Marijuana ETF 'MJX' Powers Strong Weekly Inflows

ETFs continued their winning ways during the first week of 2018.

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

After registering record inflows last year, ETFs began 2018 on a strong note. According to FactSet, U.S.-listed ETFs took in $5.3 billion during the week ending Thursday, Jan. 4, a span that includes one trading session from 2017 and three trading sessions from 2018 (Monday was a holiday).

If 2018 inflows are to come anywhere close to last year's scorching $476.1 billion, investors have to keep plowing money into ETFs at a blistering pace. So far so good.

Unlike last year, U.S. equity ETFs weren't the most popular asset class among ETF investors during the first week of 2018. Only $139 million went into ETFs of that category, despite a strong opening week for the S&P 500. The venerable index rallied in each of its first four trading sessions of 2018, and was already up 2.6% year-to-date as of Friday.

It was U.S. fixed-income ETFs and international equity ETFs that took in the most money—$2.9 billion and $2.5 billion, respectively. International fixed-income ETFs also fared well, gathering $871 million during the week.

IVV On Top, But MJX Shines Bright

In terms of individual ETFs, the iShares Core S&P 500 ETF (IVV) took the top spot during the period, with inflows of $1.1 billion. It also was the biggest flows winner of last year, when it took in $30.2 billion.

Ironically, the most-talked-about ETF that took in substantial flows this week isn't even on the top 10 list for the period. The ETFMG Alternative Harvest ETF (MJX) became the first U.S.-listed marijuana ETF on the market, on Dec. 26, and immediately gained traction with investors.

In the past week, the fund had inflows of $229 million, catapulting its assets under management from $6 million to $273 million. The fund has also performed well, rising 20% since its debut, and nearly 12% in the past week.

Wild Ride For UGAZ

On the outflows side, the SPDR S&P 500 ETF Trust (SPY) took the No. 1 spot, with redemptions of $3.2 billion.

Another notable loser was the VelocityShares 3X Long Natural Gas ETN (UGAZ), with outflows of more than $300 million. The ETN had a wild ride recently, rising 56% between Dec. 21 and Jan. 2, before plunging by 23% over the next three days.

Natural gas prices haven't been able to get much traction despite record-breaking cold across much of the U.S.

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

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IVViShares Core S&P 500 ETF1,072.24144,643.410.75%
AGGiShares Core U.S. Aggregate Bond ETF861.7353,629.381.63%
XLIIndustrial Select Sector SPDR Fund817.4713,505.416.44%
JNKSPDR Bloomberg Barclays High Yield Bond ETF807.8813,340.226.45%
EMBiShares JP Morgan USD Emerging Markets Bond ETF624.4612,782.445.14%
XLEEnergy Select Sector SPDR Fund623.1119,306.343.34%
XLFFinancial Select Sector SPDR Fund523.0833,362.981.59%
MDYSPDR S&P Midcap 400 ETF Trust434.7621,105.902.10%
TIPiShares TIPS Bond ETF387.1824,338.671.62%
XLYConsumer Discretionary Select Sector SPDR Fund370.0213,452.192.83%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust-3,207.51272,675.55-1.16%
IWMiShares Russell 2000 ETF-1,684.8442,165.79-3.84%
QQQPowerShares QQQ Trust-1,082.7058,763.46-1.81%
XLPConsumer Staples Select Sector SPDR Fund-655.968,726.43-6.99%
CIUiShares Intermediate Credit Bond ETF-536.767,658.99-6.55%
LQDiShares iBoxx $ Investment Grade Corporate Bond ETF-494.7738,430.92-1.27%
XLUUtilities Select Sector SPDR Fund-322.787,065.54-4.37%
XIVVelocityShares Daily Inverse VIX Short-Term ETN-305.331,142.96-21.08%
UGAZVelocityShares 3X Long Natural Gas ETN-300.83864.05-25.82%
IJRiShares Core S&P Small Cap ETF-277.4136,269.02-0.76%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity138.891,942,812.620.01%
International Equity2,529.97814,474.490.31%
U.S. Fixed Income2,948.46525,990.260.56%
International Fixed Income871.2759,565.881.46%
Commodities-213.2367,683.16-0.32%
Currency-7.411,244.46-0.60%
Leveraged-643.5834,689.62-1.86%
Inverse-327.2214,810.43-2.21%
Asset Allocation50.968,980.490.57%
Alternatives-25.654,126.95-0.62%
Total:5,322.483,474,378.370.15%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
Volume
% of Average
QXTRQuantX Risk Managed Multi-Asset Total Return ETF5,56236,473655.79%
DBPPowerShares DB Precious Metals Fund45,411226,526498.84%
MJXETFMG Alternative Harvest ETF531,2004,151,537781.54%
PSCPrincipal U.S. Small-Cap Multi-Factor Index ETF3251,548475.50%
EXTWisdomTree U.S. Total Earnings Fund7,75636,493470.52%
CACGClearBridge All Cap Growth ETF24,92497,601391.60%
HUSEUS Market Rotation Strategy ETF16,23864,140395.01%
HYZDWisdomTree Interest Rate Hedged High Yield Bond Fund55,431165,607298.76%
LVHILegg Mason International Low Volatility High Dividend ETF5,05813,838273.57%
IDXVanEck Vectors Indonesia Index ETF25,99693,271358.79%

 

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.