'SPY' Eclipses $250B

October 20, 2017

Growing euphoria in the stock market pushed the S&P 500 to multiple record highs this week. Likewise, inflows into U.S.-listed exchange-traded funds continued to reach heights never before seen.

According to the latest FactSet data, $15.2 billion entered ETFs during the week ending Thursday, Oct. 19. The bulk of that―$9.5 billion―went into U.S. equity ETFs, including $4.1 billion into one fund alone: the SPDR S&P 500 ETF Trust (SPY)

SPY easily took the top spot on this week's top inflows list. Its latest inflows, along with the market's ascent, pushed SPY's total assets under management to $250 billion. That's the highest asset total ever for the world's largest ETF.

But even as assets for the fund reach new milestones, SPY curiously still has net outflows for the year as a whole, totaling $6.7 billion. Intense competition from lower-cost rivals such as the iShares Core S&P 500 ETF (IVV) have taken a toll on the behemoth.

Net ETF inflows for all ETFs in 2017 now stands at $369 billion, a new annual record.

Tax Reform Hopes Fuel Stocks

Speaking of records, the stock market continued to make new ones on a near-daily basis this week. The S&P 500 leapt as high as 2,574, equaling a return of nearly 17% for the year.

Hopes that a sweeping tax reform bill could be passed in the near future grew after the Republican-led Congress successfully passed a $4 trillion budget blueprint.  

"This action keeps us on track to enacting historic tax reform that will mean more jobs, fairer taxes and bigger paychecks for American families," House speaker Paul Ryan said of the bill.

Analysts estimate that tax cuts for corporations could mean a boost in profits of 7-12% next year, which is a big reason stocks have been climbing steadily higher recently.

Meanwhile, in fixed-income markets, the benchmark 10-year Treasury bond yield jumped from 2.28% to 2.38% week-over-week. The Federal Reserve is widely expected to hike interest rates at its December meeting.

In other Fed news, sources indicated that President Trump was leaning toward nominating Fed Governor Jerome Powell as the next chair of the central bank to replace Janet Yellen in February. If he gets the nod, Powell may continue Yellen's policies of gradual rate hikes, while avoiding upsetting markets.

SPY At The Top

Taking a look at flows for individual products, SPY easily took the top spot.  on this week's list, with inflows of $4.1 billion. A distant Nos. 2 and 3 on the weekly inflows list were the iShares Core U.S. Aggregate Bond ETF (AGG) and the iShares Core MSCI Emerging Markets ETF (IEMG), with creations of around $600 million each.

On the outflows side, the iShares 3-7 Year Treasury Bond ETF (IEI), the iShares NASDAQ Biotechnology ETF (IBB) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) were a few notable names to fall out of favor during the week.

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
SPY SPDR S&P 500 ETF Trust 4,150.64 250,605.70 1.68%
AGG iShares Core U.S. Aggregate Bond ETF 613.69 51,060.61 1.22%
IEMG iShares Core MSCI Emerging Markets ETF 572.12 40,426.88 1.44%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 460.72 38,811.06 1.20%
IEFA iShares Core MSCI EAFE ETF 453.87 38,956.68 1.18%
EEM iShares MSCI Emerging Markets ETF 418.35 37,876.24 1.12%
XLF Financial Select Sector SPDR Fund 371.51 28,333.35 1.33%
XLI Industrial Select Sector SPDR Fund 357.07 13,190.03 2.78%
VOO Vanguard S&P 500 ETF 341.28 76,064.87 0.45%
IVV iShares Core S&P 500 ETF 333.70 130,783.96 0.26%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
QQQ PowerShares QQQ Trust -334.28 53,432.99 -0.62%
IEI iShares 3-7 Year Treasury Bond ETF -308.38 7,806.16 -3.80%
IBB iShares NASDAQ Biotechnology ETF -269.85 10,298.68 -2.55%
HYG iShares iBoxx $ High Yield Corporate Bond ETF -246.68 20,004.97 -1.22%
TLT iShares 20+ Year Treasury Bond ETF -188.77 8,430.98 -2.19%
TIP iShares TIPS Bond ETF -136.25 23,679.61 -0.57%
VXF Vanguard Extended Market ETF -108.14 5,241.58 -2.02%
XOP SPDR S&P Oil & Gas Exploration & Production ETF -89.36 2,100.36 -4.08%
IEF iShares 7-10 Year Treasury Bond ETF -85.32 7,540.64 -1.12%
SLV iShares Silver Trust -76.10 5,513.79 -1.36%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 9,525.00 1,794,381.50 0.53%
International Equity 3,454.96 761,201.80 0.45%
U.S. Fixed Income 1,886.09 523,199.42 0.36%
International Fixed Income 242.04 56,727.92 0.43%
Commodities -146.35 66,015.26 -0.22%
Currency -15.29 1,324.59 -1.15%
Leveraged 252.11 30,500.73 0.83%
Inverse -65.32 17,094.22 -0.38%
Asset Allocation 32.75 8,584.35 0.38%
Alternatives 78.21 4,088.80 1.91%
Total: 15,244.20 3,263,118.59 0.47%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
% of Average
IDLB PowerShares FTSE International Low Beta Equal Weight Portfolio 27,164 102,110 375.91%
SMLF iShares Edge MSCI Multifactor USA Small-Cap ETF 11,303 46,368 410.22%
SPLG SPDR Portfolio Large Cap ETF 3,718 20,340 547.11%
SPTM SPDR Portfolio Total Stock Market ETF 5,503 36,182 657.45%
PSCD PowerShares S&P SmallCap Consumer Discretionary Portfolio 4,830 13,453 278.55%
CLTL PowerShares Treasury Collateral Portfolio 320 2,028 634.60%
SPYV SPDR Portfolio S&P 500 Value ETF 5,589 27,935 499.82%
SPYG SPDR Portfolio S&P 500 Growth ETF 13,860 67,474 486.82%
RJI Elements Rogers International Commodity Index-Total Return ETN 263,627 770,174 292.14%
RING iShares MSCI Global Gold Miners ETF 331,311 801,972 242.06%

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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