Weekly Flows: US Bond Funds Rake In Assets, Growth ETFs Bleed

January 27, 2017

U.S.-listed ETFs attracted nearly $9 billion in fresh net inflows in the week ended Jan. 26—a healthy intake for a market that keeps on growing.

US Fixed Income Dominates Creations

Interesting this week is the fact that two-thirds of net creations landed in U.S. fixed-income ETFs. Everyone is talking about the end of the 30-year bond bull market, and bearish outlook for U.S. Treasurys in the face of expectations for several interest rate hikes in the next few years, but it was U.S. bond funds that raked in the most assets.

The most popular ETF in the week was the Vanguard Short-Term Bond Index Fund (BSV), with net inflows of more than $1.3 billion. The No. 2 ETF in terms of creations was the iShares Core U.S. Treasury Bond ETF (GOVT)—a fund that saw its asset base surge 33% in the past five days. In all, U.S. fixed-income ETFs attracted more than $6.7 billion in net new assets.

US Equity And Growth Stocks Bleed

On the flip side, U.S. equity ETFs were net losers in the past week, bleeding some $200 million in outflows.

The least popular segment of the ETF market was leveraged funds. As a category, these ETFs bled more than $1.7 billion in assets last week, led by outflows of $1.4 billion from the Credit Suisse FI Large Cap Growth Enhanced ETN (FLGE). FLGE offers 2X leveraged exposure to an index of U.S. large-cap growth stocks. The net redemptions seen in the past five days amounted to an AUM loss of more than 61% for the fund.

FLGE wasn’t the only growth equity ETF in the line of fire—most expect 2017 to be a good year for value stocks rather than growth. The massive Vanguard Growth Index Fund (VUG) was also among the week’s biggest redemptions, with net asset outflows of $865 million. 

In all, the ETF market in the U.S. ended the week with $2.65 trillion in assets.

The tables below show what was popular, what wasn’t, and the asset class breakdown of asset flows for the week ended Jan. 26: 

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
BSV Vanguard Short-Term Bond Index Fund 1,384.56 21,036.70 7.05%
GOVT iShares Core U.S. Treasury Bond ETF 910.64 3,617.04 33.65%
VCIT Vanguard Intermediate-Term Corporate Bond Index Fund 781.29 11,403.15 7.36%
IEFA iShares Core MSCI EAFE ETF 771.82 18,092.78 4.46%
XLK Technology Select Sector SPDR Fund 701.42 15,924.71 4.61%
MBB iShares MBS ETF 626.92 9,844.09 6.80%
DIA SPDR Dow Jones Industrial Average ETF Trust 594.45 16,572.34 3.72%
EWJ iShares MSCI Japan ETF 514.37 16,423.15 3.23%
IEMG iShares Core MSCI Emerging Markets ETF 483.70 20,568.42 2.41%
IWD iShares Russell 1000 Value ETF 453.79 35,500.28 1.29%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
QQQ PowerShares QQQ Trust -1,810.18 42,546.02 -4.08%
FLGE Credit Suisse FI Large Cap Growth Enhanced ETN -1,484.79 912.59 -61.93%
VUG Vanguard Growth Index Fund -865.39 23,276.49 -3.58%
IWM iShares Russell 2000 ETF -834.84 37,950.54 -2.15%
XLV Health Care Select Sector SPDR Fund -638.85 13,480.00 -4.52%
GLD SPDR Gold Trust -347.10 30,692.07 -1.12%
IWF iShares Russell 1000 Growth ETF -342.90 32,205.20 -1.05%
SPY SPDR S&P 500 ETF Trust -332.44 225,974.31 -0.15%
XLU Utilities Select Sector SPDR Fund -332.07 6,402.52 -4.93%
ACWX iShares MSCI ACWI ex U.S. ETF -266.20 2,076.58 -11.36%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -199.34 1,528,047.88 -0.01%
International Equity 3,726.09 543,481.90 0.69%
U.S. Fixed Income 6,732.23 420,740.39 1.60%
International Fixed Income 92.46 40,827.69 0.23%
Commodities -441.80 61,133.29 -0.72%
Currency -25.91 3,097.86 -0.84%
Leveraged -1,785.22 25,023.27 -7.13%
Inverse 140.53 17,244.03 0.81%
Asset Allocation -101.56 6,591.28 -1.54%
Alternatives 155.72 3,910.77 3.98%
Total: 8,293.20 2,650,098.36 0.31%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
LVL Guggenheim S&P Global Dividend Opportunities Index ETF 58,390 222,348 380.79%
VAW Vanguard Materials Index Fund 187,443 663,046 353.73%
EXI iShares Global Industrials ETF 22,682 67,674 298.36%
PHO PowerShares Water Resources Portfolio 49,315 109,306 221.65%
AGGY WisdomTree Barclays US Aggregate Bond Enhanced Yield Fund 21,755 47,288 217.37%
CGW Guggenheim S&P Global Water Index ETF 73,733 150,543 204.17%
PZT PowerShares New York AMT-Free Municipal Bond Portfolio 15,976 28,301 177.15%
SIVR ETFS Physical Silver Shares 175,857 285,410 162.30%
RFDI First Trust RiverFront Dynamic Developed International 30,686 41,559 135.43%
IXN iShares Global Tech ETF 65,142 85,868 131.82%

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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