Investors Buy Into Small Caps, ESG in Strong Week for ETF Inflow
Flows into U.S. equity exchange-traded funds accelerated last week.
A cool $18.1 billion flowed into U.S.-listed exchange-traded funds last week as investors bought into small cap stocks.
Aggregate year-to-date inflows for all ETFs now stand at $169.2 billion, which compares to $281.7 billion at this same time a year ago.
While still well behind last year’s pace, the latest batch of inflows helped to narrow the gap. A stealth rally in the S&P 500, which has pushed the index more than 20% above its October lows, has certainly helped.
Investors are now even starting to embrace U.S. stock ETFs after having shunned them for much of this year.
U.S. equity ETFs have year-to-date inflows of $31.7 billion—behind the $44.8 billion of inflows for international equity ETFs and the $81.3 billion of inflows for U.S. fixed income ETFs—but much better than where they were just a few weeks ago (around zero).
Smaller Stocks Embraced
About a third of this year’s inflows into U.S. stock ETFs came last week, and leading the way was the iShares Russell 2000 ETF (IWM), which gathered $3.4 billion in new assets during the week ending Friday, June 9.
IWM has been surging since the start of the month, as investors reason that an end to the Fed’s rate hikes will provide support for smaller firms.
On a month-to-date basis, IWM is up 7.1%, more than double the 3.3% gain for the SPDR S&P 500 ETF Trust (SPY). However, on a year-to-date basis, the small cap fund is still lagging, with a return of 7.1% versus 13.3%.
Some investors have been betting that the performance gap between smaller stocks and larger stocks will close in the second half of the year.
That would be helpful for not just IWM, but the Invesco S&P 500 Equal Weight ETF (RSP) as well. That fund took the No. 4 spot on the weekly inflows list, with creations of $1.1 billion.
Sandwiched between IWM and RSP on the top weekly inflows list is the iShares Climate Conscious & Transition MSCI USA ETF (USCL), a brand new ESG fund that secured a $2.1 billion investment from Finland’s largest pension insurance company.
For a full list of last week’s top inflows and outflows, see the tables below:
Top 10 Creations (All ETFs)
Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
IWM | iShares Russell 2000 ETF | 3,385.57 | 56,551.58 | 5.99% |
USCL | iShares Climate Conscious & Transition MSCI USA ETF | 2,119.13 | 2,121.63 | 99.88% |
IEFA | iShares Core MSCI EAFE ETF | 1,467.04 | 97,970.08 | 1.50% |
RSP | Invesco S&P 500 Equal Weight ETF | 1,067.69 | 35,061.49 | 3.05% |
QQQM | Invesco NASDAQ 100 ETF | 1,059.28 | 12,252.01 | 8.65% |
SPY | SPDR S&P 500 ETF Trust | 907.85 | 406,971.68 | 0.22% |
VOO | Vanguard 500 Index Fund | 812.98 | 306,046.67 | 0.27% |
EFA | iShares MSCI EAFE ETF | 722.35 | 49,461.24 | 1.46% |
IEMG | iShares Core MSCI Emerging Markets ETF | 704.34 | 71,027.38 | 0.99% |
EWJ | iShares MSCI Japan ETF | 685.07 | 12,231.84 | 5.60% |
Top 10 Redemptions (All ETFs)
Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
SUSL | iShares ESG MSCI USA Leaders ETF | -2,118.81 | 1,225.11 | -172.95% |
QQQ | Invesco QQQ Trust | -1,963.19 | 190,299.06 | -1.03% |
SPY | SPDR S&P 500 ETF Trust | -1,167.55 | 406,971.68 | -0.29% |
SPYG | SPDR Portfolio S&P 500 Growth ETF | -920.93 | 16,708.97 | -5.51% |
