Investors Pour $24 Billion Into ETFs Amid Trump Victory

Investors were waiting to put money to work in ETFs and the end of the election gave them the green light to do so.

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

Investors stampeded into U.S.-listed ETFs this week, elated that the long-awaited U.S. presidential election finally came to an end. In the week ending Thursday, Nov. 10, total inflows into U.S.-listed ETFs was an eye-popping $23.9 billion, according to FactSet. That pushed year-to-date inflows to $197 billion.

The bulk of this week's inflows took place on Tuesday (when it looked like Hillary Clinton would win), and Wednesday and Thursday (after Donald Trump won), suggesting that investors were gaga for ETFs regardless of the election results. 

In terms of asset classes, U.S. equity ETFs were the biggest winners by far, garnering $20.1 billion worth of inflows. The S&P 500 rallied about 1% following the election, while the Dow Jones industrial average hit a record high.

Meanwhile, U.S. fixed-income ETFs had inflows of $4.4 billion, even as Treasurys were crushed in the two days after the election. The 10-year Treasury yield reached as high as 2.15%, its steepest level since January (bond prices and yields generally move inversely).

International equity and international fixed-income ETFs saw much more modest inflows—$138 million and $305 million, respectivelywhile commodity ETFs had outflows of $432 million.

Industrials & Health Care ETFs In Favor
Taking a look at individual funds, the SPDR S&P 500 ETF (SPY) was the biggest winner, with creations totaling $10.5 billion.

A number of sector ETFs saw significant interest as well, on speculation that a Trump administration would lead to reduced regulations. The Financial Select Sector SPDR Fund (XLF), which also benefited from a steeper yield curve, had inflows of $2.6 billion; the Health Care Select Sector SPDR Fund (XLV) had inflows of $1.7 billion; the Industrials Select Sector SPDR Fund (XLI) had inflows of $829 million; and the iShares Nasdaq Biotechnology ETF (IBB) had inflows of $769 million.

Meanwhile, a pair of junk bond ETFs made the top inflows list despite the surge in interest rates. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the SPDR Barclays High Yield Bond ETF (JNK) had inflows of $1.5 billion and $800 million, respectively.

Tech, EM, Utilities & Gold Out Of Favor
On the flip side, the biggest individual ETF loser of the week was the tech-heavy PowerShares QQQ Trust (QQQ), with redemptions of $1.8 billion. Some analysts suggested that Trump's policies could be detrimental to tech companies. 

Following suit was the iShares MSCI Emerging Markets ETF (EEM), with outflows topping more than $1 billion. Trump has promised to take a hard line on the United States' trade deals, which may affect emerging markets. 

Another flows loser this week was the Utilities Select Sector SPDR Fund (XLU), with outflows of $383 million; the spike in interest rates this week hurt the high-yielding utilities sector, which fell by 6% in the days after the election.

Meanwhile, the interest rate move also had a negative effect on the SPDR Gold Trust (GLD), which had outflows of $330 million in the period. Gold prices plunged to as low as $1,219 on Friday, their lowest level since June. 

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
SPYSPDR S&P 500 ETF Trust10,541.13207,187.295.36%
XLFFinancial Select Sector SPDR Fund2,566.3216,054.5119.03%
IWMiShares Russell 2000 ETF2,155.8230,003.997.74%
XLVHealth Care Select Sector SPDR Fund1,663.9313,373.7714.21%
HYGiShares iBoxx $ High Yield Corporate Bond ETF1,460.3916,747.489.55%
IVViShares Core S&P 500 ETF973.6382,825.451.19%
XLIIndustrial Select Sector SPDR Fund828.538,112.4311.37%
JNKSPDR Barclays High Yield Bond ETF793.1611,683.447.28%
IBBiShares NASDAQ Biotechnology ETF769.158,527.099.91%
XLYConsumer Discretionary Select Sector SPDR Fund692.349,834.317.57%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
QQQPowerShares QQQ Trust-1,814.7039,135.50-4.43%
EEMiShares MSCI Emerging Markets ETF-1,016.2829,450.62-3.34%
SHProShares Short S&P500-427.142,492.73-14.63%
XLUUtilities Select Sector SPDR Fund-382.696,760.99-5.36%
FXDFirst Trust Consumer Discretionary AlphaDEX Fund-367.401,297.30-22.07%
HEFAiShares Currency Hedged MSCI EAFE ETF-361.952,825.19-11.36%
GLDSPDR Gold Trust-329.7238,791.83-0.84%
SCPBSPDR Barclays Short Term Corporate Bond ETF-321.733,593.94-8.22%
VIGVanguard Dividend Appreciation Index Fund-309.0721,846.71-1.40%
IWBiShares Russell 1000 ETF-303.5015,421.00-1.93%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity20,121.741,301,503.841.55%
International Equity137.94492,471.420.03%
U.S. Fixed Income4,414.58370,464.991.19%
International Fixed Income304.8638,544.350.79%
Commodities-431.8672,505.14-0.60%
Currency-24.423,221.72-0.76%
Leveraged145.8523,828.910.61%
Inverse-808.6419,175.75-4.22%
Asset Allocation7.346,305.180.12%
Alternatives3.774,313.890.09%
Total:23,871.152,332,335.201.02%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
Volume
% of Average
HUSV 85,204562,999660.76%
QTECFirst Trust NASDAQ-100 Technology Sector Index Fund245,8391,235,729502.66%
PRNPowerShares DWA Industrials Momentum Portfolio75,999561,027738.20%
PKBPowerShares Dynamic Building & Construction Portfolio60,924260,385427.39%
FXDFirst Trust Consumer Discretionary AlphaDEX Fund623,2622,567,925412.01%
PPHVanEck Vectors Pharmaceutical ETF118,824492,067414.11%
DLNWisdomTree LargeCap Dividend Fund95,894356,253371.51%
BBRCEGShares Beyond BRICs ETF41,734157,233376.75%
PTFPowerShares DWA Technology Momentum Portfolio23,28997,774419.83%
IHEiShares U.S. Pharmaceuticals ETF35,231116,495330.66%

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.