Massive $34B Pours Into ETFs As Stocks Hit Record Highs

Encouraged by a soaring stock market, investors added billions of dollars to U.S.-listed ETFs this week.

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

Investors poured a massive sum of money into ETFs this week as U.S. stocks raced to record highs. More than $34.3 billion entered U.S.-listed ETFs during the week ending Thursday, Sep. 20, according to FactSet, pushing year-to-date inflows to $214.9 billion. It was the largest weekly inflow since the middle of March.

The vast majority of this week’s new money—$31.2 billion—headed straight for low-cost U.S. equity ETFs.

That’s not surprising. The U.S. stock market remains the standout performer in the world, easily outperforming most international equity markets and other asset classes. The S&P 500 topped 2,940 this week, giving it a gain of more than 11% for the year.

Investors graced ETFs offering cheap, broad exposure to U.S. equities with their money. Nearly $8.7 billion flowed into the SPDR S&P 500 ETF Trust (SPY); $3.5 billion flowed into the Technology Select Sector SPDR Fund (XLK); and $2.6 billion flowed into the Consumer Discretionary Select Sector SPDR Fund (XLY).

Tech and consumer discretionary are the two top-performing stock market sectors of the year, with gains of nearly 20% each.

Vanguard funds also fared well this week. ETFs from that issuer with large inflows included the Vanguard Small-Cap ETF (VB), the Vanguard S&P 500 ETF (VOO) and the Vanguard Mid-Cap ETF (VO).

On the other hand, a plethora of iShares ETFs dominated the weekly outflows list. The iShares Russell 2000 ETF (IWM), the iShares Russell 1000 Growth ETF (IWF) and the iShares iBoxx USD High Yield Corporate Bond ETF (HYG) each had weekly outflows of more than $650 million.

While attracting much smaller sums, ETF segments other than U.S. equities also had inflows. U.S. fixed-income ETFs had net inflows of $1.6 billion; international equity ETFs had inflows of $761 million; and international fixed-income ETFs had inflows of $364 million.

Treasury bond prices sagged this week as the U.S. 10-year yield increased from 2.99% to as much as 3.1%, nearly matching the seven-year high from May.

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
SPYSPDR S&P 500 ETF Trust8,668.27280,618.403.19%
XLKTechnology Select Sector SPDR Fund3,445.2026,496.0714.95%
XLYConsumer Discretionary Select Sector SPDR Fund2,567.1718,393.0916.22%
VBVanguard Small-Cap ETF2,478.6527,665.699.84%
VOOVanguard S&P 500 ETF2,354.20106,588.372.26%
VOVanguard Mid-Cap ETF1,221.0525,972.584.93%
VBKVanguard Small-Cap Growth ETF1,033.5010,016.2811.51%
SCHMSchwab U.S. Mid-Cap ETF660.746,132.5212.08%
VTIVanguard Total Stock Market ETF654.67106,877.750.62%
RSPInvesco S&P 500 Equal Weight ETF641.3916,711.923.99%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IWMiShares Russell 2000 ETF-737.7746,804.61-1.55%
IWFiShares Russell 1000 Growth ETF-668.1944,283.53-1.49%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-654.1115,536.65-4.04%
QQQInvesco QQQ Trust-364.4170,590.78-0.51%
EWJiShares MSCI Japan ETF-282.9916,883.04-1.65%
EFAiShares MSCI EAFE ETF-239.2870,755.38-0.34%
IJHiShares Core S&P Mid-Cap ETF-185.3050,623.45-0.36%
IEFiShares 7-10 Year Treasury Bond ETF-142.459,238.14-1.52%
TIPiShares TIPS Bond ETF-133.0123,989.66-0.55%
IWOiShares Russell 2000 Growth ETF-131.6111,026.83-1.18%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity31,239.992,194,435.811.42%
International Equity760.52792,095.480.10%
U.S. Fixed Income1,594.82570,139.230.28%
International Fixed Income363.8764,412.260.56%
Commodities 80.4459,271.130.14%
Currency0.751,084.890.07%
Leveraged-115.9737,795.48-0.31%
Inverse146.1012,740.181.15%
Asset Allocation141.579,618.481.47%
Alternatives125.514,750.352.64%
Total:34,337.593,746,343.290.92%

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity105,024.072,194,435.814.79%
International Equity35,985.29792,095.484.54%
U.S. Fixed Income59,437.27570,139.2310.43%
International Fixed Income8,872.6564,412.2613.77%
Commodities -1,711.6159,271.13-2.89%
Currency-107.281,084.89-9.89%
Leveraged3,724.8737,795.489.86%
Inverse2,280.2512,740.1817.90%
Asset Allocation799.299,618.488.31%
Alternatives625.434,750.3513.17%
Total:214,930.243,746,343.295.74%

 

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.