Investors Flock To Fixed Income ETFs

September 06, 2019

Investors tiptoed back into ETFs this week after pulling money out of the space in August. On net, nearly $6 billion flowed into U.S.-listed ETFs during the week ending Thursday, Sep. 5, according to FactSet. That puts year-to-date inflows at $150.7 billion, less than the $176.1 billion at this same time last year.

As seen all year long, most of this week’s inflows went into U.S. fixed income ETFs. That segment picked up $3.7 billion, led by a $1.1 billion inflow into the iShares 20+ Year Treasury Bond ETF (TLT).

The iShares 7-10 Year Treasury Bond ETF (IEF), the Vanguard Intermediate-Term Corporate Bond ETF (VCIT), the iShares 1-3 Year Treasury Bond ETF (SHY) and the iShares 3-7 Year Treasury Bond ETF (IEI) also saw strong interest during the week.

Markets continue to expect the Fed to cut rates later this month, but yields on Treasuries spiked from their recent lows following the release of better-than-expected economic data and word that the U.S. and China would hold trade talks next month.

Investors Tepid On Equities

Meanwhile, on the equities side, a modest $258 million and $942 million flowed into U.S. and international ETFs, respectively.

Stocks bounced back thanks to better economic data and trade talk hopes, but growth concerns kept investors from adding to their holdings more aggressively.

The Vanguard Total Stock Market ETF (VTI), the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) and the iShares Edge MSCI Min Vol U.S.A. ETF (USMV) were among the most popular equity ETFs of the week.

The VanEck Vectors Gold Miners ETF (GDX) also saw some interest as gold prices hit fresh six-year highs. The SPDR Gold Trust (GLD) had inflows of nearly half a billion of its own during the week.

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
TLT iShares 20+ Year Treasury Bond ETF 1,090.43 17,864.08 6.10%
IEF iShares 7-10 Year Treasury Bond ETF 820.33 19,141.49 4.29%
VCIT Vanguard Intermediate-Term Corporate Bond ETF 578.46 24,654.06 2.35%
SHY iShares 1-3 Year Treasury Bond ETF 501.64 18,180.76 2.76%
VTI Vanguard Total Stock Market ETF 496.73 118,814.72 0.42%
GLD SPDR Gold Trust 473.23 44,226.62 1.07%
OMFL Invesco Russell 1000 Dynamic Multifactor ETF 469.52 1,526.70 30.75%
USMV iShares Edge MSCI Min Vol U.S.A. ETF 358.30 33,959.03 1.06%
GDX VanEck Vectors Gold Miners ETF 343.35 12,563.77 2.73%
IEI iShares 3-7 Year Treasury Bond ETF 319.34 7,869.77 4.06%

 

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
HYG iShares iBoxx USD High Yield Corporate Bond ETF -720.68 16,617.63 -4.34%
SPY SPDR S&P 500 ETF Trust -543.89 262,271.45 -0.21%
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF -539.71 35,915.87 -1.50%
IWM iShares Russell 2000 ETF -365.28 39,313.87 -0.93%
IJR iShares Core S&P Small Cap ETF -315.54 42,608.03 -0.74%
XLV Health Care Select Sector SPDR Fund -302.02 16,482.42 -1.83%
SHV iShares Short Treasury Bond ETF -265.41 24,063.72 -1.10%
DIA SPDR Dow Jones Industrial Average ETF Trust -250.66 21,241.10 -1.18%
IWV iShares Russell 3000 ETF -205.81 9,426.49 -2.18%
SPTL SPDR Portfolio Long Term Treasury ETF -194.50 2,565.21 -7.58%

 

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 258.27 2,247,118.06 0.01%
International Equity 941.71 792,067.36 0.12%
U.S. Fixed Income 3,724.20 720,574.56 0.52%
International Fixed Income 403.41 82,095.29 0.49%
Commodities  619.49 81,765.34 0.76%
Currency 15.55 1,500.98 1.04%
Leveraged -482.49 36,940.57 -1.31%
Inverse 384.75 12,623.39 3.05%
Asset Allocation 47.29 9,940.82 0.48%
Alternatives 78.16 4,476.70 1.75%
Total: 5,990.34 3,989,103.06 0.15%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 48,039.88 2,247,118.06 2.14%
International Equity -3,245.60 792,067.36 -0.41%
U.S. Fixed Income 88,767.33 720,574.56 12.32%
International Fixed Income 11,478.35 82,095.29 13.98%
Commodities  6,517.27 81,765.34 7.97%
Currency -287.40 1,500.98 -19.15%
Leveraged -5,968.93 36,940.57 -16.16%
Inverse 4,816.34 12,623.39 38.15%
Asset Allocation 83.43 9,940.82 0.84%
Alternatives 474.33 4,476.70 10.60%
Total: 150,675.00 3,989,103.06 3.78%

 

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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