Investors Pour $46B Into ETFs After Fed Decision
Equity funds attracted majority of the weekly inflows.
Investors flocked to exchange-traded funds as the Federal Reserve signaled that rates are going to stay higher for longer.
Fed officials indicated they expected interest rates to rise to 5.1% by the end of next year. They see rates at 4.1% in 2024, up from the 3.9% projected previously.
Over $46 billion poured into ETFs in the week ending Dec. 19 as investors sought to “buy the dip.” The inflow was a significant uptick from the $8 billion the industry saw the week before.
Equity exchange-traded funds tumbled on the Federal Reserve’s 50 basis point hike, as the central bank said it expected “ongoing increases” in interest rates, dampening investors’ hopes for an early end to the cycle of hikes. The S&P 500 dropped 2.1% during the week, while the Nasdaq declined 1.1%.
Equity-focused funds pulled in a total of $36.6 billion during the week, up from the $5.2 billion in the week ending Dec. 9. Funds which saw the most inflows included SPDR Portfolio S&P 500 Value ETF (SPYV), iShares S&P 500 Value ETF (IVE) and iShares Core S&P U.S. Value ETF (IUSV). The three funds collectively brought in nearly $12 billion, ETF.com data shows.
Meanwhile, U.S. fixed income funds brought in $4.4 billion rebounding from the $1.8 billion posted the week prior.
On Wednesday, the central bank underscored challenges to the global economy that may force future interest rate hikes, including persisting inflation, continuing supply and demand imbalances as well as Russia’s war in Ukraine.
Fed Chair Jerome Powell stated during a press conference that the bank’s terminal rate, the level at which the Fed is expected to stop raising interest rates, would reach 5.1%. He noted that officials aren’t yet confident the 5.1% peak estimate won’t change in the months to come.
For a full list of last week’s top inflows and outflows, see the tables below:
Top 10 Creations (All ETFs)
| Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
| SPYV | SPDR Portfolio S&P 500 Value ETF | 4,546.30 | 19,310.13 | 23.54% |
| IVE | iShares S&P 500 Value ETF | 4,478.05 | 28,939.57 | 15.47% |
| IUSV | iShares Core S&P U.S. Value ETF | 2,680.14 | 15,124.92 | 17.72% |
| SPY | SPDR S&P 500 ETF Trust | 1,893.32 | 367,970.78 | 0.51% |
| IWM | iShares Russell 2000 ETF | 1,815.16 | 53,633.59 | 3.38% |
| VTI | Vanguard Total Stock Market ETF | 1,736.76 | 265,687.06 | 0.65% |
| IJJ | iShares S&P Mid-Cap 400 Value ETF | 1,674.01 | 8,937.97 | 18.73% |
| VTV | Vanguard Value ETF | 1,516.10 | 100,289.64 | 1.51% |
| VO | Vanguard Mid-Cap ETF | 1,455.46 | 52,063.10 | 2.80% |
| BND | Vanguard Total Bond Market ETF | 1,257.67 | 86,316.35 | 1.46% |
Top 10 Redemptions (All ETFs)
| Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
| QQQ | Invesco QQQ Trust | -3,592.27 | 149,851.10 | -2.40% |
| IVV | iShares Core S&P 500 ETF | -1,617.57 | 295,845.89 | -0.55% |
| LQD | iShares iBoxx USD Investment Grade Corporate Bond ETF | -547.89 | 37,448.89 | -1.46% |
| MINT | PIMCO Enhanced Short Maturity Active ETF | -539.32 | 8,845.43 | -6.10% |
| SPLG | SPDR Portfolio S&P 500 ETF | -451.76 | 14,893.30 | -3.03% |
| VNQ | Vanguard Real Estate ETF | -339.10 | 35,111.13 | -0.97% |
