Investors Plow Into Treasury ETFs This Week

U.S. fixed income ETFs had inflows of $10.4 billion, most of that targeted at Treasury bond ETFs.

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

Treasuries, Treasuries and more Treasuries. That’s what ETF investors were interested in this week as bond prices surged and interest rates tumbled. All throughout the week, expectations grew that the Federal Reserve will cut interest rates later this year, as economic data weakens and the U.S. fights trade wars on multiple fronts.

The benchmark U.S. 10-year Treasury yield plunged to as low as 2.05%. The yield accelerated to the downside after payroll processor ADP reported that private employers only added 27,000 jobs in May. The official government jobs report on Friday wasn’t as weak, but also showed a marked deceleration in job growth, with nonfarm payrolls increasing by only 75,000.

Futures markets now expect the Fed to cut rates as early as the July meeting, and then again in September.

Hefty Treasury ETF Inflows

With rate cut expectations picking up steam, investors plowed $10.4 billion into U.S. fixed income ETFs, including billions into the iShares 7-10 Year Treasury Bond ETF (IEF), the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL).

Seven of the 10 ETFs on the top inflows list were bond funds, most of them focused on Treasuries.

Safe haven gold also caught a bid; the SPDR Gold Trust (GLD) garnered weekly inflows of $694 million.

Net Outflows For Equity ETFs

On the flip side, U.S. equity ETFs and international equity ETFs had modest outflows this week. The S&P 500 fell as much as 7.6% below its all-time high before snapping back vigorously on Fed rate cut hopes.

The Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) were the biggest equity ETF flows winners. On the other hand, the Invesco QQQ Trust (QQQ), the SPDR S&P 500 ETF Trust (SPY) and the iShares MSCI Japan ETF (EWJ) topped the outflows list.

Year-to-date inflows for all U.S.-listed ETFs now stand at $75.2 billion, compared with $119.7 billion at this same time last year.

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
IEFiShares 7-10 Year Treasury Bond ETF1,844.7116,169.0611.41%
BILSPDR Bloomberg Barclays 1-3 Month T-Bill ETF1,313.159,236.1914.22%
ITESPDR Bloomberg Barclays Intermediate Term Treasury ETF933.451,662.5456.15%
SHViShares Short Treasury Bond ETF916.7021,236.804.32%
SHYiShares 1-3 Year Treasury Bond ETF768.8120,853.333.69%
VOOVanguard S&P 500 ETF763.97109,805.450.70%
GLDSPDR Gold Trust693.9532,506.192.13%
AGGiShares Core U.S. Aggregate Bond ETF650.0762,635.311.04%
SPTLSPDR Portfolio Long Term Treasury ETF606.332,525.6224.01%
IVViShares Core S&P 500 ETF604.32174,664.530.35%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
QQQInvesco QQQ Trust-735.9367,809.84-1.09%
SPYSPDR S&P 500 ETF Trust-678.22255,862.67-0.27%
EWJiShares MSCI Japan ETF-579.0012,308.88-4.70%
BKLNInvesco Senior Loan ETF-557.254,109.48-13.56%
XLFFinancial Select Sector SPDR Fund-474.4923,484.67-2.02%
MDYSPDR S&P Midcap 400 ETF Trust-423.8718,700.95-2.27%
JNKSPDR Bloomberg Barclays High Yield Bond ETF-380.777,855.52-4.85%
XLKTechnology Select Sector SPDR Fund-359.7120,241.25-1.78%
EZUiShares MSCI Eurozone ETF-345.326,044.32-5.71%
VTIVanguard Total Stock Market ETF-343.43111,230.84-0.31%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-744.672,148,428.78-0.03%
International Equity-2,302.19801,791.54-0.29%
U.S. Fixed Income10,446.68663,892.591.57%
International Fixed Income548.5474,332.500.74%
Commodities 814.0462,920.141.29%
Currency22.151,533.081.45%
Leveraged-202.3035,168.97-0.58%
Inverse93.2012,462.790.75%
Asset Allocation-110.509,343.00-1.18%
Alternatives18.854,572.860.41%
Total:8,583.823,814,446.260.23%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity13,734.212,148,428.780.64%
International Equity6,022.14801,791.540.75%
U.S. Fixed Income50,719.45663,892.597.64%
International Fixed Income6,202.9074,332.508.34%
Commodities -2,101.3062,920.14-3.34%
Currency-258.501,533.08-16.86%
Leveraged-1,977.7435,168.97-5.62%
Inverse2,841.4812,462.7922.80%
Asset Allocation-603.809,343.00-6.46%
Alternatives588.874,572.8612.88%
Total:75,167.703,814,446.261.97%

 

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
Volume
% of Average
DBEMXtrackers MSCI Emerging Markets Hedged Equity ETF28,118122,329435.06%
HEEMiShares Currency Hedged MSCI Emerging Markets ETF114,143475,474416.56%
XTLSPDR S&P Telecom ETF19,34984,463436.52%
IQINIQ 500 International ETF100,403289,909288.75%
SPTSSPDR Portfolio Short Term Treasury ETF579,0531,854,220320.22%
YLDPrincipal Active Income ETF2,3876,115256.22%
HAPVanEck Vectors Natural Resources ETF6,59917,771269.31%
DALIFirst Trust Dorsey Wright DALI 1 ETF13,23325,236190.71%
SHViShares Short Treasury Bond ETF1,953,7995,879,113300.91%
SPIBSPDR Portfolio Intermediate Term Corporate Bond ETF1,276,3493,679,869288.31%

 

 

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.