Weekly Outflows From US Equity ETFs Despite Record Highs

May 26, 2017

The now-familiar pattern of inflows into international equity ETFs and outflows out of U.S. equity ETFs continued for a fourth-straight week. The latest data from FactSet showed that investors pulled $1.3 billion from their U.S. equity ETF holdings, while adding $6.2 billion to their international equity ETF holdings in the week ending Thursday, May 25.

On net, U.S.-listed ETFs had creations of $7.8 billion during the period, pushing the year-to-date inflows figure to $188.6 billion.

During the week, the U.S. stock market rallied to a record high, with the S&P 500 reaching nearly 2,419 for the first time. As of this writing, the index was up for seven-straight sessions through Friday, recovering all of last week's decline and then some.

Despite the rally to record highs, the latest flows data suggest investors are now more enamored with international stocks than U.S. stocks. They also like fixed income even as the Federal Reserve gears up to potentially hike interest rates next month.

Bargain Buying In EWZ, Big Outflows From GDX
The big, broad equity ETFs continued to pull in most of the new assets. The PowerShares QQQ Trust (QQQ), with creations of $1.3 billion; the iShares MSCI EAFE ETF (EFA), with creations of $754 million; and the Vanguard FTSE Europe ETF (VGK), with creations of $398 million were a few of the names on the weekly top 10.

Also making the cut was the iShares MSCI Brazil Capped ETF (EWZ), which had inflows of $518 million, as bargain buyers lept into the fund after last week's plunge. 

The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), with inflows of $824 million, was the only fixed-income product to make an appearance on this week's list.

Meanwhile, on the outflows side, the VanEck Vectors Gold Miners ETF (GDX) was the biggest standout, with its $878 million worth of redemptions. Performancewise, GDX was essentially flat this week, even as gold prices climbed almost 1.5%. 

Other funds to see notable outflows this week were the PowerShares S&P 500 Low Volatility Portfolio (SPLV), with redemptions of $594 million; the iShares U.S. Real Estate ETF (IYR), with redemptions of $331 million; the United States Oil Fund (USO), with redemptions of $214 million; and the iShares 7-10 Year Treasury Bond ETF (IEF), with redemptions of $150 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
QQQ PowerShares QQQ Trust 1,276.39 51,182.28 2.56%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 824.47 33,605.45 2.52%
EFA iShares MSCI EAFE ETF 754.19 75,257.36 1.01%
VOO Vanguard S&P 500 ETF 564.38 68,184.27 0.83%
EWZ iShares MSCI Brazil Capped ETF 518.07 5,698.97 10.00%
IEFA iShares Core MSCI EAFE ETF 467.37 26,542.06 1.79%
VGK Vanguard FTSE Europe ETF 398.23 14,318.81 2.86%
IVV iShares Core S&P 500 ETF 393.49 111,772.34 0.35%
EZU iShares MSCI Eurozone ETF 349.80 12,585.50 2.86%
VTV Vanguard Value ETF 349.63 30,748.39 1.15%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
GDX VanEck Vectors Gold Miners ETF -878.41 9,041.32 -8.86%
IWM iShares Russell 2000 ETF -734.89 35,202.09 -2.04%
SPLV Powershares S&P 500 Low Volatility Portfolio -594.08 6,745.84 -8.09%
DIA SPDR Dow Jones Industrial Average ETF Trust -461.75 15,192.21 -2.95%
XLU Utilities Select Sector SPDR Fund -340.39 6,833.76 -4.74%
IYR iShares U.S. Real Estate ETF -331.47 4,212.69 -7.29%
XLK Technology Select Sector SPDR Fund -323.45 17,840.49 -1.78%
XLV Health Care Select Sector SPDR Fund -220.06 16,201.33 -1.34%
USO United States Oil Fund LP -213.95 2,955.95 -6.75%
IEF iShares 7-10 Year Treasury Bond ETF -149.59 7,560.84 -1.94%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -1,343.99 1,631,222.30 0.09%
International Equity 6,176.90 649,596.86 0.45%
U.S. Fixed Income 2,433.11 463,138.10 0.56%
International Fixed Income 596.15 49,261.43 0.82%
Commodities -210.11 63,850.00 -0.64%
Currency -39.31 1,298.50 -3.02%
Leveraged 492.61 27,794.94 0.41%
Inverse 109.97 17,147.86 0.09%
Asset Allocation 111.12 7,055.28 0.61%
Alternatives -77.10 3,739.27 -2.06%
Total: 7,807.34 2,914,109.36 0.26%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
FTGC First Trust Global Tactical Commodity Strategy Fund 81,137 432,872 533.50%
PXMV PowerShares Russell Midcap Pure Value Portfolio 15,106 45,797 303.18%
FIEU Credit Suisse FI Enhanced Europe 50 ETN 2,129 5,368 252.10%
ONEY SPDR Russell 1000 Yield Focus 447 904 202.21%
EQL Alps Equal Sector Weight ETF 7,848 18,155 231.33%
IBND SPDR Bloomberg Barclays International Corporate Bond ETF 37,659 78,892 209.49%
KCE SPDR S&P Capital Markets ETF 4,302 8,843 205.54%
FTLS First Trust Long/Short Equity ETF 15,916 26,156 164.34%
FTSM First Trust Enhanced Short Maturity ETF 247,125 452,067 182.93%
DBB PowerShares DB Base Metals Fund 304,807 544,438 178.62%

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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