Investors Flock to Bonds as Equities Slump

U.S. equity exchange-traded funds shed $6.2 billion last week.  

ShubhamSaharan_white_bg
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Reviewed by: Shubham Saharan
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Edited by: Shubham Saharan

Investors piled into bond exchange-traded funds as equity markets posted losses on fears of sticky inflation.  

U.S. equity ETFs shed $6.2 billion in the week ending Feb. 24 as recently released economic data indicated that the Federal Reserve may keep interest rates higher for longer than anticipated. Equity markets posted their third straight week of declines as the S&P 500 slumped 3.3% during the week, while the Nasdaq dipped 3.3%. That marks the worst performance for the indexes in over two months.  

Funds that lost the most assets included the SPDR S&P 500 ETF Trust (SPY), the iShares Core S&P 500 ETF (IVV) and the Invesco QQQ Trust (QQQ). The three funds collectively bled $4.8 billion, according to ETF.com data. This is the fourth consecutive week of losses for SPY, the oldest and largest U.S.-listed ETF.  

Meanwhile, U.S. fixed income ETFs brought in $4.1 billion compared with the $2.1 billion the asset class lost in the week ending Feb. 17. Investors seemed to largely embrace a risk-off approach, as six of the 10 top-performing ETFs of the week were Treasury bill related.  

The three top-performing ETFs of the week were the iShares Short Treasury Bond ETF (SHV), the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) and the iShares 0-3 Month Treasury Bond ETF (SGOV), which hauled in nearly $6 billion, ETF.com data shows.  

The inflows come as yield on short duration Treasury bills such as the one-, three- and six-month notes hit 4.6%, 4.8% and 5.1%, respectively. On Monday, the policy-sensitive two-year Treasury bill hit 4.8%, its highest level since 2007. Yields rise as prices fall.  

 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
SHViShares Short Treasury Bond ETF2,970.0023,291.1612.75%
BILSPDR Bloomberg 1-3 Month T-Bill ETF1,786.7526,120.636.84%
SGOViShares 0-3 Month Treasury Bond ETF1,199.017,746.5415.48%
SPTSSPDR Portfolio Short Term Treasury ETF870.175,473.8915.90%
BNDVanguard Total Bond Market ETF850.0487,761.720.97%
JPSTJPMorgan Ultra-Short Income ETF683.4224,974.192.74%
GBILGoldman Sachs Access Treasury 0-1 Year ETF611.025,308.0311.51%
TLTiShares 20+ Year Treasury Bond ETF574.8630,375.311.89%
JEPIJPMorgan Equity Premium Income ETF407.9121,163.581.93%
VOOVanguard S&P 500 ETF365.24276,874.400.13%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust-2,306.54365,585.50-0.63%
IVViShares Core S&P 500 ETF-1,843.62300,626.12-0.61%
JNKSPDR Bloomberg High Yield Bond ETF-1,518.687,336.16-20.70%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF-991.5733,168.95-2.99%
QQQInvesco QQQ Trust-654.33157,898.29-0.41%
EMBiShares JP Morgan USD Emerging Markets Bond ETF-618.7415,385.77-4.02%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-570.9713,182.85-4.33%
IWFiShares Russell 1000 Growth ETF-549.6559,519.05-0.92%
SPTLSPDR Portfolio Long Term Treasury ETF-524.646,017.30-8.72%
IEFiShares 7-10 Year Treasury Bond ETF-523.0522,814.51-2.29%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-6,215.264,029,210.71-0.15%
International Equity224.741,231,448.760.02%
U.S. Fixed Income4,058.491,180,810.690.34%
International Fixed Income-643.92145,458.82-0.44%
Commodities-243.45129,581.28-0.19%
Currency22.643,649.210.62%
Leveraged916.4551,784.241.77%
Inverse-403.6825,456.63-1.59%
Asset Allocation-56.1616,119.42-0.35%
Alternatives-26.737,553.33-0.35%
Total:-2,366.896,821,073.09-0.03%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-3,865.094,029,210.71-0.10%
International Equity27,216.331,231,448.762.21%
U.S. Fixed Income18,115.611,180,810.691.53%
International Fixed Income5,396.88145,458.823.71%
Commodities392.81129,581.280.30%
Currency-355.093,649.21-9.73%
Leveraged-31.9951,784.24-0.06%
Inverse5,345.7325,456.6321.00%
Asset Allocation-1,812.1316,119.42-11.24%
Alternatives73.487,553.330.97%
Total:50,476.526,821,073.090.74%

 

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
KSETKraneShares Global Carbon Offset Strategy ETF17.14%4,7952.83
BDRYBreakwave Dry Bulk Shipping ETF12.75%3,514,42782.52
UNGUnited States Natural Gas Fund LP11.93%104,137,3961,197.21
GAZiPath Series B Bloomberg Natural Gas Subindex Total Return ETN11.76%691,73327.94
UNLUnited States 12 Month Natural Gas Fund LP8.17%89,45714.21
NGEGlobal X MSCI Nigeria ETF3.56%39,37840.91
ZROZPIMCO 25+ Year Zero Coupon US Treasury Index ETF3.16%832,449772.29
GOVZiShares 25+ Year Treasury STRIPS Bond ETF3.05%475,427324.18
SMHVanEck Semiconductor ETF3.04%12,827,1897,498.45
SEAU.S. Global Sea to Sky Cargo ETF2.95%10,9263.70

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
WGMIValkyrie Bitcoin Miners ETF84.56%-2.83%5.36
DAMVanEck Digital Assets Mining ETF73.32%-2.30%1.30
DAPPVanEck Digital Transformation ETF65.17%-1.34%28.77
BITQBitwise Crypto Industry Innovators ETF62.83%-1.43%56.63
SATOInvesco Alerian Galaxy Crypto Economy ETF53.16%-0.65%2.74
IBLCiShares Blockchain and Tech ETF51.81%0.63%6.03
BITSGlobal X Blockchain and Bitcoin Strategy ETF50.50%-1.44%9.99
NFTZDefiance Digital Revolution ETF47.56%-0.23%5.01
GFOFGrayscale Future of Finance ETF45.26%-1.54%4.97
BITOProShares Bitcoin Strategy ETF44.78%-2.10%802.65

 

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.

Shubham Saharan is a markets reporter at etf.com. Before joining the company, she reported for Bloomberg and the Financial Times. Saharan is a graduate of Barnard College of Columbia University.