Bond ETFs Fuel $6B Of Weekly ETF Outflows

February 16, 2018

Another week of volatility led to outflows from U.S.-listed ETFs. According to FactSet, $6.1 billion exited ETFs during the week ending Thursday, Feb. 15, on top of the $18.9 billion of outflows last week.

This time, the market volatility was to the upside. The S&P 500 was up as much as 5% from last Friday to this Friday, but that didn’t stop investors from pulling $6.7 billion from U.S. equity ETFs.

U.S. fixed-income ETFs registered outflows of $3.1 billion, as bonds sold off and yields rose. The U.S. 10-year Treasury bond yield reached a four-year high of 2.93% during the middle of the week after the government released reports showing inflation rising faster than expected.

Even after two weeks of hefty outflows, ETFs are still holding on to respectable year-to-date inflows of $46 billion, as long-term investors remain unfazed by the recent bout of volatility in financial markets.

SPY & Bond ETFs Lose Favor

Just like last week, the SPDR S&P 500 ETF Trust (SPY) was the biggest victim of the outflows from ETFs. Investors pulled $4.8 billion out of the fund this week. Currently, the fund has year-to-date outflows of $7.8 billion, a sharp change of fortune for the fund that had year-to-date inflows of $13.6 billion as recently as the end of January.

Other notable ETFs to find themselves on the top outflows list for the week include the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and the iShares JP Morgan USD Emerging Markets Bond ETF (EMB).

Meanwhile, on the other side of the ledger, a pair of Vanguard ETFs topped the inflows list: the Vanguard Growth ETF (VUG) and the Vanguard S&P 500 ETF (VOO), each with creations of more than $850 million.

The SPDR Bloomberg Barclays 1-3 Month T-bill ETF (BIL) and the iShares Short Treasury Bond ETF (SHV) also saw interest as investors searched for safe assets with minimal interest rate risk.

The VanEck Vectors Gold Miners ETF (GDX) also pulled in a notable $610 million 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
VUG Vanguard Growth ETF 881.55 32,560.10 2.78%
VOO Vanguard S&P 500 ETF 851.56 87,645.23 0.98%
IEFA iShares Core MSCI EAFE ETF 810.09 50,558.60 1.63%
BIL SPDR Bloomberg Barclays 1-3 Month T-Bill ETF 726.98 2,852.80 34.20%
GDX VanEck Vectors Gold Miners ETF 610.06 7,789.82 8.50%
SMH VanEck Vectors Semiconductor ETF 552.76 1,457.05 61.13%
IVV iShares Core S&P 500 ETF 552.47 152,402.90 0.36%
VT Vanguard Total World Stock ETF 469.02 11,798.44 4.14%
XT iShares Exponential Technologies ETF 409.27 2,115.29 23.99%
SHV iShares Short Treasury Bond ETF 396.83 9,127.62 4.55%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -4,818.52 270,937.34 -1.75%
QQQ PowerShares QQQ Trust -1,648.82 59,343.36 -2.70%
JNK SPDR Bloomberg Barclays High Yield Bond ETF -1,562.42 8,569.60 -15.42%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF -1,532.81 32,941.65 -4.45%
IWM iShares Russell 2000 ETF -996.70 40,666.95 -2.39%
EMB iShares JP Morgan USD Emerging Markets Bond ETF -874.09 11,632.38 -6.99%
XLP Consumer Staples Select Sector SPDR Fund -873.76 7,189.63 -10.84%
HYG iShares iBoxx $ High Yield Corporate Bond ETF -750.44 14,771.75 -4.83%
VNQ Vanguard Real Estate ETF -651.59 29,384.24 -2.17%
XLI Industrial Select Sector SPDR Fund -601.30 13,143.71 -4.37%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -6,738.05 1,930,374.87 -0.35%
International Equity 3,947.47 836,289.85 0.47%
U.S. Fixed Income -3,015.71 515,887.63 -0.58%
International Fixed Income -353.02 61,828.31 -0.57%
Commodities  93.39 68,768.30 0.14%
Currency 38.47 1,366.22 2.82%
Leveraged 702.46 35,853.19 1.96%
Inverse -633.43 13,717.47 -4.62%
Asset Allocation 9.55 8,891.06 0.11%
Alternatives -77.37 4,493.95 -1.72%
Total: -6,026.23 3,477,470.86 -0.17%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
GYLD Arrow Dow Jones Global Yield ETF 67,589 316,091 467.66%
FYT First Trust Small Cap Value AlphaDEX Fund 20,927 46,518 222.28%
INP iPath MSCI India Index ETN 8,206 15,850 193.15%
PSL PowerShares DWA Consumer Staples Momentum Portfolio 11,401 22,753 199.57%
FDIV First Trust Strategic Income ETF 17,153 47,438 276.56%
IYLD iShares Morningstar Multi-Asset Income ETF 66,601 112,280 168.59%
AGGY WisdomTree Barclays Yield Enhanced U.S. Aggregate Bond Fund 111,205 183,515 165.02%
PBS PowerShares Dynamic Media Portfolio 25,047 50,407 201.25%
GLTR ETFS Physical Precious Metals Basket Shares 44,739 140,267 313.52%
IQLT iShares Edge MSCI Intl Quality Factor ETF 46,136 53,673 116.34%

 

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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