Largest Weekly ETF Outflows Since March

Reversal of the Russell reconstitution trade and trade war jitters led to hefty outflows from U.S.-listed ETFs.

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

A reversal of the “Russell reconstitution trade” led to steep outflows from ETFs this week. According to FactSet, U.S.-listed ETFs registered net outflows of $21.6 billion during the week ending Thursday, June 28.

It was the largest weekly outflow since a $24.1 billion outflow in late-March, and pushed year-to-date ETF inflows down to $129.4 billion.

In a mirror image of last week, a host of iShares Russell ETFs had large outflows―potentially a reflection of investors closing out sophisticated trades linked to the annual Russell reconstitution. Seven of the 10 ETFs with the biggest outflows this week track Russell indices.

But it wasn't just the Russell trade. Even without that, U.S.-listed ETFs were on pace for outflows this week as increasing trade tensions left investors feeling jittery. The S&P 500 briefly fell below 2,700 for the first time in a month this week, and the U.S. 10-year Treasury yield hit a one-month low of 2.83%.

Indeed, the buying in bonds (bond prices and yields move inversely) was one of the few bright spots in this week's flows report. U.S. fixed-income ETFs had net inflows of $3.8 billion during the period, and the five ETFs with the largest inflows were all fixed-income funds.

Those included the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), the Vanguard Mortgage-Backed Securities ETF (VMBS), the iShares U.S. Treasury Bond ETF (GOVT), the Vanguard Short-Term Bond ETF (BSV) and the iShares Core U.S. Aggregate Bond ETF (AGG).

For a full list of this week's top inflows and outflows, see the table below:

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF1,220.7532,971.403.84%
VMBSVanguard Mortgage-Backed Securities ETF759.386,692.3112.80%
GOVTiShares U.S. Treasury Bond ETF754.396,533.8913.05%
BSVVanguard Short-Term Bond ETF734.0325,527.432.96%
AGGiShares Core U.S. Aggregate Bond ETF402.6155,312.260.73%
XLPConsumer Staples Select Sector SPDR Fund400.378,494.564.95%
SMHVanEck Vectors Semiconductor ETF333.251,388.3731.58%
IJHiShares Core S&P Mid-Cap ETF271.5346,931.870.58%
VVVanguard Large-Cap ETF258.2912,680.222.08%
SHViShares Short Treasury Bond ETF253.8214,903.031.73%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust-5,009.66257,359.43-1.91%
IWFiShares Russell 1000 Growth ETF-4,359.7241,858.28-9.43%
IWDiShares Russell 1000 Value ETF-2,523.4035,912.45-6.57%
IWPiShares Russell Mid-Cap Growth ETF-1,700.838,821.74-16.16%
IWNiShares Russell 2000 Value ETF-1,573.3010,507.75-13.02%
IWMiShares Russell 2000 ETF-1,335.0146,904.79-2.77%
IWSiShares Russell Mid-Cap Value ETF-1,225.1610,777.83-10.21%
EEMiShares MSCI Emerging Markets ETF-1,045.3930,474.33-3.32%
IWOiShares Russell 2000 Growth ETF-884.8110,911.53-7.50%
QQQInvesco QQQ Trust-829.8865,252.00-1.26%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-21,176.791,986,143.77-1.07%
International Equity-3,947.66784,421.91-0.50%
U.S. Fixed Income3,766.29552,276.730.68%
International Fixed Income-13.8461,917.84-0.02%
Commodities -470.7566,135.80-0.71%
Currency6.241,210.770.52%
Leveraged378.5134,484.801.10%
Inverse-69.8113,262.07-0.53%
Asset Allocation-11.189,206.77-0.12%
Alternatives-48.604,415.38-1.10%
Total:-21,587.613,513,475.84-0.61%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
Volume
% of Average
MLPOCredit Suisse S&P MLP Index ETN317648.68%
RBINNationwide Risk-Based International Equity ETF825326.58%
DBOInvesco DB Oil Fund1,622,8775,099,511314.23%
SLQDiShares 0-5 Year Investment Grade Corporate Bond ETF276,1291,305,067472.63%
VRPInvesco Variable Rate Preferred ETF428,9651,380,417321.80%
ICVTiShares Convertible Bond ETF94,735518,174546.97%
CMBSiShares CMBS ETF37,529170,973455.57%
ADREInvesco BLDRS Emerging Markets 50 ADR Index Fund15,69763,749406.11%
IHDGWisdomTree International Hedged Quality Dividend Growth Fund143,201706,458493.33%
SPTLSPDR Portfolio Long Term Treasury ETF230,581590,683256.17%

 

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.