Largest Weekly ETF Outflows Since March

Sumit Roy

Senior ETF Analyst

Jun 29, 2018

Reviewed by: Sumit Roy

Edited by: Sumit Roy

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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)

Ticker	Name	Net Flows ($,mm)	AUM ($, mm)	AUM % Change
LQD	iShares iBoxx USD Investment Grade Corporate Bond ETF	1,220.75	32,971.40	3.84%
VMBS	Vanguard Mortgage-Backed Securities ETF	759.38	6,692.31	12.80%
GOVT	iShares U.S. Treasury Bond ETF	754.39	6,533.89	13.05%
BSV	Vanguard Short-Term Bond ETF	734.03	25,527.43	2.96%
AGG	iShares Core U.S. Aggregate Bond ETF	402.61	55,312.26	0.73%
XLP	Consumer Staples Select Sector SPDR Fund	400.37	8,494.56	4.95%
SMH	VanEck Vectors Semiconductor ETF	333.25	1,388.37	31.58%
IJH	iShares Core S&P Mid-Cap ETF	271.53	46,931.87	0.58%
VV	Vanguard Large-Cap ETF	258.29	12,680.22	2.08%
SHV	iShares Short Treasury Bond ETF	253.82	14,903.03	1.73%

Top 10 Redemptions (All ETFs)

Ticker	Name	Net Flows ($,mm)	AUM ($, mm)	AUM % Change
SPY	SPDR S&P 500 ETF Trust	-5,009.66	257,359.43	-1.91%
IWF	iShares Russell 1000 Growth ETF	-4,359.72	41,858.28	-9.43%
IWD	iShares Russell 1000 Value ETF	-2,523.40	35,912.45	-6.57%
IWP	iShares Russell Mid-Cap Growth ETF	-1,700.83	8,821.74	-16.16%
IWN	iShares Russell 2000 Value ETF	-1,573.30	10,507.75	-13.02%
IWM	iShares Russell 2000 ETF	-1,335.01	46,904.79	-2.77%
IWS	iShares Russell Mid-Cap Value ETF	-1,225.16	10,777.83	-10.21%
EEM	iShares MSCI Emerging Markets ETF	-1,045.39	30,474.33	-3.32%
IWO	iShares Russell 2000 Growth ETF	-884.81	10,911.53	-7.50%
QQQ	Invesco QQQ Trust	-829.88	65,252.00	-1.26%

ETF Weekly Flows By Asset Class

	Net Flows ($, mm)	AUM ($, mm)	% of AUM
U.S. Equity	-21,176.79	1,986,143.77	-1.07%
International Equity	-3,947.66	784,421.91	-0.50%
U.S. Fixed Income	3,766.29	552,276.73	0.68%
International Fixed Income	-13.84	61,917.84	-0.02%
Commodities	-470.75	66,135.80	-0.71%
Currency	6.24	1,210.77	0.52%
Leveraged	378.51	34,484.80	1.10%
Inverse	-69.81	13,262.07	-0.53%
Asset Allocation	-11.18	9,206.77	-0.12%
Alternatives	-48.60	4,415.38	-1.10%
Total:	-21,587.61	3,513,475.84	-0.61%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker	Name	Average Volume (30 Day)	1 Week Average Volume	% of Average
MLPO	Credit Suisse S&P MLP Index ETN	3	17	648.68%
RBIN	Nationwide Risk-Based International Equity ETF	8	25	326.58%
DBO	Invesco DB Oil Fund	1,622,877	5,099,511	314.23%
SLQD	iShares 0-5 Year Investment Grade Corporate Bond ETF	276,129	1,305,067	472.63%
VRP	Invesco Variable Rate Preferred ETF	428,965	1,380,417	321.80%
ICVT	iShares Convertible Bond ETF	94,735	518,174	546.97%
CMBS	iShares CMBS ETF	37,529	170,973	455.57%
ADRE	Invesco BLDRS Emerging Markets 50 ADR Index Fund	15,697	63,749	406.11%
IHDG	WisdomTree International Hedged Quality Dividend Growth Fund	143,201	706,458	493.33%
SPTL	SPDR Portfolio Long Term Treasury ETF	230,581	590,683	256.17%

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

| Contact: [email protected]

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.

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