Massive Weekly Inflows For Russell-Indexed ETFs

Massive Weekly Inflows For Russell-Indexed ETFs

Annual reconstitution of Russell indices led to huge inflows into iShares Russell ETFs.

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

ETF flows were salvaged this week as the Russell reconstitution trade offset trade war concerns. On net, $7.5 billion flowed into U.S.-listed ETFs during the week ending Thursday, June 21, according to FactSet.

Heading into Thursday, ETFs were on track for net outflows of nearly $10 billion as traders eased up on their equity positions amid rising trade tensions between the U.S. and China. But then Thursday rolled around, and a whopping $16.5 billion flooded into ETFs—mostly funds tracking Russell indices.

That's likely no coincidence. After the market close today (Friday, June 22), Russell will reconstitute all of its U.S. Russell indices, including the popular Russell 1000 and Russell 2000 indices. Funds tracking those indices will have to buy and sell stocks based on the new index makeup.

Heavy Trading

The event typically leads to heavy trading activity in the U.S. stock market. When Russell indices rebalance, it's typically one of the highest-volume days of the year.

Ahead of the reconstitution, ETFs tracking Russell indices saw a flurry of activity—perhaps related to some investors using sophisticated trading strategies to profit from the annual event. Eight of the top 10 ETFs with the largest inflows this week were iShares Russell ETFs, including the iShares Russell 1000 Growth ETF (IWF), the iShares Russell 1000 Value ETF (IWD) and the iShares Russell 2000 Value ETF (IWN).

Inflows into those funds helped offset sizable outflows from the likes of the Vanguard High Dividend Yield ETF (VYM), the iShares MSCI Emerging Markets ETF (EEM) and the Vanguard Small-Cap ETF (VB).

On net, $11 billion flowed into U.S. equity ETFs during the week, and $480 million went into U.S. fixed-income ETFs. On the other hand, international equity ETFs had net outflows of $3.4 billion.

Year-to-date inflows for all U.S.-listed ETFs now stand at $142.5 billion.

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IWFiShares Russell 1000 Growth ETF4,130.9947,771.759.47%
SPYSPDR S&P 500 ETF Trust2,765.95268,854.081.04%
IWDiShares Russell 1000 Value ETF2,514.7439,019.616.89%
QQQInvesco QQQ Trust2,311.1169,008.393.47%
IWNiShares Russell 2000 Value ETF1,843.6812,355.6317.54%
IWPiShares Russell Mid-Cap Growth ETF1,812.5410,948.6219.84%
IWMiShares Russell 2000 ETF1,808.8950,194.183.74%
IWSiShares Russell Mid-Cap Value ETF1,361.8612,198.7512.57%
IWOiShares Russell 2000 Growth ETF1,274.2012,411.0611.44%
IWViShares Russell 3000 ETF895.609,562.8710.33%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
VYMVanguard High Dividend Yield ETF-3,109.7821,218.23-12.78%
EEMiShares MSCI Emerging Markets ETF-2,932.1032,666.67-8.24%
VBVanguard Small-Cap ETF-1,940.4724,332.88-7.39%
XLFFinancial Select Sector SPDR Fund-1,202.0731,018.30-3.73%
IJHiShares Core S&P Mid-Cap ETF-957.3648,283.15-1.94%
EFAiShares MSCI EAFE ETF-949.0073,643.08-1.27%
VBKVanguard Small-Cap Growth ETF-782.508,490.78-8.44%
XLIIndustrial Select Sector SPDR Fund-614.6812,007.54-4.87%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-600.8114,755.28-3.91%
IVViShares Core S&P 500 ETF-586.41151,503.08-0.39%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity11,040.672,064,442.750.53%
International Equity-3,378.53808,216.00-0.42%
U.S. Fixed Income476.28547,098.360.09%
International Fixed Income222.8261,912.370.36%
Commodities -200.4367,019.51-0.30%
Currency-0.781,206.39-0.06%
Leveraged-327.6936,082.03-0.91%
Inverse-185.7913,179.73-1.41%
Asset Allocation-112.249,332.86-1.20%
Alternatives-61.164,303.66-1.42%
Total:7,473.143,612,793.670.21%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
Volume
% of Average
AGTiShares MSCI Argentina and Global Exposure ETF19,76196,644489.06%
HOLDAdvisorShares Sage Core Reserves ETF7272,954406.34%
DMRMDeltaShares S&P 400 Managed Risk ETF1,9156,953363.04%
ARCMArrow Reserve Capital Management ETF93248267.32%
VXXBiPath Series B S&P 500 VIX Short Term Futures ETN5,36217,887333.58%
FSZFirst Trust Switzerland AlphaDEX Fund6,74219,432288.20%
CLTLInvesco Treasury Collateral ETF6541,662254.17%
BICKFirst Trust BICK Index Fund7,46321,742291.32%
DMRLDeltaShares S&P 500 Managed Risk ETF3,5398,386236.99%
FNXFirst Trust Mid Cap Core AlphaDEX Fund45,284141,086311.56%

 

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.