Nearly $6B Flows Into ETFs Despite Interest Rate Head Winds

Investors favored U.S. equity ETFs in the latest week, while shunning gold and certain fixed-income products.
Reviewed by: Staff
Edited by: Staff

A sell-off in bonds and stagnant stock prices didn't dissuade investors from pouring money into U.S.-listed ETFs. According to FactSet, $5.9 billion in total entered ETFs in the week ending Thursday, Oct. 27, with $4.5 billion of that going into U.S. equity ETFs.

The latest flows bolster what has already been a great month for inflows into U.S.-listed ETFs. Early estimates have total inflows for the month of October at nearly $20 billion.

Though U.S. equities were the most popular, other asset classes also saw inflows in the latest week. International equity ETFs had inflows of $1.3 billion; U.S. fixed-income ETFs had inflows of $200 million; and international fixed-income ETFs had inflows of $350 million. 

On the other hand, commodity ETFs saw outflows in excess of $950 million, largely due to one fund.

VXX, TIP & PFF Garner Inflows

Most of this week's inflows went into large-cap funds such as the PowerShares QQQ Trust (QQQ) and the SPDR S&P 500 ETF (SPY), with inflows of more than $1.7 billion each.

More interestingly, the iPath S&P 500 VIX Short-Term Futures ETN (VXX) garnered inflows just shy of $500 million, equal to 37% of its assets under management. Stock market volatility has been subdued recently as investors gear up for the U.S. presidential election and a potential Fed rate hike later this year.

Meanwhile, the iShares TIPS Bond ETF (TIP) and the iShares Preferred Stock ETF (PFF) were two fixed-income winners in a week in which interest rates jumped notably. TIP had inflows of more than $300 million, while PFF had inflows of more than $260 million.  

Week-over-week, the benchmark U.S. 10-year Treasury yield increased from 1.73% to 1.85%, the highest level since May.

GLD, LQD & HYG Lead Outflows

On the outflows side, the most noteworthy loser was the SPDR Gold Trust (GLD), with redemptions totaling more than $1.1 billion. Presumably, the spike in interest rates this week reduced the appeal of zero-yielding gold, which is seen by many as an alternative safe-haven to government bonds.

The interest rate rise also prompted investors to cash in on a number of fixed-income ETFs. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) had outflows of $608 million and $426 million, respectively.

Three Treasury ETFs also made the top weekly outflows list, including the iShares 1-3 Year Treasury Bond ETF (SHY), the iShares 3-7 Year Treasury Bond ETF (IEI) and the iShares 20+ Year Treasury Bond ETF (TLT), each with redemptions of more than $200 million.

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
QQQPowerShares QQQ Trust1,754.9440,695.884.51%
SPYSPDR S&P 500 ETF Trust1,709.87196,366.560.88%
IVViShares Core S&P 500 ETF538.3080,258.300.68%
VEAVanguard FTSE Developed Markets ETF495.9937,321.861.35%
VXXiPath S&P 500 VIX Short-Term Futures ETN492.891,818.5237.18%
TIPiShares TIPS Bond ETF313.1219,586.571.62%
IEFAiShares Core MSCI EAFE ETF269.9513,702.512.01%
PFFiShares U.S. Preferred Stock ETF261.7618,100.701.47%
XLUUtilities Select Sector SPDR Fund259.857,489.883.59%
DIASPDR Dow Jones Industrial Average ETF Trust255.4411,839.272.21%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IWMiShares Russell 2000 ETF-1,222.0127,426.17-4.27%
GLDSPDR Gold Trust-1,127.4438,491.58-2.85%
LQDiShares iBoxx $ Investment Grade Corporate Bond ETF-607.9132,400.30-1.84%
XLPConsumer Staples Select Sector SPDR Fund-540.088,146.23-6.22%
HYGiShares iBoxx $ High Yield Corporate Bond ETF-426.4318,064.80-2.31%
SHYiShares 1-3 Year Treasury Bond ETF-254.6710,667.95-2.33%
IEIiShares 3-7 Year Treasury Bond ETF-251.726,169.69-3.92%
XLVHealth Care Select Sector SPDR Fund-246.7811,629.32-2.08%
IWDiShares Russell 1000 Value ETF-244.9030,995.27-0.78%
TLTiShares 20+ Year Treasury Bond ETF-239.036,347.77-3.63%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity4,467.021,313,324.320.34%
International Equity1,270.70508,924.680.25%
U.S. Fixed Income205.49414,195.680.05%
International Fixed Income348.8142,003.390.83%
Asset Allocation15.356,449.860.24%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
% of Average
FLQE 1,1873,130263.76%
FTHIFirst Trust High Income ETF3,38810,191300.76%
SCHOSchwab Short-Term US Treasury ETF179,084548,826306.46%
MNAIQ Merger Arbitrage ETF24,58152,704214.41%
RTMGuggenheim S&P 500 Equal Weight Materials ETF22,03738,477174.60%
SMBVanEck Vectors AMT-Free Short Municipal Index ETF81,485154,377189.45%
DXJSWisdomTree Japan Hedged SmallCap Equity Fund18,17038,723213.12%
IXCiShares Global Energy ETF315,375528,810167.68%
VLUEiShares MSCI USA Value Factor ETF219,933580,104263.76%
IHIiShares U.S. Medical Devices ETF132,812219,902165.57%

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. is the single source for ETF intelligence. We provide real-time ETF news and analysis to educate investors and drive financial knowledge in the space. Our personalized and accurate information, alongside industry-leading financial tools, are depended upon to develop winning investment and financial decisions. At, we strive to serve both the individual investor as well as the professional financial advisor to educate and grow the ETF community.