ETF Inflows Start 2019 On Strong Note

January 11, 2019

After a strong 2018, ETF flows started the new year on a positive note. For the first full week of 2019, U.S.-listed ETFs witnessed inflows of $8.1 billion, adding to the $315.4 billion worth of inflows from last year, the second-largest annual haul ever.

Year-to-date inflows now stand at $12.6 billion after seven trading sessions.

Credit Rallies

The latest weekly data, which captures flows for the week ending Thursday, Jan. 10, showed that the largest share of inflows headed for U.S. fixed income ETFs. Beaten-down corporate and emerging market bond funds were the biggest winners.

The iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), the iShares iBoxx USD High Yield Corporate Bond ETF (HYG) and the iShares JP Morgan USD Emerging Markets Bond ETF (EMB) each had weekly inflows of $848 million or more.

In contrast, relatively safe Treasury and short-term bond ETFs weren’t nearly as popular. The iShares 20+ Year Treasury Bond ETF (TLT) and the Vanguard Short-Term Bond ETF (BSV) both made the top outflows list.

‘QUAL’ Inflows Offset By Others

Other than fixed income, the other area to garner favor from investors this week was international equity. ETFs tied to that asset class picked up $3.4 billion in new money, with $862 million of that making its way into the iShares Core MSCI Emerging Markets ETF (IEMG).

On the flip side, U.S. equity ETFs didn’t get much love from investors this week. A net $2.2 billion flowed out of the segment, even as the iShares Edge MSCI U.S.A. Quality Factor ETF (QUAL) picked up a sizable $1.5 billion in fresh cash.

That was more than offset by outflows from the likes of the SPDR S&P 500 ETF Trust (SPY) and the Financial Select Sector SPDR Fund (XLF).

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
QUAL iShares Edge MSCI U.S.A. Quality Factor ETF 1,518.46 8,492.21 17.88%
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF 995.84 31,015.23 3.21%
HYG iShares iBoxx USD High Yield Corporate Bond ETF 960.09 14,388.95 6.67%
IEMG iShares Core MSCI Emerging Markets ETF 862.33 51,799.33 1.66%
EMB iShares JP Morgan USD Emerging Markets Bond ETF 848.10 15,404.09 5.51%
SHV iShares Short Treasury Bond ETF 628.98 21,066.98 2.99%
USFR WisdomTree Floating Rate Treasury Fund 586.95 1,789.35 32.80%
AGG iShares Core U.S. Aggregate Bond ETF 458.73 57,769.21 0.79%
SMH VanEck Vectors Semiconductor ETF 450.47 1,156.29 38.96%
IWV iShares Russell 3000 ETF 418.77 9,576.11 4.37%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -1,814.02 244,488.08 -0.74%
XLF Financial Select Sector SPDR Fund -788.06 23,673.96 -3.33%
TLT iShares 20+ Year Treasury Bond ETF -738.02 9,144.52 -8.07%
BSV Vanguard Short-Term Bond ETF -714.41 27,212.55 -2.63%
VGT Vanguard Information Technology ETF -616.52 17,131.62 -3.60%
QQQ Invesco QQQ Trust -612.85 62,478.60 -0.98%
XLY Consumer Discretionary Select Sector SPDR Fund -512.42 11,777.66 -4.35%
IVE iShares S&P 500 Value ETF -430.99 14,933.71 -2.89%
IWD iShares Russell 1000 Value ETF -424.51 38,416.10 -1.11%
FLOT iShares Floating Rate Bond ETF -342.73 10,920.09 -3.14%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -2,209.29 1,954,325.23 -0.11%
International Equity 3,444.18 768,243.04 0.45%
U.S. Fixed Income 5,280.10 604,209.06 0.87%
International Fixed Income 1,168.00 67,404.53 1.73%
Commodities  348.29 64,601.83 0.54%
Currency -84.78 1,699.15 -4.99%
Leveraged -548.53 32,773.01 -1.67%
Inverse 709.91 12,036.42 5.90%
Asset Allocation -19.15 9,646.55 -0.20%
Alternatives 35.03 5,050.36 0.69%
Total: 8,123.75 3,519,989.17 0.23%

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -6,233.34 1,954,325.23 -0.32%
International Equity 5,310.09 768,243.04 0.69%
U.S. Fixed Income 10,632.72 604,209.06 1.76%
International Fixed Income 1,377.41 67,404.53 2.04%
Commodities  770.97 64,601.83 1.19%
Currency -107.71 1,699.15 -6.34%
Leveraged -468.28 32,773.01 -1.43%
Inverse 1,262.00 12,036.42 10.48%
Asset Allocation 51.91 9,646.55 0.54%
Alternatives -11.75 5,050.36 -0.23%
Total: 12,584.02 3,519,989.17 0.36%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
ARCM Arrow Reserve Capital Management ETF 856 2,751 321.32%
XRLV Invesco S&P 500 ex-Rate Sensitive Low Volatility ETF 57,236 158,206 276.41%
DEF Invesco Defensive Equity ETF 39,063 97,742 250.22%
VGIT Vanguard Intermediate-Term Treasury Index ETF 810,110 1,894,874 233.90%
DMRI DeltaShares S&P International Managed Risk ETF 3,421 6,850 200.23%
BEMO Aptus Behavioral Momentum ETF 23,950 45,048 188.09%
FYT First Trust Small Cap Value AlphaDEX Fund 22,189 40,962 184.61%
ISTB iShares Core 1-5 Year USD Bond ETF 566,862 999,388 176.30%
DMRL DeltaShares S&P 500 Managed Risk ETF 4,433 7,549 170.26%
DRSK Aptus Defined Risk ETF 34,929 55,278 158.26%

 

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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