ETFs Notch Another $24B

Inflation and the threat of a Russia-Ukraine war didn’t shake equity inflows.

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Reviewed by: Dan Mika
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Edited by: Dan Mika

The U.S. ETF industry added just over $24 billion in fresh assets last week, shaking off another year-over-year inflation reading above 7% and continuing tensions in Eastern Europe. 

U.S.-listed ETFs have posted inflows of just under $81.5 billion year-to-date, according to ETF.com data provider FactSet, and manage $6.9 trillion. 

Split Of The S&P 500 Funds Continue 

The largest S&P 500 trackers continued to split. The cheap-beta iShares Core S&P 500 ETF (IVV) led all funds by inflows, with a fresh $5.7 billion in assets, followed by the Vanguard S&P 500 ETF (VOO) at $4.6 billion and a rare large inflow for the SPDR Portfolio S&P 500 ETF (SPLG), of $782.6 million. 

SPLG, which tracks the S&P 500 at a cost of 3 basis points, tends to be overshadowed by its older brother, the SPDR S&P 500 ETF Trust (SPY). However, SPY continued to bleed assets, with a $1.5 billion outflow on the week, and more than $22.3 billion in outflows year-to-date. 

The Invesco QQQ Trust (QQQ) had the largest outflows on the week, losing just over $3.5 billion in assets, as the high inflation print puts more pressure on the Federal Reserve to raise interest rates. 

Defensive Plays Abound 

Risk-off strategies took in billions last week, with the Vanguard Value ETF (VTV) adding $4.7 billion and the Schwab U.S. Dividend Equity ETF (SCHD) adding $1.8 billion. The inflows to those funds suggest some investors are less optimistic that growth stocks will continue to appreciate in value. 

Short-term bonds were also popular, with the Vanguard Short-Term Corporate Bond ETF (VCSH) and the iShares 0-3 Month Treasury Bond ETF (SGOV) adding $1.6 billion and $785 million, respectively. 

However, the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) lost $941.6 million in the period. 

Corporate Bonds, TIPS Sell Off 

The U.S. fixed income class was the only asset class to lose ETF assets on the week, with outflows of $3.9 billion, and corporate bonds took the brunt of the losses. 

The iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) and the iShares iBoxx High Yield Corporate Bond ETF (HYG) lost approximately $4 billion combined as credit spreads widen. The ICE BofA US High Yield Index Option-Adjusted Spread Index has spiked 55 basis points since the start of the year to 3.66%, while its investment-grade counterpart has added 10 points. 

Inflation-protected Treasury funds also appeared among the largest losers for the week, mirroring a January slide for the largest TIPS fund. The Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and the iShares TIPS Bond ETF (TIP) lost a combined $2 billion in the period. 

The combined sell-off is curious. TIP and similar funds with high effective durations were selling off in January due to their exposure to rate-hike risk, but VTIP’s 2.5-year duration is among the lowest in the U.S. 

 

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
IVViShares Core S&P 500 ETF5,738.99327,704.771.75%
VTVVanguard Value ETF4,665.4299,939.434.67%
VOOVanguard S&P 500 ETF3,242.81283,556.381.14%
SCHDSchwab U.S. Dividend Equity ETF1,871.9834,223.735.47%
XLFFinancial Select Sector SPDR Fund1,626.0851,071.293.18%
VCSHVanguard Short-Term Corporate Bond ETF1,595.2842,360.703.77%
VOVanguard Mid-Cap ETF1,357.7356,194.432.42%
SMHVanEck Semiconductor ETF1,250.858,770.7414.26%
SGOViShares 0-3 Month Treasury Bond ETF785.141,760.1844.61%
SPLGSPDR Portfolio S&P 500 ETF782.5914,167.365.52%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
QQQInvesco QQQ Trust-3,536.05187,223.92-1.89%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF-2,087.0032,691.41-6.38%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-1,918.4016,588.50-11.56%
IWMiShares Russell 2000 ETF-1,851.5559,344.04-3.12%
SPYSPDR S&P 500 ETF Trust-1,521.11407,711.38-0.37%
VTIPVanguard Short-Term Inflation-Protected Securities ETF-1,227.7118,553.63-6.62%
BILSPDR Bloomberg 1-3 Month T-Bill ETF-941.5614,560.54-6.47%
TIPiShares TIPS Bond ETF-791.9133,672.50-2.35%
IJJiShares S&P Mid-Cap 400 Value ETF-790.337,819.89-10.11%
FDNFirst Trust Dow Jones Internet Index Fund-644.527,514.49-8.58%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity19,088.324,180,691.100.46%
International Equity5,406.471,309,643.150.41%
U.S. Fixed Income-3,939.891,061,237.07-0.37%
International Fixed Income1,026.03159,104.890.64%
Commodities1,636.60146,707.481.12%
Currency156.293,265.684.79%
Leveraged347.2567,197.300.52%
Inverse98.1014,259.310.69%
Asset Allocation75.0619,996.240.38%
Alternatives119.797,130.131.68%
Total:24,014.036,969,232.360.34%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity42,567.884,180,691.101.02%
International Equity31,221.061,309,643.152.38%
U.S. Fixed Income-11,102.481,061,237.07-1.05%
International Fixed Income3,930.13159,104.892.47%
Commodities6,401.60146,707.484.36%
Currency136.873,265.684.19%
Leveraged5,038.1067,197.307.50%
Inverse2,574.3714,259.3118.05%
Asset Allocation479.3419,996.242.40%
Alternatives214.677,130.133.01%
Total:81,461.556,969,232.361.17%

 

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
BNGEFirst Trust S-Network Streaming & Gaming ETF204.90%64,0952.60
BDRYBreakwave Dry Bulk Shipping ETF16.76%1,006,05766.49
POTXGlobal X Cannabis ETF11.88%987,49089.81
CNBSAmplify Seymour Cannabis ETF8.13%248,63377.07
THCXThe Cannabis ETF7.90%217,94364.18
PGJInvesco Golden Dragon China ETF7.89%337,843223.37
BUDXCannabis Growth ETF7.66%9,0583.83
MJUSETFMG U.S. Alternative Harvest ETF7.39%35,0084.54
EPUiShares MSCI Peru ETF7.30%289,649205.85
MJETFMG Alternative Harvest ETF7.29%6,259,733745.24

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
OIHVanEck Oil Services ETF27.14%-0.68%2,715.24
RYEInvesco S&P 500 Equal Weight Energy ETF23.57%-1.25%454.89
IEZiShares U.S. Oil Equipment & Services ETF23.35%-0.93%137.63
XLEEnergy Select Sector SPDR Fund23.28%-1.95%34,864.75
RJNElements Rogers International Commodity Index-Energy TR ETN22.73%-0.63%8.37
JHMEJohn Hancock Multifactor Energy ETF22.66%-1.43%26.58
VDEVanguard Energy ETF21.76%-1.78%7,312.77
FENYFidelity MSCI Energy Index ETF21.54%-1.91%1,297.70
XESSPDR S&P Oil & Gas Equipment & Services ETF21.39%-0.31%198.90
IXCiShares Global Energy ETF21.16%-1.27%1,820.17

 

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.