Investors Pull Nearly $16B From ETFs

Money leaves exchange-traded funds as equity rally sputters. 

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Investors pulled $15.7 billion from U.S.-listed ETFs last week as equity markets sputtered and last month’s stock rally showed no sign of reappearing. 

The drop was the second weekly outflow this month.  

Six of the top 10 redemptions were in funds targeting value stocks, despite value being a popular investing theme this year. The $24.4 billion iShares S&P 500 Value ETF (IVE) led outflows with a loss of $4.3 billion, followed by the $15 billion SPDR Portfolio S&P 500 Value ETF (SPYV) and the $12.6 billion iShares Core S&P U.S. Value ETF (IUSV), which lost $4 billion and $2.4 billion, respectively.  

Overall, U.S. equity ETFs saw $22.8 billion in outflows during the week, the most significant loss of any asset class during the period. Outflows follow last week’s drop in the Standard & Poor’s 500, which is on track for its first losing month after gains in November and October as investors prepare for a potential recession next year. 

Meanwhile, the top two ETFs for inflows suggest at least some investors are taking a risk-on approach as the year winds down. The $145.5 billion Invesco QQQ Trust (QQQ) gained $1.1 billion, while the $10.4 billion ProShares UltraPro QQQ (TQQQ), which offers three times the daily performance of the Nasdaq-100 Index, added $926.8 million.  

That said, fully half of the top 10 ETFs for inflows were fixed-income funds, with the iShares Short Treasury Bond ETF (SHV) gaining $697.1 million during the week, more than any other bond ETF. In fact, at least three of those six fixed-income ETFs were focused on short-term bonds, with the iShares 0-3 month Treasury Bond ETF (SGOV) and the Vanguard Short-Term Treasury Index ETF (VGSH) pulling in $444.9 million and $442.5 million, respectively.  

The move into ETFs with a risk-off approach could be part of a reshuffling of asset allocations in anticipation of the new year. A recent survey by Natixis indicated that 72% of institutional investors believe traditional fixed income will come back into vogue next year, with 56% of respondents taking a bullish view of the asset class. Indeed, the U.S. fixed income category had aggregate inflows of $4.1 billion, the largest gain for any asset class last week.  

Year-to-date ETF inflows for 2022 through Friday of $607.1 billion suggest the full-year total will fall short of the more than $900 billion the industry added in 2021. That nearly $300 billion gap isn’t exactly surprising given 2022 has seen a global market crash, widespread inflation and fears of recession and the resurgence of war in the Western hemisphere.  

 

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
QQQInvesco QQQ Trust1,123.74145,466.360.77%
TQQQProShares UltraPro QQQ926.8410,394.128.92%
SHViShares Short Treasury Bond ETF697.0520,274.053.44%
VWOVanguard FTSE Emerging Markets ETF671.3267,776.170.99%
AGGiShares Core U.S. Aggregate Bond ETF572.1882,875.580.69%
XOPSPDR S&P Oil & Gas Exploration & Production ETF521.074,635.7211.24%
IWFiShares Russell 1000 Growth ETF466.3359,017.470.79%
BNDVanguard Total Bond Market ETF459.5885,594.300.54%
SGOViShares 0-3 Month Treasury Bond ETF444.906,175.837.20%
VGSHVanguard Short-Term Treasury Index ETF442.5018,336.642.41%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IVEiShares S&P 500 Value ETF-4,255.1124,364.08-17.46%
SPYVSPDR Portfolio S&P 500 Value ETF-4,035.8414,973.09-26.95%
IUSViShares Core S&P U.S. Value ETF-2,368.9612,591.98-18.81%
IVViShares Core S&P 500 ETF-1,787.24288,607.27-0.62%
IJJiShares S&P Mid-Cap 400 Value ETF-1,494.177,367.95-20.28%
VOVanguard Mid-Cap ETF-1,334.5749,502.41-2.70%
RPVInvesco S&P 500 Pure Value ETF-1,146.163,492.66-32.82%
SLYVSPDR S&P 600 Small Cap Value ETF-975.983,895.70-25.05%
TLTiShares 20+ Year Treasury Bond ETF-959.0827,993.07-3.43%
VBVanguard Small-Cap ETF-914.7340,322.43-2.27%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-22,764.613,825,541.46-0.60%
International Equity1,875.901,142,406.650.16%
U.S. Fixed Income4,117.671,163,419.840.35%
International Fixed Income-48.69138,875.67-0.04%
Commodities66.15129,456.660.05%
Currency-217.493,783.74-5.75%
Leveraged1,802.7444,156.814.08%
Inverse-708.5524,083.95-2.94%
Asset Allocation-58.2416,828.25-0.35%
Alternatives257.408,898.222.89%
Total:-15,677.746,497,451.25-0.24%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity281,999.703,825,541.467.37%
International Equity98,501.281,142,406.658.62%
U.S. Fixed Income186,908.281,163,419.8416.07%
International Fixed Income7,647.31138,875.675.51%
Commodities-4,246.21129,456.66-3.28%
Currency1,492.423,783.7439.44%
Leveraged21,615.5644,156.8148.95%
Inverse9,444.8924,083.9539.22%
Asset Allocation1,029.4816,828.256.12%
Alternatives2,678.218,898.2230.10%
Total:607,070.936,497,451.259.34%

 

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
BDRYBreakwave Dry Bulk Shipping ETF10.06%1,021,82038.54
JJNiPath Series B Bloomberg Nickel Subindex Total Return ETN8.90%90,87543.22
NOPENoble Absolute Return ETF7.16%653,42937.15
EWZSiShares MSCI Brazil Small-Cap ETF6.65%284,55076.44
NIBiPath Bloomberg Cocoa Subindex Total Return ETN6.25%43,85421.66
BRFVanEck Brazil Small-Cap ETF5.58%45,60923.84
SILJETFMG Prime Junior Silver Miners ETF5.57%8,301,938712.03
FLBRFranklin FTSE Brazil ETF5.54%109,249301.37
PFIXSimplify Interest Rate Hedge ETF5.53%460,904361.18
SBIOALPS Medical Breakthroughs ETF5.45%68,906109.28

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
MLPOCredit Suisse S&P MLP Index ETN53.25%-1.79%28.39
IMLPiPath S&P MLP ETN32.28%0.00%28.39
OILKProShares K-1 Free Crude Oil Strategy ETF24.03%1.98%98.09
FUEELEMENTS Linked to the ICE BofAML Commodity Index eXtra Biofuels - Total Return ETN19.59%1.65%2.90
TADSThe Active Dividend Stock ETF17.40%0.00%2.90
NVMZTrueShares Structured Outcome ETF - November14.66% 2.90
GRUELEMENTS Linked to ICE BofAML Commodity index eXtra Grains - Total Return ETN12.58%1.52%8.39
SULRSmartETFs Sustainable Energy II ETF8.64% 8.39
RINFProShares Inflation Expectations ETF7.34%0.54%68.24
USOICredit Suisse X-Links Crude Oil Shares Covered Call ETN3.97%0.45%356.19

 

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.

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.