 14,156.98 | 0.27% |
Alternatives | 82.68 | 6,285.03 | 1.32% |
Total: | 20,239.18 | 5,829,296.34 | 0.35% |
Asset Classes (Year-to-Date)
Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
U.S. Equity | 53,992.02 | 3,317,665.09 | 1.63% |
International Equity | 60,983.46 | 1,180,051.90 | 5.17% |
U.S. Fixed Income | 18,642.44 | 974,096.55 | 1.91% |
International Fixed Income | 7,424.80 | 129,015.60 | 5.75% |
Commodities | -612.58 | 141,808.76 | -0.43% |
Currency | 103.38 | 2,018.89 | 5.12% |
Leveraged | 690.78 | 52,263.99 | 1.32% |
Inverse | 2,127.25 | 11,933.55 | 17.83% |
Asset Allocation | 607.99 | 14,156.98 | 4.29% |
Alternatives | 1,067.00 | 6,285.03 | 16.98% |
Total: | 145,026.54 | 5,829,296.34 | 2.49% |
Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded
Ticker | Name | Weekly Performance | Weekly Volume | AUM ($, mm) |
JMBS | Janus Henderson Mortgage-Backed Securities ETF | 0.00% | 57,879 | 692.09 |
AADR | AdvisorShares Dorsey Wright ADR ETF | 0.00% | 1,979 | 83.83 |
ABEQ | Absolute Core Strategy ETF | 0.00% | 62,156 | 40.60 |
ACES | ALPS Clean Energy ETF | 0.00% | 153,189 | 1,020.04 |
ACIO | Aptus Collared Income Opportunity ETF | 0.00% | 22,745 | 182.94 |
ACSI | American Customer Satisfaction ETF | 0.00% | 12,138 | 72.18 |
ACTV | LeaderShares Activist Leaders ETF | 0.00% | 3,249 | 53.02 |
ACVF | American Conservative Values ETF | 0.00% | 1,159 | 5.15 |
ACWF | iShares MSCI Global Multifactor ETF | 0.00% | 9,637 | 97.59 |
ACWI | iShares MSCI ACWI ETF | 0.00% | 2,012,281 | 15,108.62 |
Top 10 YTD Performers
Ticker | Name | YTD Performance | Weekly Performance | AUM ($, mm) |
CNBS | Amplify Seymour Cannabis ETF | 81.95% | 0.00% | 139.41 |
POTX | Global X Cannabis ETF | 74.34% | 0.00% | 228.21 |
BDRY | Breakwave Dry Bulk Shipping ETF | 73.25% | 0.00% | 31.70 |
THCX | The Cannabis ETF | 66.72% | 0.00% | 184.30 |
MJ | ETFMG Alternative Harvest ETF | 62.09% | 0.00% | 1,816.63 |
YOLO | AdvisorShares Pure Cannabis ETF | 52.59% | 0.00% | 441.77 |
BLOK | Amplify Transformational Data Sharing ETF | 48.63% | 0.00% | 1,145.57 |
TOKE | Cambria Cannabis ETF | 45.50% | 0.00% | 37.14 |
PXE | Invesco Dynamic Energy Exploration & Production ETF | 42.60% | 0.00% | 24.02 |
PSCE | Invesco S&P SmallCap Energy ETF | 41.91% | 0.00% | 71.15 |
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.