ETFs Barely Break Even In Turbulent Week

U.S.-listed ETFs gained a relatively tiny net inflow of $430.8 million last week after another 50 basis point rate hike from the Fed sent markets tumbling on Friday. 

The U.S. ETF industry has garnered $192.4 billion in net inflows year to date as of Friday, according to ETF.com data provider FactSet, and has $6.6 trillion in assets. 

Bond Inflows Curb Equity Losses 

U.S.-focused bond funds led all asset classes last week, with $3.4 billion in new assets, canceling out the approximately $2.9 billion in outflows from U.S. equity ETFs. 

The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) led all ETFs, with approximately $1.7 billion in net inflows, followed by the iShares National Muni Bond ETF (MUB) and the Vanguard Mortgage-Backed Securities ETF (VMBS), with $795 million and $747 million, respectively. 

Bond investors also flocked to super-safe short-term Treasury assets, with the iShares 1-3 Year Treasury Bond ETF (SHY) and the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) adding $663 million and $603 million, respectively. 

The Vanguard Total Stock Market ETF (VTI) was the top equity gainer on the week, with $633 million in new assets, while the Utilities Select Sector SPDR Fund (XLU) added $530 million. 

It wasn’t all risk-off last week, with the iShares Russell 1000 Growth ETF (IWF) adding $590 million and the ARK Innovation ETF (ARKK) taking in $512 million. 

Widespread Fallout 

Outflows varied across asset classes and sectors last week, with the SPDR S&P Dividend ETF (SDY) seeing the largest loss of all funds, with $2.1 billion pulled. However, the move appears to be the second leg of a tax-minimizing heartbeat trade that began the week prior. 

The Schwab U.S. TIPS ETF (SCHP) was second on the top outflows list, shedding $2.1 billion. 

The Financial Select Sector SPDR Fund (XLF) led equity fund losses with a $1.5 billion outflow as investors questioned broader economic growth conditions, while the Energy Select Sector SPDR Fund (XLE) lost $1.1 billion. The SPDR S&P 500 ETF Trust (SPY) saw a decrease of $900 million. 

The SPDR Gold Trust (GLD) was the lone commodity fund on the top 10 outflows list, losing $741 million. 

For a full list of last week’s top inflows and outflows, see the tables below: 

Top 10 Creations (All ETFs)

Top 10 Redemptions (All ETFs)

ETF Weekly Flows By Asset Class

Asset Classes (Year-to-Date)

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

Top 10 YTD Performers

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.