US Equity ETF Flows Reverse Trend

February 15, 2019

The week ended Thursday, Feb. 14 was one of—if not the top—asset-gathering weeks for U.S.-listed ETFs in the past 12 months, with $9.2 billion in inflows.

U.S. equity ETFs, which have seen outflows of more than $20 billion year-to-date, saw a reversal of this trend, with the asset class gaining more than $6 billion during the week. Meanwhile, international equity ETFs lost $1.2 billion during the week, and U.S. fixed-income ETFs gained $3 billion.

The only other ETF asset classes to have net outflows during the week and still be down year-to-date in terms of flows were currency, commodities and asset allocation.

Smart-Beta/Fixed-Income ETFs See Top Flows

The SPDR S&P 500 Trust ETF (SPY) pulled in the most of any ETF, gaining $1.8 billion, but looking beyond that sees flows taking an interesting turn. SPY was followed by the iShares MBS ETF (MBB), which tracks investment-grade mortgage-backed securities, gained $1.3 billion. In fact, fixed-income ETFs represented fully half of the top 10 ETFs for inflows. Three smart-beta ETFs almost made the top 10 inflows for the week.

But the Oppenheimer Russell 1000 Dynamic Multifactor ETF (OMFL) was perhaps the most interesting fund of the week. It increased its assets by 68%, with a gain of $559.3 million, a massive influx of dollars for a fund under $1 billion in assets.

With regard to the fixed-income flows, the Vanguard Total International Bond Index ETF (BNDX) was in the No. 4 spot on the top 10 list, pulling in $872.3 million, while the Schwab Short-Term U.S. Treasury ETF (SCHO) gained $713.8 million to claim the fifth spot on the list. The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) and the iShares 20+ Year Treasury Bond ETF (TLT) each had inflows of more than $335 million.

Two smart-beta ETFs focusing on volatility claimed the Nos. 3 and 10 spots, with the Invesco S&P 500 Low Volatility ETF (SPLV) and the iShares Edge MSCI Min Vol U.S.A. ETF (USMV), gaining $880.2 million and $339 million, respectively.

Varied Outflows
Four fixed-income ETFs made it into the top 10 for outflows, with the Vanguard Short-Term Bond ETF (BSV) losing $591.1 million to claim the top spot. International equities had some representation as well in the top outflows list, with the Vanguard FTSE All-World ex-US ETF (VEU) losing $524 million and the iShares MSCI ACWI ETF (ACWI) losing $470.1 million.

Perhaps the most remarkable outflows was the $421.9 million lost by the HYG competitor SPDR Bloomberg Barclays High Yield Bond ETF (JNK), despite HYG’s large gain, and the $242.9 million lost by the SCHO competitor iShares Short Treasury Bond ETF (SHV).

Additionally, while SPY, with its large-cap U.S. focus, saw the most inflows of any ETF, the blue-chip SPDR Dow Jones Industrial Average ETF Trust (DIA) saw $233.1 in outflows.

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 1,843.34 256,977.93 0.72%
MBB iShares MBS ETF 1,302.61 15,294.97 8.52%
SPLV Invesco S&P 500 Low Volatility ETF 880.16 10,069.51 8.74%
BNDX Vanguard Total International Bond ETF 872.30 15,804.25 5.52%
SCHO Schwab Short-Term U.S. Treasury ETF 713.79 5,521.60 12.93%
OMFL Oppenheimer Russell 1000 Dynamic Multifactor ETF 559.33 824.49 67.84%
HYG iShares iBoxx USD High Yield Corporate Bond ETF 381.54 15,310.37 2.49%
IYR iShares U.S. Real Estate ETF 354.14 4,575.26 7.74%
TLT iShares 20+ Year Treasury Bond ETF 339.69 11,190.91 3.04%
USMV iShares Edge MSCI Min Vol U.S.A. ETF 339.06 22,386.04 1.51%

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
BSV Vanguard Short-Term Bond ETF -591.14 23,069.79 -2.56%
VEU Vanguard FTSE All-World ex-US ETF -524.00 22,372.32 -2.34%
XLK Technology Select Sector SPDR Fund -500.09 18,325.76 -2.73%
ACWI iShares MSCI ACWI ETF -470.10 10,006.65 -4.70%
JNK SPDR Bloomberg Barclays High Yield Bond ETF -421.89 8,147.08 -5.18%
SPYV SPDR Portfolio S&P 500 Value ETF -261.51 2,483.28 -10.53%
GLD SPDR Gold Trust -259.57 33,628.60 -0.77%
SHV iShares Short Treasury Bond ETF -242.92 20,615.23 -1.18%
DIA SPDR Dow Jones Industrial Average ETF Trust -233.14 21,030.68 -1.11%
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF -197.37 31,858.67 -0.62%

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 6,125.96 2,075,947.57 0.30%
International Equity -1,228.76 810,689.71 -0.15%
U.S. Fixed Income 2,992.49 600,448.42 0.50%
International Fixed Income 1,062.68 73,374.31 1.45%
Commodities  -190.33 66,008.00 -0.29%
Currency -31.01 1,733.68 -1.79%
Leveraged 146.65 35,972.18 0.41%
Inverse 239.31 11,727.33 2.04%
Asset Allocation -44.35 9,167.05 -0.48%
Alternatives 94.81 4,389.83 2.16%
Total: 9,167.46 3,689,458.09 0.25%

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -20,994.05 2,075,947.57 -1.01%
International Equity 5,764.74 810,689.71 0.71%
U.S. Fixed Income 16,351.74 600,448.42 2.72%
International Fixed Income 6,427.16 73,374.31 8.76%
Commodities  997.45 66,008.00 1.51%
Currency -66.45 1,733.68 -3.83%
Leveraged -754.48 35,972.18 -2.10%
Inverse 1,984.71 11,727.33 16.92%
Asset Allocation -701.32 9,167.05 -7.65%
Alternatives 226.81 4,389.83 5.17%
Total: 9,236.32 3,689,458.09 0.25%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
AGGE IQ Enhanced Core Bond U.S. ETF 56,209 280,145 498.40%
OCIO ClearShares OCIO ETF 823 3,749 455.30%
JMBS Janus Henderson Mortgage-Backed Securities ETF 13,792 40,668 294.87%
COPX Global X Copper Miners ETF 29,074 82,861 285.00%
HFXI IQ 50 Percent Hedged FTSE International ETF 66,970 143,102 213.68%
MFUS PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF 7,431 15,491 208.48%
JPMB JPMorgan USD Emerging Markets Sovereign Bond ETF 7,246 22,407 309.23%
CSML IQ Chaikin U.S. Small Cap ETF 67,158 128,998 192.08%
FYT First Trust Small Cap Value AlphaDEX Fund 18,102 31,196 172.33%
EPS WisdomTree U.S. Earnings 500 Fund 31,660 57,733 182.35%

 

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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