Massive $34B Pours Into ETFs As Stocks Hit Record Highs

September 21, 2018

Investors poured a massive sum of money into ETFs this week as U.S. stocks raced to record highs. More than $34.3 billion entered U.S.-listed ETFs during the week ending Thursday, Sep. 20, according to FactSet, pushing year-to-date inflows to $214.9 billion. It was the largest weekly inflow since the middle of March.

The vast majority of this week’s new money—$31.2 billion—headed straight for low-cost U.S. equity ETFs.

That’s not surprising. The U.S. stock market remains the standout performer in the world, easily outperforming most international equity markets and other asset classes. The S&P 500 topped 2,940 this week, giving it a gain of more than 11% for the year.

Investors graced ETFs offering cheap, broad exposure to U.S. equities with their money. Nearly $8.7 billion flowed into the SPDR S&P 500 ETF Trust (SPY); $3.5 billion flowed into the Technology Select Sector SPDR Fund (XLK); and $2.6 billion flowed into the Consumer Discretionary Select Sector SPDR Fund (XLY).

Tech and consumer discretionary are the two top-performing stock market sectors of the year, with gains of nearly 20% each.

Vanguard funds also fared well this week. ETFs from that issuer with large inflows included the Vanguard Small-Cap ETF (VB), the Vanguard S&P 500 ETF (VOO) and the Vanguard Mid-Cap ETF (VO).

On the other hand, a plethora of iShares ETFs dominated the weekly outflows list. The iShares Russell 2000 ETF (IWM), the iShares Russell 1000 Growth ETF (IWF) and the iShares iBoxx USD High Yield Corporate Bond ETF (HYG) each had weekly outflows of more than $650 million.

While attracting much smaller sums, ETF segments other than U.S. equities also had inflows. U.S. fixed-income ETFs had net inflows of $1.6 billion; international equity ETFs had inflows of $761 million; and international fixed-income ETFs had inflows of $364 million.

Treasury bond prices sagged this week as the U.S. 10-year yield increased from 2.99% to as much as 3.1%, nearly matching the seven-year high from May.

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 8,668.27 280,618.40 3.19%
XLK Technology Select Sector SPDR Fund 3,445.20 26,496.07 14.95%
XLY Consumer Discretionary Select Sector SPDR Fund 2,567.17 18,393.09 16.22%
VB Vanguard Small-Cap ETF 2,478.65 27,665.69 9.84%
VOO Vanguard S&P 500 ETF 2,354.20 106,588.37 2.26%
VO Vanguard Mid-Cap ETF 1,221.05 25,972.58 4.93%
VBK Vanguard Small-Cap Growth ETF 1,033.50 10,016.28 11.51%
SCHM Schwab U.S. Mid-Cap ETF 660.74 6,132.52 12.08%
VTI Vanguard Total Stock Market ETF 654.67 106,877.75 0.62%
RSP Invesco S&P 500 Equal Weight ETF 641.39 16,711.92 3.99%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
IWM iShares Russell 2000 ETF -737.77 46,804.61 -1.55%
IWF iShares Russell 1000 Growth ETF -668.19 44,283.53 -1.49%
HYG iShares iBoxx USD High Yield Corporate Bond ETF -654.11 15,536.65 -4.04%
QQQ Invesco QQQ Trust -364.41 70,590.78 -0.51%
EWJ iShares MSCI Japan ETF -282.99 16,883.04 -1.65%
EFA iShares MSCI EAFE ETF -239.28 70,755.38 -0.34%
IJH iShares Core S&P Mid-Cap ETF -185.30 50,623.45 -0.36%
IEF iShares 7-10 Year Treasury Bond ETF -142.45 9,238.14 -1.52%
TIP iShares TIPS Bond ETF -133.01 23,989.66 -0.55%
IWO iShares Russell 2000 Growth ETF -131.61 11,026.83 -1.18%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 31,239.99 2,194,435.81 1.42%
International Equity 760.52 792,095.48 0.10%
U.S. Fixed Income 1,594.82 570,139.23 0.28%
International Fixed Income 363.87 64,412.26 0.56%
Commodities  80.44 59,271.13 0.14%
Currency 0.75 1,084.89 0.07%
Leveraged -115.97 37,795.48 -0.31%
Inverse 146.10 12,740.18 1.15%
Asset Allocation 141.57 9,618.48 1.47%
Alternatives 125.51 4,750.35 2.64%
Total: 34,337.59 3,746,343.29 0.92%

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 105,024.07 2,194,435.81 4.79%
International Equity 35,985.29 792,095.48 4.54%
U.S. Fixed Income 59,437.27 570,139.23 10.43%
International Fixed Income 8,872.65 64,412.26 13.77%
Commodities  -1,711.61 59,271.13 -2.89%
Currency -107.28 1,084.89 -9.89%
Leveraged 3,724.87 37,795.48 9.86%
Inverse 2,280.25 12,740.18 17.90%
Asset Allocation 799.29 9,618.48 8.31%
Alternatives 625.43 4,750.35 13.17%
Total: 214,930.24 3,746,343.29 5.74%

 

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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