FXZ | First Trust Materials AlphaDEX Fund | -721.70 | 761.90 | -94.72% |
LQD | iShares iBoxx USD Investment Grade Corporate Bond ETF | -665.93 | 34,542.07 | -1.93% |
XONE | BondBloxx Bloomberg One Year Target Duration US Treasury ETF | -509.47 | 187.61 | -271.56% |
XLE | Energy Select Sector SPDR Fund | -506.37 | 34,890.07 | -1.45% |
SOXX | iShares Semiconductor ETF | -482.14 | 8,571.89 | -5.62% |
TQQQ | ProShares UltraPro QQQ | -476.18 | 15,338.20 | -3.10% |
ETF Weekly Flows By Asset Class
Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
U.S. Equity | 9,298.56 | 4,242,038.63 | 0.22% |
International Equity | 7,269.74 | 1,278,278.36 | 0.57% |
U.S. Fixed Income | 2,345.65 | 1,246,597.50 | 0.19% |
International Fixed Income | 1,031.16 | 149,009.80 | 0.69% |
Commodities | -720.44 | 135,438.12 | -0.53% |
Currency | -96.35 | 2,975.53 | -3.24% |
Leveraged | -714.11 | 63,499.95 | -1.12% |
Inverse | -380.06 | 20,939.57 | -1.82% |
Asset Allocation | 5.87 | 15,826.33 | 0.04% |
Alternatives | 42.59 | 7,126.30 | 0.60% |
Total: | 18,082.60 | 7,161,730.09 | 0.25% |
Asset Classes (Year-to-Date)
Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
U.S. Equity | 31,699.79 | 4,242,038.63 | 0.75% |
International Equity | 44,780.87 | 1,278,278.36 | 3.50% |
U.S. Fixed Income | 81,320.98 | 1,246,597.50 | 6.52% |
International Fixed Income | 9,260.48 | 149,009.80 | 6.21% |
Commodities | 119.40 | 135,438.12 | 0.09% |
Currency | -980.38 | 2,975.53 | -32.95% |
Leveraged | -21.58 | 63,499.95 | -0.03% |
Inverse | 5,391.93 | 20,939.57 | 25.75% |
Asset Allocation | -2,417.76 | 15,826.33 | -15.28% |
Alternatives | 49.95 | 7,126.30 | 0.70% |
Total: | 169,203.67 | 7,161,730.09 | 2.36% |
Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded
Ticker | Name | Weekly Performance | Weekly Volume | AUM ($, mm) |
KSET | KraneShares Global Carbon Offset Strategy ETF | 17.51% | 58,633 | 0.98 |
BWET | Breakwave Tanker Shipping ETF | 10.52% | 6,441 | 3.13 |
KBWR | Invesco KBW Regional Banking ETF | 8.23% | 84,963 | 64.12 |
QABA | First Trust NASDAQ ABA Community Bank Index Fund | 7.91% | 197,809 | 81.12 |
KRE | SPDR S&P Regional Banking ETF | 7.15% | 104,227,236 | 3,547.69 |
CHIR | Global X MSCI China Real Estate ETF | 6.79% | 16,436 | 6.21 |
XRT | SPDR S&P Retail ETF | 6.54% | 28,206,542 | 542.98 |
XSVM | Invesco S&P SmallCap Value with Momentum ETF | 6.19% | 327,859 | 609.78 |
RZV | Invesco S&P SmallCap 600 Pure Value ETF | 6.15% | 35,341 | 239.75 |
PSCF | Invesco S&P SmallCap Financials ETF | 6.11% | 5,792 | 22.81 |
Top 10 YTD Performers
Ticker | Name | YTD Performance | Weekly Performance | AUM ($, mm) |
WGMI | Valkyrie Bitcoin Miners ETF | 134.00% | 0.48% | 9.89 |
DAPP | VanEck Digital Transformation ETF | 110.11% | 0.54% | 35.66 |
BITQ | Bitwise Crypto Industry Innovators ETF | 99.41% | -0.15% | 72.83 |
BKCH | Global X Blockchain ETF | 88.51% | 66.90 | |
SATO | Invesco Alerian Galaxy Crypto Economy ETF | 87.03% | 0.73% | 3.67 |
IBLC | iShares Blockchain and Tech ETF | 75.73% | -0.09% | 6.88 |
BITS | Global X Blockchain and Bitcoin Strategy ETF | 72.58% | 1.57% | 11.11 |
FNGS | MicroSectors FANG+ ETN | 65.96% | -0.19% | 96.11 |
BITO | ProShares Bitcoin Strategy ETF | 57.47% | 3.98% | 855.28 |
XBTF | VanEck Bitcoin Strategy ETF | 56.60% | 3.99% | 39.43 |
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.