Weekly Flows Show Investors Like 'GLD' & 'VWO' Despite Pullback

October 14, 2016

Despite a modest sell-off in stock and bond markets (the S&P 500 briefly hit a three-month low and the 10-year Treasury bond yield hit a four-month high), U.S.-listed ETFs had solid infows this past week. According to FactSet, $5.6 billion entered ETFs in aggregate in the week ending Thursday, Oct. 13.

Of that, $2.5 billion went into U.S. fixed-income ETFs, $1.3 billion went into international equity ETFs and $700 million went into U.S. equity ETFs.

Investors Like GLD Despite Recent Gold Sell-Off
One of the biggest flows winners this week in terms of individual products was the SPDR Gold Trust (GLD). Last week's sell-off in gold clearly didn't dissuade investors from putting more money into GLD, as the fund registered inflows of $562 million in the latest period. Gold prices were close to flat this week just above the $1,250/oz level.

Another popular fund this week was the Vanguard FTSE Emerging Markets ETF (VWO), with inflows of $541 million. Concerns about China reemerged this week following a reported 10% drop in the country's export in September, yet buyers of VWO clearly weren't worried. 

On the fixed-income side, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) had inflows of $529 million and $437 million, respectively. Bond prices largely sold off this week amid growing speculation that the Fed will hike rates in December, but fixed income continues to be an area ETF investors are plowing their money into, as evidenced by the flows into HYG and LQD.

Europe, Real Estate & Low-Vol ETFs See Outflows
On the other end of the spectrum, the iShares MSCI Eurozone ETF (EZU) was a noteworthy loser this past week, with outflows of $398 million. This year, ETF investors continue to shun the Europe-focused funds that they loved last year. 

Meanwhile, the iShares U.S. Real Estate ETF (IYR) and the PowerShares S&P 500 Low Volatility ETF (SPLV) saw outflows of $298 million and $216 million, repsectively. IYR and SPLV are a pair of ETFs that were in vogue for much of the year due to low yields; now that yields are rising, investors are starting to take money off the table when it comes to these and similar products.

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
IWM iShares Russell 2000 ETF 847.88 28,246.96 3.09%
IVV iShares Core S&P 500 ETF 790.88 79,503.27 1.00%
GLD SPDR Gold Trust 562.55 38,840.14 1.47%
VWO Vanguard FTSE Emerging Markets ETF 541.02 43,930.17 1.25%
ITOT iShares Core S&P Total U.S. Stock Market ETF 532.95 5,207.64 11.40%
HYG iShares iBoxx $ High Yield Corporate Bond ETF 528.60 18,393.50 2.96%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 437.46 32,906.31 1.35%
VOO Vanguard S&P 500 Index Fund 433.61 51,278.68 0.85%
BSV Vanguard Short-Term Bond Index Fund 377.97 19,297.01 2.00%
IEFA iShares Core MSCI EAFE ETF 337.33 13,080.41 2.65%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -1,017.46 194,027.56 -0.52%
IWB iShares Russell 1000 ETF -573.83 15,675.29 -3.53%
QQQ PowerShares QQQ Trust -420.55 38,083.91 -1.09%
EZU iShares MSCI Eurozone ETF -398.10 7,007.91 -5.38%
IYR iShares U.S. Real Estate ETF -298.40 4,097.47 -6.79%
MDY SPDR S&P Midcap 400 ETF Trust -297.40 16,625.08 -1.76%
JNK SPDR Barclays High Yield Bond ETF -273.76 12,023.89 -2.23%
FEX First Trust Large Cap Core AlphaDEX Fund -228.34 1,375.63 -14.24%
TLT iShares 20+ Year Treasury Bond ETF -227.20 6,531.93 -3.36%
SPLV Powershares S&P 500 Low Volatility Portfolio -216.09 6,624.89 -3.16%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 733.30 1,315,778.95 0.06%
International Equity 1,349.19 505,549.33 0.27%
U.S. Fixed Income 2,507.82 410,344.28 0.61%
International Fixed Income 344.40 41,287.96 0.83%
Commodities 481.69 71,033.91 0.68%
Currency 63.54 1,339.57 4.74%
Leveraged 88.54 23,675.92 0.37%
Inverse -171.17 20,376.72 -0.84%
Asset Allocation 62.32 6,412.69 0.97%
Alternatives 104.02 3,896.29 2.67%
Total: 5,563.65 2,399,695.61 0.23%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
HFXI IQ 50 Percent Hedged FTSE International ETF 32,279 149,030 461.70%
JKG iShares Morningstar Mid-Cap ETF 23,435 78,509 335.00%
PSCU PowerShares S&P SmallCap Utilities Portfolio 21,300 54,521 255.96%
VPL Vanguard FTSE Pacific ETF 444,332 1,087,326 244.71%
LVHD Legg Mason Low Volatility High Dividend ETF 33,558 85,724 255.45%
FTY iShares Real Estate 50 ETF 8,354 17,466 209.09%
IPKW PowerShares International BuyBack Achievers Portfolio 13,846 31,901 230.41%
GRES IQ Global Resources ETF 88,386 202,748 229.39%
IAT iShares U.S. Regional Banks ETF 136,635 269,844 197.49%
VTWV Vanguard Russell 2000 Value Index Fund 7,051 11,261 159.70%

 

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.

 

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