New Japan ETF Still Hot, Now Over $1.5B

Positive earnings and trade developments encouraged investors to add money to U.S. equity ETFs.

Sumit Roy

Senior ETF Analyst

Jul 27, 2018

Reviewed by: Sumit Roy

Edited by: Sumit Roy

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The U.S. stock market continued to advance this week, bolstered by strong earnings numbers and an easing of trade war fears.

Facebook’s big blunder aside, most U.S. companies continued to beat profit expectations. According to FactSet, of the S&P 500 companies that have reported earnings for Q2, 83% topped analyst estimates, the largest percentage in at least a decade.

Meanwhile, the U.S. and Europe agreed to negotiate lower trade barriers after President Trump and Jean-Claude Juncker, head of the European Commission, met on Wednesday. The preliminary deal at least temporarily defused a growing trade rift between two of the world’s largest economies.

Fired up by the week’s good news, investors pushed the S&P 500 to as high as 2,848 on Wednesday, less than 1% below its record high set in January. Though it slipped back by week’s end, investors remained optimistic, adding $6.6 billion to U.S.-listed ETFs, including $6.2 billion into U.S. equity ETFs, during the week ending Thursday, July 26.

Year-to-date inflows now stand at $143.6 billion.

Millions More Pour Into ‘BBJP’

Topping the individual ETF inflows list was the SPDR S&P 500 ETF Trust (SPY), with creations of $3.6 billion.

That was followed by the Vanguard Value ETF (VTV), the Technology Select Sector SPDR Fund (XLK) and the JPMorgan BetaBuilders Japan ETF (BBJP).

Last week, after becoming the second-fastest ETF to reach $1 billion in assets, BBJP picked up $500 million in assets this week, bringing its total AUM to $1.56 billion.

On the other side of the ledger, the Invesco QQQ Trust (QQQ) took the No. 1 position on the outflows list, shedding $1.4 billion in assets. The VanEck Vectors Semiconductor ETF (SMH) was the biggest loser on a percentage basis; assets for the fund nearly halved during the week. SMH also happens to be the most-shorted of all ETFs.

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

Top 10 Creations (All ETFs)

Ticker	Name	Net Flows ($,mm)	AUM ($, mm)	AUM % Change
SPY	SPDR S&P 500 ETF Trust	3,584.23	272,874.96	1.33%
VTV	Vanguard Value ETF	609.02	42,064.50	1.47%
XLK	Technology Select Sector SPDR Fund	516.25	23,632.67	2.23%
BBJP	JPMorgan BetaBuilders Japan ETF	500.46	1,562.88	47.11%
VTI	Vanguard Total Stock Market ETF	474.08	102,626.12	0.46%
VOO	Vanguard S&P 500 ETF	455.80	95,742.77	0.48%
IEMG	iShares Core MSCI Emerging Markets ETF	413.51	48,255.98	0.86%
DIA	SPDR Dow Jones Industrial Average ETF Trust	401.17	21,773.08	1.88%
IEF	iShares 7-10 Year Treasury Bond ETF	377.42	8,774.34	4.49%
TLT	iShares 20+ Year Treasury Bond ETF	315.43	7,726.76	4.26%

Top 10 Redemptions (All ETFs)

Ticker	Name	Net Flows ($,mm)	AUM ($, mm)	AUM % Change
QQQ	Invesco QQQ Trust	-1,448.01	69,891.32	-2.03%
IVV	iShares Core S&P 500 ETF	-845.69	154,893.39	-0.54%
IWV	iShares Russell 3000 ETF	-717.49	8,985.90	-7.39%
SMH	VanEck Vectors Semiconductor ETF	-609.39	732.92	-45.40%
BIV	Vanguard Intermediate-Term Bond ETF	-331.02	13,097.10	-2.47%
HYG	iShares iBoxx USD High Yield Corporate Bond ETF	-272.91	15,535.33	-1.73%
AMLP	Alerian MLP ETF	-261.35	10,184.42	-2.50%
TDTT	FlexShares iBoxx 3 Year Target Duration TIPS Index Fund	-257.27	1,893.82	-11.96%
EWJ	iShares MSCI Japan ETF	-234.82	17,748.55	-1.31%
IVE	iShares S&P 500 Value ETF	-196.88	14,501.27	-1.34%

ETF Weekly Flows By Asset Class

	Net Flows ($, mm)	AUM ($, mm)	% of AUM
U.S. Equity	6,224.11	2,091,390.21	0.30%
International Equity	226.65	807,789.20	0.03%
U.S. Fixed Income	352.07	560,595.02	0.06%
International Fixed Income	71.40	63,261.67	0.11%
Commodities	-29.01	63,344.69	-0.05%
Currency	-26.11	1,138.65	-2.29%
Leveraged	-120.11	37,740.51	-0.32%
Inverse	-148.59	12,737.91	-1.17%
Asset Allocation	8.86	9,438.20	0.09%
Alternatives	2.46	4,419.68	0.06%
Total:	6,561.73	3,651,855.75	0.18%

Asset Classes (Year-to-Date)

	Net Flows ($, mm)	AUM ($, mm)	% of AUM
U.S. Equity	49,884.97	2,091,390.21	2.39%
International Equity	31,453.27	807,789.20	3.89%
U.S. Fixed Income	48,833.28	560,595.02	8.71%
International Fixed Income	6,713.04	63,261.67	10.61%
Commodities	896.53	63,344.69	1.42%
Currency	-55.12	1,138.65	-4.84%
Leveraged	2,735.45	37,740.51	7.25%
Inverse	2,371.56	12,737.91	18.62%
Asset Allocation	620.15	9,438.20	6.57%
Alternatives	164.97	4,419.68	3.73%
Total:	143,618.11	3,651,855.75	3.93%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker	Name	Average Volume (30 Day)	1 Week Average Volume	% of Average
DEEF	Xtrackers FTSE Developed ex U.S. Comprehensive Factor ETF	16,463	71,910	436.79%
SPYX	SPDR S&P 500 Fossil Fuel Reserves Free ETF	12,452	45,327	364.02%
ARCM	Arrow Reserve Capital Management ETF	583	1,872	321.11%
AIQ	Global X Future Analytics Tech ETF	27,897	72,377	259.44%
QLTA	iShares Aaa-A Rated Corporate Bond ETF	24,328	60,152	247.25%
IWV	iShares Russell 3000 ETF	581,946	1,239,636	213.02%
BCM	Path Pure Beta Broad Commodity ETN	1,979	4,182	211.28%
PPH	VanEck Vectors Pharmaceutical ETF	21,978	45,438	206.74%
MLN	VanEck Vectors AMT-Free Long Municipal Index ETF	39,708	78,582	197.90%
FALN	iShares Fallen Angels USD Bond ETF	34,172	62,281	182.26%

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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New Japan ETF Still Hot, Now Over $1.5B

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