Investors Flock To Fixed Income ETFs

Fixed income ETFs powered this week’s net inflows of $6 billion.

sumit
|
Senior ETF Analyst
|
Reviewed by: Sumit Roy
,
Edited by: Sumit Roy

Investors tiptoed back into ETFs this week after pulling money out of the space in August. On net, nearly $6 billion flowed into U.S.-listed ETFs during the week ending Thursday, Sep. 5, according to FactSet. That puts year-to-date inflows at $150.7 billion, less than the $176.1 billion at this same time last year.

As seen all year long, most of this week’s inflows went into U.S. fixed income ETFs. That segment picked up $3.7 billion, led by a $1.1 billion inflow into the iShares 20+ Year Treasury Bond ETF (TLT).

The iShares 7-10 Year Treasury Bond ETF (IEF), the Vanguard Intermediate-Term Corporate Bond ETF (VCIT), the iShares 1-3 Year Treasury Bond ETF (SHY) and the iShares 3-7 Year Treasury Bond ETF (IEI) also saw strong interest during the week.

Markets continue to expect the Fed to cut rates later this month, but yields on Treasuries spiked from their recent lows following the release of better-than-expected economic data and word that the U.S. and China would hold trade talks next month.

Investors Tepid On Equities

Meanwhile, on the equities side, a modest $258 million and $942 million flowed into U.S. and international ETFs, respectively.

Stocks bounced back thanks to better economic data and trade talk hopes, but growth concerns kept investors from adding to their holdings more aggressively.

The Vanguard Total Stock Market ETF (VTI), the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) and the iShares Edge MSCI Min Vol U.S.A. ETF (USMV) were among the most popular equity ETFs of the week.

The VanEck Vectors Gold Miners ETF (GDX) also saw some interest as gold prices hit fresh six-year highs. The SPDR Gold Trust (GLD) had inflows of nearly half a billion of its own during the week.

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

 

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
TLTiShares 20+ Year Treasury Bond ETF1,090.4317,864.086.10%
IEFiShares 7-10 Year Treasury Bond ETF820.3319,141.494.29%
VCITVanguard Intermediate-Term Corporate Bond ETF578.4624,654.062.35%
SHYiShares 1-3 Year Treasury Bond ETF501.6418,180.762.76%
VTIVanguard Total Stock Market ETF496.73118,814.720.42%
GLDSPDR Gold Trust473.2344,226.621.07%
OMFLInvesco Russell 1000 Dynamic Multifactor ETF469.521,526.7030.75%
USMViShares Edge MSCI Min Vol U.S.A. ETF358.3033,959.031.06%
GDXVanEck Vectors Gold Miners ETF343.3512,563.772.73%
IEIiShares 3-7 Year Treasury Bond ETF319.347,869.774.06%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
HYGiShares iBoxx USD High Yield Corporate Bond ETF-720.6816,617.63-4.34%
SPYSPDR S&P 500 ETF Trust-543.89262,271.45-0.21%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF-539.7135,915.87-1.50%
IWMiShares Russell 2000 ETF-365.2839,313.87-0.93%
IJRiShares Core S&P Small Cap ETF-315.5442,608.03-0.74%
XLVHealth Care Select Sector SPDR Fund-302.0216,482.42-1.83%
SHViShares Short Treasury Bond ETF-265.4124,063.72-1.10%
DIASPDR Dow Jones Industrial Average ETF Trust-250.6621,241.10-1.18%
IWViShares Russell 3000 ETF-205.819,426.49-2.18%
SPTLSPDR Portfolio Long Term Treasury ETF-194.502,565.21-7.58%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity258.272,247,118.060.01%
International Equity941.71792,067.360.12%
U.S. Fixed Income3,724.20720,574.560.52%
International Fixed Income403.4182,095.290.49%
Commodities 619.4981,765.340.76%
Currency15.551,500.981.04%
Leveraged-482.4936,940.57-1.31%
Inverse384.7512,623.393.05%
Asset Allocation47.299,940.820.48%
Alternatives78.164,476.701.75%
Total:5,990.343,989,103.060.15%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity48,039.882,247,118.062.14%
International Equity-3,245.60792,067.36-0.41%
U.S. Fixed Income88,767.33720,574.5612.32%
International Fixed Income11,478.3582,095.2913.98%
Commodities 6,517.2781,765.347.97%
Currency-287.401,500.98-19.15%
Leveraged-5,968.9336,940.57-16.16%
Inverse4,816.3412,623.3938.15%
Asset Allocation83.439,940.820.84%
Alternatives474.334,476.7010.60%
Total:150,675.003,989,103.063.78%

 

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.

Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.