'QQQ' Fuels Positive Weekly Flows Despite Heavy Selling In 'SPY'

January 13, 2017

The pace of inflows into U.S.-listed ETFs slowed last week, but remained in positive territory. Altogether, investors added $5 billion into ETFs during the week ending Thursday, Jan. 12, according to FactSet. 

For a change, U.S. equity ETFs registered a net outflow, losing almost $300 million during the week. The S&P 500 challenged its record high near 2,280 multiple times during the week, but was unable to decisively break out. 

Picking up the slack were international equity ETFs, which took in $4.5 billion during the period and broadly rallied thanks to a pullback in the U.S. dollar. The British FTSE 100 hit record highs, rallying for 14-straight days, the longest winning streak ever.

Meanwhile, U.S. fixed-income ETFs had inflows of $737 million; international fixed-income ETFs had inflows of $178 million; and commodity ETFs had outflows of $398 million.

The U.S. 10-year bond yield was slightly lower week-over-week at 2.4%.

QQQ Tops Inflows List As Nasdaq Hits Record High
The tech-heavy PowerShares QQQ Trust (QQQ) took the No. 1 spot on the weekly inflows list, with creations of $1.2 billion. The ETF's underlying index, the Nasdaq-100, hit an all-time high during the week.

Two emerging market ETFs also made the top 10, the iShares Core MSCI Emerging Markets ETF (IEMG) and the Vanguard FTSE Emerging Markets ETF (VWO), with inflows of $839 million and $376 million, respectively.

Two EAFE funds were also on the list: the iShares MSCI EAFE ETF (EFA) and its cheaper counterpart, the iShares Core MSCI EAFE ETF (IEFA), with creations of $531 million and $428 million, respectively.

Rounding out the top 10 were a pair of sector ETFs, the Consumer Discretionary Select Sector SPDR Fund (XLY), with inflows of $494 million; and the Industrial Select Sector SPDR Fund (XLI), with inflows of $352 million.

SPY & Factor ETFs See Outflows
On the outflows side, the SPDR S&P 500 ETF (SPY) saw a whopping $6.1 billion come out of the fund. Profit-taking is the most likely explanation for the big outflows from the world's largest ETF. 

A number of other broad U.S. equity ETFs also saw outflows during the period, including the factor-targeting iShares Russell 1000 Growth ETF (IWF) and the iShares Russell 1000 Value ETF (IWD). IWF had redemptions of $854 million, while IWD had redemptions of $311 million during the period.

The only two fixed-income ETFs on the outflows list were the SPDR Barclays High Yield Bond ETF (JNK) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), with outflows of more than $400 million each. 

The SPDR Gold Trust (GLD) was the only commodity fund on the list; it had redemptions of $325 million, despite the fact that gold prices hit their highest levels since November during the week, around $1,200/oz.

Finally, after doubling its assets last week, the SPDR S&P Retail ETF (XRT) saw outflows of more than $330 million this week, representing 39% of its AUM. The ETF routinely sees big inflows and outflows as traders hop in and out of the fund.  

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
QQQ PowerShares QQQ Trust 1,164.34 43,514.48 2.75%
IEMG iShares Core MSCI Emerging Markets ETF 838.73 19,342.18 4.53%
IJR iShares Core S&P Small Cap ETF 794.98 27,427.53 2.98%
IJH iShares Core S&P Mid-Cap ETF 788.01 36,207.28 2.22%
VOO Vanguard S&P 500 Index Fund 742.78 59,092.01 1.27%
EFA iShares MSCI EAFE ETF 531.34 60,874.84 0.88%
XLY Consumer Discretionary Select Sector SPDR Fund 494.18 11,678.79 4.42%
IEFA iShares Core MSCI EAFE ETF 427.56 16,486.93 2.66%
VWO Vanguard FTSE Emerging Markets ETF 376.14 45,877.59 0.83%
XLI Industrial Select Sector SPDR Fund 351.84 10,820.22 3.36%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -6,069.61 224,404.34 -2.63%
IWF iShares Russell 1000 Growth ETF -853.62 32,277.62 -2.58%
JNK SPDR Barclays High Yield Bond ETF -403.83 12,157.46 -3.21%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF -400.87 26,838.19 -1.47%
IWM iShares Russell 2000 ETF -364.76 39,111.15 -0.92%
IVV iShares Core S&P 500 ETF -353.86 92,020.67 -0.38%
MDY SPDR S&P Midcap 400 ETF Trust -350.82 19,382.10 -1.78%
XRT SPDR S&P Retail ETF -334.31 527.18 -38.81%
GLD SPDR Gold Trust -324.92 30,498.78 -1.05%
IWD iShares Russell 1000 Value ETF -310.96 34,867.63 -0.88%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -298.07 1,509,853.09 -0.02%
International Equity 4,487.16 522,335.62 0.86%
U.S. Fixed Income 736.90 415,473.26 0.18%
International Fixed Income 177.86 40,795.61 0.44%
Commodities -397.86 60,616.81 -0.66%
Currency 32.52 3,143.38 1.03%
Leveraged -53.23 24,785.48 -0.21%
Inverse 346.80 16,405.35 2.11%
Asset Allocation -98.37 6,757.61 -1.46%
Alternatives 57.14 3,801.82 1.50%
Total: 4,990.85 2,603,968.02 0.19%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
PPH VanEck Vectors Pharmaceutical ETF 185,298 799,986 431.73%
REET iShares Global REIT ETF 179,926 746,074 414.66%
PDBC PowerShares DB Optimum Yield Diversified Commodity Strategy Portfolio 303,440 893,853 294.57%
ITR SPDR Barclays Intermediate Term Corporate Bond ETF 415,470 1,218,389 293.26%
NORW Global X MSCI Norway ETF 93,658 242,266 258.67%
IBMJ iShares iBonds Dec 2021 Term Muni Bond ETF 46,560 108,876 233.84%
FIEE UBS AG FI Enhanced Europe 50 ETN 4,854 10,233 210.82%
LIT Global X Lithium ETF 82,299 222,138 269.92%
IBMH iShares iBonds Sep 2019 Term Muni Bond ETF 56,383 118,358 209.92%
IBMI iShares iBonds Sep 2020 Term Muni Bond ETF 55,284 124,996 226.10%

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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