Junk Bond & Emerging Market ETFs See Mega Inflows

Hundreds of millions of dollars flow into these two segments in the week ending Thursday, Oct. 22.

Reviewed by: etf.com Staff
Edited by: etf.com Staff

Hundreds of millions of dollar continued to flow into U.S. corporate bond ETFs this week, as investors speculated that interest rates would stay lower for longer. Three products in particular remain extremely popular: the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD | A-77), the iShares iBoxx $ High Yield Corporate Bond ETF (HYG | B-64) and the SPDR Barclays High Yield Bond ETF (JNK | B-68).

The three ETFs gathered a combined $2.1 billion in assets this week alone. For the month as a whole, the trio has gained a whopping $6 billion in assets. These are no small funds by any means, but even for their size, these are hefty inflows.

In addition to expectations that the Fed may not hike interest rates this year, investors are also betting that the fears about an economic slowdown and the potential for widespread corporate defaults that were prevelent in August and September were overblown.

At one point in September, junk bond yields touched their highest levels since 2011, a time when the the eurozone sovereign debt crisis was raging. Clearly, those high yields were attractive to many ETF investors.

Outside the corporate bond space, another area that had significant inflows this week was emerging markets. The iShares Core MSCI Emerging Markets ETF (IEMG | A-99) and the iShares MSCI Emerging Markets ETF (EEM | B-100) gathered a combined $1 billion in assets.

As with junk bonds, investors may believe that the worst for emerging markets is in the rearview mirror and that all the bad news is already priced in.

Altogether, U.S. ETFs had $6.8 billion in inflows in the week ending Thursday, Oct. 22, putting total assets at $2.1 trillion

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
LQDiShares iBoxx $ Investment Grade Corporate Bond898.7424,583.133.79%
HYGiShares iBoxx $ High Yield Corporate Bond730.6514,691.315.23%
MDYSPDR S&P MidCap 400599.8515,145.954.12%
IEMGiShares Core MSCI Emerging Markets517.868,512.026.48%
EEMiShares MSCI Emerging Markets513.6123,669.642.22%
EZUiShares MSCI EMU502.9213,100.563.99%
BIVVanguard Intermediate-Term Bond501.477,436.117.23%
AGGiShares Core U.S. Aggregate Bond460.6527,733.711.69%
SHYiShares 1-3 Year Treasury Bond458.9313,665.933.47%
JNKSPDR Barclays High Yield Bond445.0411,285.244.11%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500-2,200.19176,090.08-1.23%
SHViShares Short Treasury Bond-540.473,639.57-12.93%
XLIIndustrial Select SPDR-433.837,202.89-5.68%
IEIiShares 3-7 Year Treasury Bond-411.385,687.69-6.74%
DBEFDeutsche X-trackers MSCI EAFE Hedged Equity ETF-301.4813,696.92-2.15%
IEFiShares 7-10 Year Treasury Bond-248.279,666.90-2.50%
IWMiShares Russell 2000-235.7926,686.04-0.88%
GDXMarket Vectors Gold Miners-201.454,955.18-3.91%
IVViShares Core S&P 500-194.5668,466.93-0.28%
SMHMarket Vectors Semiconductor-171.85281.73-37.89%

ETF Weekly Flows By Asset Class

Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity1,492.731,145,836.800.13%
International Equity1,738.19489,504.660.36%
U.S. Fixed Income3,344.04332,036.281.01%
International Fixed Income104.9027,002.770.39%
Asset Allocation-6.245,484.00-0.11%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
% of Average
DIVCC-Tracks Miller/Howard Strategic Dividend Reinvestor ETN58,927325,250551.95%
JPGEJPMorgan Diversified Return Global Equity7,85129,527376.09%
BSJJGuggenheim BulletShares 2019 High Yield Corporate Bond72,336236,987327.62%
HYXUiShares Global ex USD High Yield Corporate Bond46,586140,634301.88%
RHSGuggenheim S&P Equal Weight Consumer Staples92,116272,915296.27%
PXEPowerShares Dynamic Energy Exploration & Production29,61286,865293.34%
TUZPIMCO 1-3 Year U.S. Treasury29,17185,558293.30%
FDMFirst Trust Dow Jones Select Micro Cap6,32418,183287.51%
IBCDiShares iBonds Mar 2020 Corporate ex-Financials 1,5924,537284.96%
LDURPIMCO Low Duration2,8858,155282.68%

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
HEWYiShares Currency Hedged MSCI South Korea8.38%1,0252.49
ROGSLattice Global Small Cap Strategy7.10%2,6117.17
SLDRALPS Sector Leaders 6.47%1,5091.22
FIWFirst Trust ISE Water5.52%154,010111.25
HFEZSPDR EURO STOXX 50 Currency Hedged5.22%43,8567.36
JDGWisdomTree Japan Quality Dividend Growth4.92%1,9242.31
DXJFWisdomTree Japan Hedged Financials4.87%37,29625.79
EMREGuggenheim Emerging Markets Real Estate4.80%2,4642.19
XLREReal Estate Select Sector SPDR4.58%8,2214.71
FKOFirst Trust South Korea AlphaDex4.37%15,5003.69

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
VXUPAccuShares Spot CBOE VIX Up Shares-52.79%113,0030.10
CVOLC-Tracks Citi Volatility ETN-12.12%864,3752.97
JOiPath Bloomberg Coffee Subindex Total Return ETN-10.46%864,272109.89
CAFEiPath Pure Beta Coffee ETN-10.34%22,0255.11
CNCRLoncar Cancer Immunotherapy-9.14%457,52010.53
XPHSPDR S&P Pharmaceuticals-8.61%1,656,214662.83
SGDJSprott Junior Gold Miners-7.77%33,32826.11
GAZiPath Bloomberg Natural Gas Subindex Total Return ETN-7.51%91,8048.28
VIXYProShares VIX Short-Term-7.39%10,756,39188.48
VXXiPath S&P 500 VIX Short-Term Futures ETN-7.34%358,784,756870.36

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
CNXTMarket Vectors ChinaAMC SME-ChiNext0.40-1.2057.84
ASHSDeutsche X-trackers Harvest CSI 500 China-A Shares Small Cap ETF0.21-1.8942.01
DXJHWisdomTree Japan Hedged Health Care0.210.8110.71
GRNiPath Global Carbon ETN0.194.952.56
DFJWisdomTree Japan SmallCap Dividend0.171.35341.21
RSXMarket Vectors Russia0.17-2.342,000.12
EIRLiShares MSCI Ireland Capped0.17-0.68165.82
FDNFirst Trust Dow Jones Internet0.17-0.033,773.21
DXJFWisdomTree Japan Hedged Financials0.163.2025.79
DXJSWisdomTree Japan Hedged SmallCap Equity0.161.97190.40

Bottom 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
CVOLC-Tracks Citi Volatility ETN-0.59-11.982.97
GAZiPath Bloomberg Natural Gas Subindex Total Return ETN-0.58-5.818.28
XTNSPDR S&P Transportation-0.561.66278.54
XHSSPDR S&P Health Care Services-0.52-7.84178.00
XSWSPDR S&P Software & Services-0.48-0.4352.39
XSDSPDR S&P Semiconductor-0.461.72140.66
EWZSiShares MSCI Brazil Small-Cap-0.440.5225.18
BRFMarket Vectors Brazil Small-Cap-0.44-0.4269.88
BRXXEGShares Brazil Infrastructure-0.42-1.809.00
VIIXVelocityShares VIX Short Term ETN-0.42-6.137.40

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.

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