ETF Weekly Inflow Streak Since Election Ends

The streak of weekly inflows into ETFs was snapped 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

For the first week since the November elections, investors took money out of exchange-traded funds―but just barely. Outflows from U.S.-listed ETFs totaled $415 million in the week ending Thursday, March 23. That snapped a 19-week win streak for ETFs, and pushed the year-to-date inflows total down to $124.9 billion.  

Failure to pass an Obamacare replacement bill in the House of Representatives raised concerns that it will be more difficult to enact the pro-growth policies that President Trump promised, such as tax cuts and deregulation. On Friday, a vote on the health care bill was delayed for a second time after Republican leaders said there weren't enough votes for it to pass. 

The S&P 500 dropped almost 2% during the week, and saw its first 1% down day since October on Tuesday. In turn, U.S. equity ETFs saw the largest outflows, to the tune of $9.3 billion.

On the other hand, international equity ETFs picked up the slack, taking in $4.4 billion. U.S. fixed-income and international fixed-income ETFs also garnered favor amid safe-haven buying, with inflows of $3.9 billion and $800 million, respectively. 

The U.S. 10-year Treasury bond yield dipped from 2.5% to 2.4% week-over-week.

Emerging Markets ETFs Pick Up Assets 
In terms of individual ETFs, the iShares Russell 2000 ETF (IWM) and the iShares Core MSCI Emerging Markets ETF (IEMG) were the biggest winners, with inflows of $2.6 billion and $1.4 billion, respectively.

Small-caps got hit harder than their large-cap counterparts this week, which likely prompted some bargain buying.

Taking the No. 3 spot on the inflows list was the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), with inflows of $1.1 billion. Stabilization in oil prices near the $48/barrel level helped junk bond prices edge up from recent lows.

Meanwhile, the aforementioned IEMG wasn't the only emerging markets-focused ETF to make the weekly top 10. Others included the iShares JP Morgan USD Emerging Markets Bond ETF (EMB) and the Vanguard FTSE Emerging Markets ETF (VWO), with creations of $619 million and $456 million, respectively.

XLF & DIA Register Outflows
On the outflows side, the SPDR S&P 500 ETF (SPY) had $3.9 billion worth of redemptions. That was followed by the Vanguard Dividend Appreciation Index Fund (VIG), with outflows of $1.6 billion.

The SPDR Dow Jones Industrial Average Trust (DIA) was another loser, with outflows of $706 million. At the same time, the Financial Select Sector SPDR Fund (XLF) saw redemptions of $614 million. XLF had a lousy week in terms of performance, as the ETF plunged more than 4%.

Finally, rounding out the top 10 outflows list was an international name: the Deutsche X-trackers MSCI Japan Hedged Equity ETF (DBJP), with outflows of $406 million.

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
IWMiShares Russell 2000 ETF2,637.4338,254.137.41%
IEMGiShares Core MSCI Emerging Markets ETF1,381.8426,580.785.48%
HYGiShares iBoxx $ High Yield Corporate Bond ETF1,136.0217,565.686.91%
QQQPowerShares QQQ Trust740.1446,462.921.62%
EMBiShares JP Morgan USD Emerging Markets Bond ETF619.099,752.256.78%
IVViShares Core S&P 500 ETF534.96101,069.260.53%
VEAVanguard FTSE Developed Markets ETF510.0647,395.261.09%
VWOVanguard FTSE Emerging Markets ETF455.7551,053.400.90%
EZUiShares MSCI Eurozone ETF390.778,655.424.73%
VOOVanguard S&P 500 Index Fund321.8863,855.200.51%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust-3,852.33238,595.81-1.59%
VIGVanguard Dividend Appreciation Index Fund-1,620.7323,633.06-6.42%
MDYSPDR S&P Midcap 400 ETF Trust-731.7319,471.99-3.62%
VBVanguard Small-Cap Index Fund-727.2117,585.64-3.97%
DIASPDR Dow Jones Industrial Average ETF Trust-706.0716,143.72-4.19%
XLFFinancial Select Sector SPDR Fund-613.9923,600.19-2.54%
VYMVanguard High Dividend Yield Index Fund-583.8417,724.44-3.19%
VBRVanguard Small Cap Value Index Fund-573.5910,848.83-5.02%
IJHiShares Core S&P Mid-Cap ETF-411.1738,300.74-1.06%
DBJPDeutsche X-trackers MSCI Japan Hedged Equity ETF-406.201,747.92-18.86%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-9,266.211,593,193.51-0.58%
International Equity4,377.78583,994.250.75%
U.S. Fixed Income3,851.26440,095.610.88%
International Fixed Income785.5044,413.341.77%
Commodities-91.9263,577.60-0.14%
Currency-60.462,857.92-2.12%
Leveraged59.1026,451.360.22%
Inverse-118.4817,230.31-0.69%
Asset Allocation-1.756,627.62-0.03%
Alternatives49.943,837.811.30%
Total:-415.232,782,279.34-0.01%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
Volume
% of Average
FTXOFirst Trust Nasdaq Bank ETF291,9791,669,824571.90%
XRLVPowerShares S&P 500 ex-Rate Sensitive Low Volatility Portfolio150,414974,678648.00%
EZYWisdomTree LargeCap Value Fund7,12837,207521.96%
JHMLJohn Hancock Multifactor Large Cap ETF64,387237,510368.88%
LOWCSPDR MSCI ACWI Low Carbon Target ETF1,2343,904316.21%
JHMMJohn Hancock Multifactor Mid Cap ETF35,011107,535307.14%
FXNFirst Trust Energy AlphaDEX Fund1,471,6955,782,680392.93%
RTHVanEck Vectors Retail ETF24,42973,665301.55%
QDFFlexShares Quality Dividend Index Fund182,750674,496369.08%
MLPQETRACS 2xMonthly Leveraged Alerian MLP Infrastructure Index ETN Series B4,66912,189261.08%

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.