| HYG | iShares iBoxx USD High Yield Corporate Bond ETF | -308.44 | 17,776.49 | -1.74% |
| USO | United States Oil Fund LP | -300.51 | 2,204.19 | -13.63% |
| PKW | Invesco BuyBack Achievers ETF | -264.10 | 1,531.07 | -17.25% |
| PDBC | Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | -261.09 | 6,689.86 | -3.90% |
ETF Weekly Flows By Asset Class
| Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
| U.S. Equity | 36,629.03 | 3,924,938.57 | 0.93% |
| International Equity | 5,764.77 | 1,151,545.49 | 0.50% |
| U.S. Fixed Income | 4,387.26 | 1,171,441.94 | 0.37% |
| International Fixed Income | 263.71 | 140,161.77 | 0.19% |
| Commodities | -1,409.29 | 129,573.25 | -1.09% |
| Currency | -98.34 | 4,049.86 | -2.43% |
| Leveraged | -133.97 | 48,120.32 | -0.28% |
| Inverse | 684.97 | 23,000.14 | 2.98% |
| Asset Allocation | 158.26 | 17,118.04 | 0.92% |
| Alternatives | 40.26 | 8,626.31 | 0.47% |
| Total: | 46,286.67 | 6,618,575.70 | 0.70% |
Asset Classes (Year-to-Date)
| Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
| U.S. Equity | 304,769.68 | 3,924,938.57 | 7.76% |
| International Equity | 96,620.64 | 1,151,545.49 | 8.39% |
| U.S. Fixed Income | 182,800.58 | 1,171,441.94 | 15.60% |
| International Fixed Income | 7,652.03 | 140,161.77 | 5.46% |
| Commodities | -4,312.36 | 129,573.25 | -3.33% |
| Currency | 1,708.39 | 4,049.86 | 42.18% |
| Leveraged | 20,307.70 | 48,120.32 | 42.20% |
| Inverse | 10,422.25 | 23,000.14 | 45.31% |
| Asset Allocation | 1,082.17 | 17,118.04 | 6.32% |
| Alternatives | 2,422.22 | 8,626.31 | 28.08% |
| Total: | 623,473.30 | 6,618,575.70 | 9.42% |
Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded
| Ticker | Name | Weekly Performance | Weekly Volume | AUM ($, mm) |
| NOPE | Noble Absolute Return ETF | 22.78% | 534,476 | 26.46 |
| BDRY | Breakwave Dry Bulk Shipping ETF | 11.67% | 1,458,040 | 39.00 |
| SATO | Invesco Alerian Galaxy Crypto Economy ETF | 7.06% | 11,337 | 2.17 |
| MSGR | Direxion mRNA ETF | 6.44% | 82,646 | 4.79 |
| BKCH | Global X Blockchain ETF | 6.12% | 649,785 | 43.78 |
| UNG | United States Natural Gas Fund LP | 5.07% | 29,890,460 | 526.06 |
| UGA | United States Gasoline Fund LP | 4.22% | 125,374 | 81.40 |
| BNO | United States Brent Oil Fund LP | 4.03% | 1,714,885 | 246.59 |
| BITS | Global X Blockchain and Bitcoin Strategy ETF | 3.67% | 35,583 | 7.25 |
| EGPT | VanEck Egypt Index ETF | 3.60% | 204,009 | 24.79 |
Top 10 YTD Performers
| Ticker | Name | YTD Performance | Weekly Performance | AUM ($, mm) |
| TUR | iShares MSCI Turkey ETF | 94.30% | -0.81% | 392.25 |
| UNL | United States 12 Month Natural Gas Fund LP | 90.69% | 2.85% | 34.94 |
| UNG | United States Natural Gas Fund LP | 67.49% | 5.07% | 526.06 |
| GAZ | iPath Series B Bloomberg Natural Gas Subindex Total Return ETN | 65.88% | 1.06% | 15.66 |
| PFIX | Simplify Interest Rate Hedge ETF | 62.38% | -8.09% | 320.51 |
| XLE | Energy Select Sector SPDR Fund | 58.67% | 0.66% | 39,593.77 |
| FENY | Fidelity MSCI Energy Index ETF | 58.35% | 0.78% | 1,596.96 |
| VDE | Vanguard Energy ETF | 58.22% | 0.79% | 8,060.22 |
| PXE | Invesco Dynamic Energy Exploration & Production ETF | 57.68% | 1.33% | 303.64 |
| OIH | VanEck Oil Services ETF | 57.23% | 2.85% | 2,425.52 |
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.
