Interest Rate Angst Sparks Weekly Outflows

March 29, 2019

Concerns about falling interest rates sparked a second-straight week of ETF outflows. According to data from FactSet, $1.8 billion flowed out of U.S.-listed ETFs during the week ending Thursday, March 28.

Though U.S. stocks—as measured by the S&P 500—actually edged higher during the week, a sense of angst hung over the markets as interest rates tumbled. The U.S. 10-year Treasury yield tumbled as low as 2.34%, the lowest level since late 2017, fueling economic growth worries.

Those jitters spurred investors to pull $4.1 billion out of U.S. equity ETFs, including $2.4 billion from the Invesco QQQ Trust (QQQ), $1.7 billion from the SPDR S&P 500 ETF Trust (SPY) and $960 million from the iShares Russell 2000 ETF (IWM).

Meanwhile, investors put money to work in U.S. fixed-income ETFs, which had net inflows of $1.7 billion. Winners in that space included the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), the iShares iBoxx USD High Yield Corporate Bond ETF (HYG), the iShares Broad USD High Yield Corporate Bond ETF (USHY) and the iShares U.S. Treasury Bond ETF (GOVT).

Interestingly, despite liking fixed income as a whole, ETF investors weren’t too interested in long-term Treasury bonds this week. The iShares 20+ Year Treasury Bond ETF (TLT) had outflows of $486 million during the period.

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
IVV iShares Core S&P 500 ETF 609.11 167,735.21 0.36%
IEFA iShares Core MSCI EAFE ETF 589.09 60,197.06 0.98%
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF 575.77 33,603.36 1.71%
USMV iShares Edge MSCI Min Vol U.S.A. ETF 472.59 24,649.69 1.92%
HYG iShares iBoxx USD High Yield Corporate Bond ETF 412.81 16,039.73 2.57%
USHY iShares Broad USD High Yield Corporate Bond ETF 354.33 837.55 42.31%
VTI Vanguard Total Stock Market ETF 309.01 108,627.62 0.28%
GLD SPDR Gold Trust 260.78 33,014.20 0.79%
VYM Vanguard High Dividend Yield ETF 260.71 22,943.48 1.14%
GOVT iShares U.S. Treasury Bond ETF 256.17 8,657.64 2.96%

 

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
QQQ Invesco QQQ Trust -2,379.88 70,029.92 -3.40%
SPY SPDR S&P 500 ETF Trust -1,702.69 260,903.55 -0.65%
IWM iShares Russell 2000 ETF -960.14 42,738.20 -2.25%
XLF Financial Select Sector SPDR Fund -915.45 22,155.08 -4.13%
XLE Energy Select Sector SPDR Fund -516.76 13,760.55 -3.76%
EWJ iShares MSCI Japan ETF -500.56 13,630.93 -3.67%
TLT iShares 20+ Year Treasury Bond ETF -486.20 10,005.36 -4.86%
JNK SPDR Bloomberg Barclays High Yield Bond ETF -482.58 9,133.75 -5.28%
BKLN Invesco Senior Loan ETF -389.27 5,281.77 -7.37%
VNQ Vanguard Real Estate ETF -295.00 33,817.58 -0.87%

 

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -4,085.24 2,126,625.60 -0.19%
International Equity -47.71 812,769.77 -0.01%
U.S. Fixed Income 1,734.05 634,315.42 0.27%
International Fixed Income 235.90 74,496.89 0.32%
Commodities  218.10 65,381.60 0.33%
Currency 7.35 1,467.83 0.50%
Leveraged -0.46 36,758.86 -0.00%
Inverse 163.83 12,091.46 1.35%
Asset Allocation 8.04 9,386.59 0.09%
Alternatives -52.60 4,761.56 -1.10%
Total: -1,818.74 3,778,055.59 -0.05%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 7,454.82 2,126,625.60 0.35%
International Equity 6,279.66 812,769.77 0.77%
U.S. Fixed Income 26,507.93 634,315.42 4.18%
International Fixed Income 6,854.60 74,496.89 9.20%
Commodities  156.50 65,381.60 0.24%
Currency -320.40 1,467.83 -21.83%
Leveraged -1,800.92 36,758.86 -4.90%
Inverse 2,956.15 12,091.46 24.45%
Asset Allocation -575.54 9,386.59 -6.13%
Alternatives 614.89 4,761.56 12.91%
Total: 48,127.67 3,778,055.59 1.27%

 

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
ASHX Xtrackers MSCI China A Inclusion Equity ETF 60,121 333,142 554.12%
NFO Invesco Insider Sentiment ETF 1,738 8,366 481.34%
JHMH John Hancock Multifactor Healthcare ETF 23,161 104,259 450.14%
JHMT John Hancock Multifactor Technology ETF 16,784 77,208 460.01%
AGGE IQ Enhanced Core Bond U.S. ETF 7,127 31,972 448.58%
JPHF JPMorgan Diversified Alternatives ETF 33,365 154,999 464.56%
QDYN FlexShares Quality Dividend Dynamic Index Fund 2,249 8,379 372.59%
JHMF John Hancock Multifactor Financials ETF 15,128 54,355 359.30%
IVOO Vanguard S&P Mid-Cap 400 ETF 36,771 118,768 323.00%
CBND SPDR Bloomberg Barclays Corporate Bond ETF 10,508 30,371 289.03%

 

 

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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