ETF Investors Buy The Dip

On net, investors added more than $20 billion to U.S.-listed ETFs this week.

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

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)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IVViShares Core S&P 500 ETF2,471.90253,767.500.97%
SPYSPDR S&P 500 ETF Trust2,145.17337,298.850.64%
XLFFinancial Select Sector SPDR Fund2,075.4534,478.346.02%
IWMiShares Russell 2000 ETF1,255.6267,680.941.86%
TQQQProShares UltraPro QQQ1,101.4010,849.7810.15%
VOOVanguard S&P 500 ETF935.17197,150.980.47%
VTIVanguard Total Stock Market ETF645.58216,639.850.30%
VXUSVanguard Total International Stock ETF640.9342,652.971.50%
BUGGlobal X Cybersecurity ETF591.28876.0667.49%
ARKFARK Fintech Innovation ETF552.394,807.5611.49%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
JNKSPDR Bloomberg Barclays High Yield Bond ETF-1,769.289,239.30-19.15%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF-1,603.8745,427.97-3.53%
GLDSPDR Gold Trust-1,526.5363,997.95-2.39%
XLKTechnology Select Sector SPDR Fund-526.1738,167.90-1.38%
VCITVanguard Intermediate-Term Corporate Bond ETF-457.9943,416.70-1.05%
TLTiShares 20+ Year Treasury Bond ETF-438.9014,075.57-3.12%
IEFiShares 7-10 Year Treasury Bond ETF-419.8013,887.77-3.02%
USMViShares MSCI USA Min Vol Factor ETF-362.4328,880.34-1.25%
PFFiShares Preferred and Income Securities ETF-335.7117,838.62-1.88%
ACWViShares MSCI Global Min Vol Factor ETF-328.275,290.29-6.21%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity15,831.383,317,665.090.48%
International Equity6,158.511,180,051.900.52%
U.S. Fixed Income-2,549.77974,096.55-0.26%
International Fixed Income584.98129,015.600.45%
Commodities-1,545.70141,808.76-1.09%
Currency24.032,018.891.19%
Leveraged1,710.1752,263.993.27%
Inverse-95.0211,933.55-0.80%
Asset Allocation37.9114,156.980.27%
Alternatives82.686,285.031.32%
Total:20,239.185,829,296.340.35%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity53,992.023,317,665.091.63%
International Equity60,983.461,180,051.905.17%
U.S. Fixed Income18,642.44974,096.551.91%
International Fixed Income7,424.80129,015.605.75%
Commodities-612.58141,808.76-0.43%
Currency103.382,018.895.12%
Leveraged690.7852,263.991.32%
Inverse2,127.2511,933.5517.83%
Asset Allocation607.9914,156.984.29%
Alternatives1,067.006,285.0316.98%
Total:145,026.545,829,296.342.49%

 

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
JMBSJanus Henderson Mortgage-Backed Securities ETF0.00%57,879692.09
AADRAdvisorShares Dorsey Wright ADR ETF0.00%1,97983.83
ABEQAbsolute Core Strategy ETF0.00%62,15640.60
ACESALPS Clean Energy ETF0.00%153,1891,020.04
ACIOAptus Collared Income Opportunity ETF0.00%22,745182.94
ACSIAmerican Customer Satisfaction ETF0.00%12,13872.18
ACTVLeaderShares Activist Leaders ETF0.00%3,24953.02
ACVFAmerican Conservative Values ETF0.00%1,1595.15
ACWFiShares MSCI Global Multifactor ETF0.00%9,63797.59
ACWIiShares MSCI ACWI ETF0.00%2,012,28115,108.62

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
CNBSAmplify Seymour Cannabis ETF81.95%0.00%139.41
POTXGlobal X Cannabis ETF74.34%0.00%228.21
BDRYBreakwave Dry Bulk Shipping ETF73.25%0.00%31.70
THCXThe Cannabis ETF66.72%0.00%184.30
MJETFMG Alternative Harvest ETF62.09%0.00%1,816.63
YOLOAdvisorShares Pure Cannabis ETF52.59%0.00%441.77
BLOKAmplify Transformational Data Sharing ETF48.63%0.00%1,145.57
TOKECambria Cannabis ETF45.50%0.00%37.14
PXEInvesco Dynamic Energy Exploration & Production ETF42.60%0.00%24.02
PSCEInvesco S&P SmallCap Energy ETF41.91%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.

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.