ETFs Gain $2.6B As Russia Rattles Markets

Russia’s invasion of Ukraine has weekly flows at nearly neutral.

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Reviewed by: Dan Mika
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Edited by: Dan Mika

The outbreak of war in Europe threw markets into a deeply risk-off mood last week as U.S.-listed ETFs added just $2.6 billion in assets from Feb. 21 to Feb. 25. 

According to ETF.com data provider FactSet, the U.S. ETF industry has accumulated approximately $93.8 billion in new assets year-to-date and manages $6.7 trillion.

(Partial) Flight To Safety

The top gainers of the week were a mix of growth stocks and flights into the relatively safe world of bonds.

The Invesco QQQ Trust (QQQ) led inflows with just over $2 billion, despite the technology benchmark index dropping 5.5% last week. The triple-leveraged ProShares UltraPro QQQ (TQQQ) added nearly $1.1 billion in the same period.

Semiconductors had a strong week on concerns that the Russia-Ukraine crisis would disrupt the supply of materials needed to produce sought-after chips, such as neon gas used to etch patterns into silicon. The VanEck Semiconductor ETF (SMH) added $512.6 million, while the Direxion Daily Semiconductor Bull 3X Shares (SOXL) took in $437.6 million.

But while the U.S. equity asset class lost $2.2 billion on the week, U.S. fixed income funds took in nearly $2.6 billion as more cautious investors looked to pull out of the risk that the conflict in Europe poses. 

The iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), which led bond funds with a $1.6 billion inflow, was the lone corporate debt fund in the top 10, followed by the iShares Short Treasury Bond ETF (SHV), with $1.4 billion in new assets. The iShares 7-10 Year Treasury Bond ETF (IEF) added $565 million, while the iShares 20+ Year Treasury Bond ETF (TLT) took in $455 million. 

SPY, Corporate Debt Lose Out 

The biggest loser on the week was an outlier: the SPDR Gold MiniShares Trust (GLDM). The fund saw a massive $2.2 billion outflow last Wednesday after a quiet 12 months, amounting to almost half of its assets under management. That sale may have been a profit-taking move as the price of gold moved higher as a defensive asset in the first days of war. 

 

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SPY continued to bleed assets by losing $1.9 billion on the week, while the iShares Core S&P 500 ETF (IVV) lost $1.1 billion. 

Three sector-specific ETFs also appeared on the top 10 outflows list despite being well-positioned to benefit from additional inflation pressures stemming from the conflict or the Federal Reserve’s rate hikes. 

The Financial Select Sector SPDR Fund (XLF) lost $695.5 million, while the Energy Select Sector SPDR Fund (XLE) and iShares U.S. Real Estate ETF (IYR) lost $483.5 million and $456.9 million, respectively. 

Although the investment-grade LQD got plenty of love last week, investors ditched junk and short-term high quality bond funds en masse. The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) lost just shy of $826 million, while the SPDR Bloomberg High Yield Bond ETF (JNK) and the Vanguard Short-Term Corporate Bond ETF (VCSH) lost almost $600 million and nearly $405 million, respectively. 
 

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

 

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
QQQInvesco QQQ Trust2,026.92181,466.381.12%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF1,671.6234,085.614.90%
SHViShares Short Treasury Bond ETF1,447.9815,740.629.20%
TQQQProShares UltraPro QQQ1,099.1216,315.006.74%
VOOVanguard S&P 500 ETF1,086.07270,943.190.40%
IEFiShares 7-10 Year Treasury Bond ETF565.0717,228.513.28%
SMHVanEck Semiconductor ETF512.668,867.145.78%
TLTiShares 20+ Year Treasury Bond ETF455.0815,816.142.88%
SOXLDirexion Daily Semiconductor Bull 3X Shares437.615,480.547.98%
VTVVanguard Value ETF429.9396,315.060.45%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
GLDMSPDR Gold MiniShares Trust-2,271.854,630.23-49.07%
SPYSPDR S&P 500 ETF Trust-1,972.70384,380.40-0.51%
IVViShares Core S&P 500 ETF-1,152.54311,140.25-0.37%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-825.9315,666.83-5.27%
XLFFinancial Select Sector SPDR Fund-695.5045,944.79-1.51%
JNKSPDR Bloomberg High Yield Bond ETF-599.967,048.74-8.51%
XLEEnergy Select Sector SPDR Fund-483.5434,015.05-1.42%
IYRiShares U.S. Real Estate ETF-456.906,335.67-7.21%
IVWiShares S&P 500 Growth ETF-429.7033,382.96-1.29%
VCSHVanguard Short-Term Corporate Bond ETF-404.9742,162.12-0.96%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-2,211.893,999,060.24-0.06%
International Equity2,440.621,242,321.680.20%
U.S. Fixed Income2,584.281,065,982.390.24%
International Fixed Income-72.07158,243.36-0.05%
Commodities-1,548.85156,849.55-0.99%
Currency-8.983,137.17-0.29%
Leveraged1,839.4261,547.542.99%
Inverse-91.9615,325.40-0.60%
Asset Allocation-128.2119,443.98-0.66%
Alternatives-132.097,203.48-1.83%
Total:2,670.276,729,114.800.04%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity43,004.323,999,060.241.08%
International Equity34,217.251,242,321.682.75%
U.S. Fixed Income-5,565.061,065,982.39-0.52%
International Fixed Income5,087.03158,243.363.21%
Commodities6,205.86156,849.553.96%
Currency159.683,137.175.09%
Leveraged7,212.5861,547.5411.72%
Inverse2,881.4215,325.4018.80%
Asset Allocation387.6419,443.981.99%
Alternatives188.097,203.482.61%
Total:93,778.816,729,114.801.39%

 

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
HAPYHarbor Corporate Culture Leaders ETF19,906,100.00%165,49442,162.12
BNGEFirst Trust S-Network Streaming & Gaming ETF185.43%353,0823.62
GRUELEMENTS Linked to ICE BofAML Commodity index eXtra Grains - Total Return ETN10.94%193,1358.86
DSPCThe De-SPAC ETF9.33%58,7121.41
WEATTeucrium Wheat Fund8.61%10,856,652132.37
VCLOSimplify Volt Cloud and Cybersecurity Disruption ETF7.92%43,10812.71
TANInvesco Solar ETF7.73%3,251,4401,982.33
RAYSGlobal X Solar ETF7.20%8,4408.63
ICLNiShares Global Clean Energy ETF6.90%24,914,8254,721.65
ACESALPS Clean Energy ETF6.42%252,183694.71

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
GLDMSPDR Gold MiniShares Trust107.70%0.00%4,630.23
SARKTuttle Capital Short Innovation ETF33.41%-4.14%374.53
RJNElements Rogers International Commodity Index-Energy TR ETN30.68%4.55%7.61
UNGUnited States Natural Gas Fund LP30.42%3.96%347.83
GAZiPath Series B Bloomberg Natural Gas Subindex Total Return ETN29.26%3.79%12.11
VXXiPath Series B S&P 500 VIX Short Term Futures ETN29.11%2.42%971.70
VIXYProShares VIX Short-Term Futures ETF28.68%2.25%368.97
UNLUnited States 12 Month Natural Gas Fund LP28.24%4.26%27.03
OIHVanEck Oil Services ETF28.19%0.09%2,795.77
SOGUThe Short De-SPAC ETF27.53%-6.16%28.36

 

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.

Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.