New Record High For Flows As Real Estate Gathers Assets
Investors added $10.5 billion into U.S.-listed ETFs, sending 2016's flows total into record territory.
Flows into U.S.-listed ETFs leaped into record territory again this week, as investors remained in an optimistic mood ahead of the long Christmas weekend. Inflows into exchange-traded funds totaled $10.5 billion in the week ending Thursday, Dec. 22, according to FactSet. That puts year-to-date inflows at $277.6 billion, the most ever for a single year.
U.S. equity ETFs continued to garner the bulk of the inflows, taking in $5.8 billion during the week. Following behind were international equity ETFs, with inflows of $3.1 billion. During the week, the S&P 500 hovered just below its record highs, ultimately ending the period where it began on light trading volume.
Meanwhile, U.S. fixed-income ETFs saw inflows of their own totaling about $1.8 billion, while international fixed-income ETFs picked up $210 million. Bond prices edged slightly higher week-over-week as the dramatic sell-off in Treasurys took a pause.
Commodity ETFs were the biggest losers of the week. Outflows for the segment totaled just over $650 million.
Real Estate ETFs Gather Assets
As has been typical during the last several weeks, broad, big-name ETFs took in the most investor money this week. The SPDR S&P 500 (SPY) topped the list, with inflows of $1.3 billion. The iShares MSCI EAFE ETF (EFA) and the Vanguard FTSE Developed Markets ETF (VEA) rounded out the top three, with inflows of more than $700 million apiece.
Two real estate funds also made the top 10. The Vanguard REIT Index Fund (VNQ) and the iShares U.S. Real Estate ETF (IYR) saw creations of $569 million and $532 million, respectively. The pause in the recent spike in interest rates was a reprieve for the rate-sensitive real estate sector.
Likewise, the dip lower in interest rates was a positive for fixed-income ETFs (bond prices and rates move inversely). The iShares iBoxx $ High Yield Corporate Bond ETF (HYG), the iShares 20+ Year Treasury Bond ETF (TLT) and the PowerShares Senior Loan Portfolio (BKLN) all had inflows of just under $500 million each.
Midcap ETF The Biggest Loser
On the flip side, the Vanguard Mid-Cap Index Fund (VO) was the biggest loser of the week, with outflows of $1.2 billion. Midcaps had a great run higher since the U.S. presidential election; thus, these flows are likely a reflection of profit-taking more than anything.
The only two fixed-income ETFs on the the top ouflows list were the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and the SPDR Barclays High Yield Bond ETF (JNK), with redemptions of $927 million and $290 million, respectively.
At the same time, the SPDR Gold Trust (GLD) continued to bleed assets, losing $646 million during the week. Gold prices were little changed in the period, around the $1,135/oz level.
The ALPS Sector Dividend Dogs ETF (SDOG) and the iShares China Large-Cap ETF (FXI) were two other funds of note on the list, with outflows of $448 million and $192 million, respectively.
For a full list of this week's top inflows and outflows, see the tables below:
Top 10 Creations (All ETFs)
| Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
| SPY | SPDR S&P 500 ETF Trust | 1,346.95 | 227,632.33 | 0.60% |
| EFA | iShares MSCI EAFE ETF | 727.34 | 58,949.12 | 1.25% |
| VEA | Vanguard FTSE Developed Markets ETF | 715.85 | 39,897.20 | 1.83% |
| QQQ | PowerShares QQQ Trust | 706.87 | 42,592.18 | 1.69% |
| VNQ | Vanguard REIT Index Fund | 569.03 | 32,878.19 | 1.76% |
| IVV | iShares Core S&P 500 ETF | 535.59 | 91,685.73 | 0.59% |
| IYR | iShares U.S. Real Estate ETF | 531.67 | 4,092.30 | 14.93% |
| HYG | iShares iBoxx $ High Yield Corporate Bond ETF | 499.05 | 18,233.21 | 2.81% |
| TLT | iShares 20+ Year Treasury Bond ETF | 494.71 | 5,531.32 | 9.82% |
| BKLN | PowerShares Senior Loan Portfolio | 465.35 | 7,891.92 | 6.27% |
Top 10 Redemptions (All ETFs)
| Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
| VO | Vanguard Mid-Cap Index Fund | -1,223.60 | 16,880.12 | -6.76% |
| LQD | iShares iBoxx $ Investment Grade Corporate Bond ETF | -926.72 | 26,838.46 | -3.34% |
| GLD | SPDR Gold Trust | -645.62 | 30,045.65 | -2.10% |
| SDOG | ALPS Sector Dividend Dogs ETF | -448.31 | 1,818.26 | -19.78% |
| XLY | Consumer Discretionary Select Sector SPDR Fund | -313.90 | 10,996.88 | -2.78% |
| JNK | SPDR Barclays High Yield Bond ETF | -290.09 | 11,738.05 | -2.41% |
| VB | Vanguard Small-Cap Index Fund | -285.25 | 16,452.11 | -1.70% |
| VOT | Vanguard Mid Cap Growth Index Fund | -278.04 | 3,613.30 | -7.15% |
| FXI | iShares China Large-Cap ETF | -192.48 | 3,182.69 | -5.70% |
| VBR | Vanguard Small Cap Value Index Fund | -190.45 | 10,322.00 | -1.81% |
ETF Weekly Flows By Asset Class
| Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
| U.S. Equity | 5,800.02 | 1,489,311.39 | 0.39% |
| International Equity | 3,139.73 | 504,892.73 | 0.62% |
| U.S. Fixed Income | 1,759.94 | 404,965.88 | 0.43% |
| International Fixed Income | 207.28 | 39,563.28 | 0.52% |
| Commodities | -653.90 | 59,740.54 | -1.09% |
| Currency | 49.60 | 3,155.85 | 1.57% |
| Leveraged | 488.11 | 23,538.82 | 2.07% |
| Inverse | -409.19 | 17,946.94 | -2.28% |
| Asset Allocation | 130.00 | 6,675.63 | 1.95% |
| Alternatives | -56.37 | 3,923.79 | -1.44% |
| Total: | 10,455.23 | 2,553,714.84 | 0.41% |
Top 10 Volume Surprises, Funds >$50 mm AUM
| Ticker | Name | Average Volume (30 Day) | 1 Week Average Volume | % of Average |
| PIO | Powershares Global Water Portfolio | 23,679 | 76,528 | 323.19% |
| SHE | SPDR SSGA Gender Diversity Index ETF | 1,738 | 4,546 | 261.51% |
| ESGD | iShares MSCI EAFE ESG Select ETF | 861 | 2,113 | 245.48% |
| PGJ | PowerShares Golden Dragon China Portfolio | 30,895 | 88,895 | 287.73% |
| JPEU | JPMorgan Diversified Return Europe Equity ETF | 1,240 | 2,025 | 163.24% |
| MLPZ | ETRACS 2xMonthly Leveraged S&P MLP Index ETN Series B | 135 | 462 | 342.40% |
| CDL | Victory CEMP US Large Cap High Div Volatility Wtd Index ETF | 22,413 | 47,370 | 211.35% |
| IBMH | iShares iBonds Sep 2019 Term Muni Bond ETF | 34,593 | 73,660 | 212.93% |
| CATH | Global X S&P 500 Catholic Values | 27,755 | 38,278 | 137.92% |
| IBMG | iShares iBonds Sep 2018 Term Muni Bond ETF | 36,500 | 99,615 | 272.92% |
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.
