Turmoil Doesn't Deter ETF Inflows

October 26, 2018

Despite another week of intense stock market volatility, exchange-traded fund investors didn’t flinch. Altogether, they added $3.7 billion to U.S.-listed ETFs, the first net inflow in three weeks.

Of the total inflows, U.S. equity ETFs garnered the largest share—$3.5 billion—even as stocks got hammered this week. At one point, the S&P 500 had all its gains for the year wiped out, and briefly entered correction territory, down more than 10% from its all-time high notched in September.

The iShares Core S&P 500 ETF (IVV), the SPDR S&P 500 ETF Trust (SPY) and the Communication Services Select Sector SPDR Fund (XLC) were among the biggest flows winners of the week.

Int'l Equity Investors Unfazed

ETF investors also added $1.2 billion to international equity ETFs, unfazed by the precipitous decline in international markets. The JPMorgan BetaBuilders Canada ETF (BBCA) and the JPMorgan BetaBuilders Japan ETF (BBJP) led inflows for this group.

Meanwhile, the area to see the largest outflows this week was U.S. fixed income, with a net $1.6 billion coming out of ETFs tied to that asset class. The benchmark U.S. 10-year Treasury yield sagged from 3.2% to as low as 3.06%, pushing prices for Treasuries higher.

That benefited funds like the iShares 1-3 Year Treasury Bond ETF (SHY), which picked up assets from investors.

Conversely, prices for higher-risk bonds, like corporate junk bonds, declined in tandem with the rout in equities. The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) appeared on the top outflows list for the week.

For a full list of this week’s top inflows and outflows, see the tables below:

Contact Sumit Roy at [email protected]

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
IVV iShares Core S&P 500 ETF 2,608.96 154,546.32 1.69%
SPY SPDR S&P 500 ETF Trust 1,929.89 251,946.89 0.77%
XLC Communication Services Select Sector SPDR Fund 960.12 3,643.75 26.35%
SMH VanEck Vectors Semiconductor ETF 601.33 1,339.05 44.91%
JPST JPMorgan Ultra-Short Income ETF 499.38 3,228.50 15.47%
BBCA JPMorgan BetaBuilders Canada ETF 372.73 1,830.06 20.37%
SHY iShares 1-3 Year Treasury Bond ETF 290.29 14,258.02 2.04%
TQQQ ProShares UltraPro QQQ 225.00 3,721.61 6.05%
VB Vanguard Small-Cap ETF 221.96 22,052.64 1.01%
BBJP JPMorgan BetaBuilders Japan ETF 219.34 2,171.45 10.10%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
HYG iShares iBoxx USD High Yield Corporate Bond ETF -739.43 14,111.30 -5.24%
QQQ Invesco QQQ Trust -692.60 64,725.48 -1.07%
XLY Consumer Discretionary Select Sector SPDR Fund -578.02 13,086.27 -4.42%
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF -496.08 31,615.81 -1.57%
TLT iShares 20+ Year Treasury Bond ETF -433.16 7,798.86 -5.55%
XLF Financial Select Sector SPDR Fund -373.76 27,437.07 -1.36%
AGG iShares Core U.S. Aggregate Bond ETF -313.41 53,086.62 -0.59%
JNK SPDR Bloomberg Barclays High Yield Bond ETF -301.98 7,869.07 -3.84%
VXX iPath S&P 500 VIX Short-Term Futures ETN -301.63 941.39 -32.04%
FBT First Trust NYSE Arca Biotechnology Index Fund -299.51 2,662.34 -11.25%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 3,487.49 1,967,460.97 0.18%
International Equity 1,211.84 731,277.08 0.17%
U.S. Fixed Income -1,645.44 560,070.20 -0.29%
International Fixed Income 107.39 65,381.53 0.16%
Commodities  167.56 61,559.19 0.27%
Currency 0.00 1,107.36 0.00%
Leveraged 935.75 33,423.92 2.80%
Inverse -266.37 13,701.16 -1.94%
Asset Allocation -7.85 8,918.10 -0.09%
Alternatives -288.97 4,707.10 -6.14%
Total: 3,701.41 3,447,606.61 0.11%

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 91,974.19 1,967,460.97 4.67%
International Equity 41,996.50 731,277.08 5.74%
U.S. Fixed Income 53,114.07 560,070.20 9.48%
International Fixed Income 10,132.89 65,381.53 15.50%
Commodities  -460.53 61,559.19 -0.75%
Currency -77.47 1,107.36 -7.00%
Leveraged 5,955.76 33,423.92 17.82%
Inverse 1,997.62 13,701.16 14.58%
Asset Allocation 669.43 8,918.10 7.51%
Alternatives 185.49 4,707.10 3.94%
Total: 205,487.95 3,447,606.61 5.96%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
VTC Vanguard Total Corporate Bond ETF 12,788 65,842 514.87%
IQDG WisdomTree International Quality Dividend Growth 10,884 36,327 333.76%
QQXT First Trust NASDAQ-100 Ex-Technology Sector Index Fund 12,375 39,679 320.65%
GBF iShares Government/Credit Bond ETF 4,263 12,627 296.18%
SPYX SPDR S&P 500 Fossil Fuel Reserves Free ETF 16,064 46,528 289.65%
IQDY FlexShares International Quality Dividend Dynamic Index Fund 9,514 27,489 288.93%
ESGG FlexShares STOXX Global ESG Impact Index Fund 1,607 4,331 269.43%
ISMD Inspire Small/Mid Cap Impact ETF 17,167 46,113 268.61%
XMX WisdomTree Global ex-Mexico Equity Fund 18,112 40,333 222.69%
FBT First Trust NYSE Arca Biotechnology Index Fund 436,106 848,961 194.67%

 

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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