2016 ETF Inflows Set New Record Above $280B

December 30, 2016

A strong year for ETF inflows finished on a strong note. In the week ending Thursday, Dec. 29, investors added $6.8 billion to U.S.-listed exchange-traded funds, according to FactSet. With only one trading day not included in the count, the 2016 inflows total now stands at $282 billion. That's a record figure and well above the previous annual all-time high of $244 billion set in 2014.

As has been the case in recent weeks, U.S. equity ETFs continued to take in the bulk of inflows. This week, $3.6 billion came into the segment, followed by $1.9 billion into international equity ETFs and $1.8 billion into U.S. fixed-income ETFs. 

International fixed-income ETFs saw a much more modest $28 million of inflows, while commodity ETFs had outflows of $186 million.

In terms of performance, U.S. stocks sold off this week as investors locked in profits from the strong run since the elections. As of this writing, the S&P 500 was up 12% year-to-date, slightly down from its highest level of 13.6%.

Meanwhile, Treasurys rallied in the week, pushing the 10-year bond yield down to 2.44%, compared with this year's high of 2.6% (bond prices and yields move inversely). The 10-year started the year at 2.27%.

HEDJ Regains Some Lost Assets
The ETF taking in the most flows this week was the iShares Russell 2000 ETF (IWM). Its $951 million of flows put it ahead of the No. 2 on the list, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), which took in $628 million of its own.

A few sector ETFs also made the weekly top 10. The Financial Select Sector SPDR Fund (XLF) and the Technology Select Sector SPDR Fund (XLK) had inflows of $481 million and $355 million, respectively.

Also of note was the WisdomTree Europe Hedged Equity Fund (HEDJ). Though it saw the largest outflows of any ETF this year, at $7.8 billion, in the final week of 2016, some investors were bullish on the fund; it took in $261 million. 

SPY Sees Outflows, Still Takes In $22 Billion This Year
In contrast, the ETF that had the largest inflows of the year, at $22.2 billion, saw some outflows in the final week. Investors took out $719 million from the SPDR S&P 500 ETF (SPY) in the week ending Dec. 29.

The Vanguard REIT Index Fund (VNQ) took the No. 2 spot on the weekly outflows list, with $363 million in redemptions. A number of other ETFs representing interest-rate-sensitive areas of the market also fell out of favor this week. The iShares 20+ Year Treasury Bond ETF (TLT) had outflows of $285 million; the Utilities Select Sector SPDR Fund (XLU) had outflows of $150 million; and the Vanguard Dividend Appreciation Index Fund (VIG) had outflows of $148 million.

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 951.19 38,393.81 2.54%
HYG iShares iBoxx $ High Yield Corporate Bond ETF 627.98 18,875.22 3.44%
VEA Vanguard FTSE Developed Markets ETF 509.23 39,916.32 1.29%
XLF Financial Select Sector SPDR Fund 481.29 22,708.59 2.17%
XLK Technology Select Sector SPDR Fund 354.77 14,314.33 2.54%
EFA iShares MSCI EAFE ETF 345.44 59,145.68 0.59%
IEFA iShares Core MSCI EAFE ETF 277.22 15,524.10 1.82%
HEDJ WisdomTree Europe Hedged Equity Fund 260.84 9,221.40 2.91%
JNK SPDR Barclays High Yield Bond ETF 236.91 11,965.72 2.02%
IVV iShares Core S&P 500 ETF 215.22 91,319.48 0.24%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -719.16 225,466.93 -0.32%
VNQ Vanguard REIT Index Fund -363.41 31,746.74 -1.13%
TLT iShares 20+ Year Treasury Bond ETF -284.51 5,270.97 -5.12%
FXI iShares China Large-Cap ETF -247.07 2,864.28 -7.94%
EFAV iShares MSCI EAFE Minimum Volatility ETF -188.79 5,858.58 -3.12%
XLU Utilities Select Sector SPDR Fund -150.06 6,696.04 -2.19%
VIG Vanguard Dividend Appreciation Index Fund -148.11 22,412.61 -0.66%
USO United States Oil Fund LP -140.40 3,156.97 -4.26%
IWO iShares Russell 2000 Growth ETF -139.53 7,102.21 -1.93%
EEM iShares MSCI Emerging Markets ETF -138.96 25,700.43 -0.54%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 3,584.90 1,484,229.99 0.24%
International Equity 1,909.07 504,522.90 0.38%
U.S. Fixed Income 1,754.73 407,930.85 0.43%
International Fixed Income 27.79 39,798.87 0.07%
Commodities -186.04 59,698.95 -0.31%
Currency 19.88 3,204.15 0.62%
Leveraged -126.79 23,972.18 -0.53%
Inverse -175.83 17,426.37 -1.01%
Asset Allocation 66.27 6,765.55 0.98%
Alternatives -50.54 3,902.13 -1.30%
Total: 6,823.45 2,551,451.94 0.27%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
PHDG Powershares S&P 500 Downside Hedged Portfolio 25,208 146,123 579.67%
PVI PowerShares VRDO Tax-Free Weekly Portfolio 27,320 124,789 456.77%
BWZ SPDR Barclays Short Term International Treasury Bond ETF 55,443 196,044 353.60%
WBIH WBI Tactical High Income Shares 57,812 266,571 461.10%
WBII WBI Tactical Income Shares 106,324 466,561 438.81%
DVYE iShares Emerging Markets Dividend ETF 63,276 151,152 238.88%
XRLV PowerShares S&P 500 ex-Rate Sensitive Low Volatility Portfolio 40,556 90,000 221.92%
ISHG iShares 1-3 Year International Treasury Bond ETF 4,928 9,686 196.57%
PWC PowerShares Dynamic Market Portfolio 3,617 10,444 288.74%
HTUS Hull Tactical US ETF 30,059 56,255 187.15%

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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