ETF Investors Storm Equities, Flee Bonds

September 20, 2019

As the Fed cut rates this week and markets absorbed the fallout from the Saudi oil strike, investors took cover in equity ETFs in throngs, sending more than $23 billion in new assets to the space.

Meanwhile, U.S fixed income was abandoned to the tune of $622 million in outflows, one of the largest flows disparities between stocks and bonds we have seen in a while.

For the week ending Thursday, September 19, overall ETFs saw inflows of $23.44 billion, bringing year-to-date inflows to $196 billion. Overall assets in U.S.-listed ETFs now stand at $4.1 trillion.

Interestingly, the recent surge of inflows to equity ETFs has greatly closed the new-flows gap between fixed income and stocks ETFs. At one point this year, bond ETFs had a wide lead in new asset, some two-thirds of all new assets. After this week, U.S. fixed income ETFs so far this year have attracted $92.7 billion in inflows compared with U.S. equity’s $91.8 billion.

Large Cap Stalwarts Atop Flows

Not surprisingly, investors sought the relative safe, broad market vanilla equity funds.

Stock ETFs captured nine of the 10 top spots for inflows. The iShares Core S&P 500 ETF (IVV) led the way, with $2.2 billion; followed by the Vanguard Mid-Cap ETF (VO), with $2.1 billion; and the Vanguard Growth ETF (VUG), with $1.6 billion. The world’s largest ETF, the SPDR S&P 500 ETF Trust (SPY), captured $1.3 billion.

One fixed income ETF bucked the bond flow trend. The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) saw $931 million in inflows.

Bond-Voyage

Investors exited midterm and long-term Treasury funds, such as the iShares 7-10 Year Treasury Bond ETF (IEF), which saw $2 billion exit the fund; and the SPDR Bloomberg Barclays Intermediate Term Treasury ETF (ITE), with $945 million in outflows, more than half the fund’s AUM, leaving it with $931 million.

Outside fixed income, the First Trust NYSE Arca Biotechnology Index Fund (FBT) saw a 32% loss of assets under management, shedding $600 million.

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 2,279.59 189,920.31 1.20%
VO Vanguard Mid-Cap ETF 2,109.68 29,454.88 7.16%
VUG Vanguard Growth ETF 1,595.02 43,883.55 3.63%
SPY SPDR S&P 500 ETF Trust 1,343.81 277,342.95 0.48%
VTI Vanguard Total Stock Market ETF 1,205.96 123,312.10 0.98%
VB Vanguard Small-Cap ETF 1,003.47 26,405.93 3.80%
HYG iShares iBoxx USD High Yield Corporate Bond ETF 931.09 17,899.23 5.20%
IWM iShares Russell 2000 ETF 906.12 46,379.32 1.95%
SCHA Schwab U.S. Small-Cap ETF 806.78 9,200.39 8.77%
SCHG Schwab U.S. Large-Cap Growth ETF 736.50 8,970.79 8.21%

 

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
IEF iShares 7-10 Year Treasury Bond ETF -2,062.70 16,439.41 -12.55%
ITE SPDR Bloomberg Barclays Intermediate Term Treasury ETF -945.57 931.44 -101.52%
FBT First Trust NYSE Arca Biotechnology Index Fund -599.48 1,878.57 -31.91%
EWJ iShares MSCI Japan ETF -533.52 11,643.76 -4.58%
SPTL SPDR Portfolio Long Term Treasury ETF -519.94 1,892.21 -27.48%
XLV Health Care Select Sector SPDR Fund -517.21 17,104.11 -3.02%
SPYG SPDR Portfolio S&P 500 Growth ETF -276.10 5,216.26 -5.29%
SPIB SPDR Portfolio Intermediate Term Corporate Bond ETF -269.59 4,832.16 -5.58%
VFH Vanguard Financials ETF -267.15 7,326.87 -3.65%
IYR iShares U.S. Real Estate ETF -264.24 5,001.98 -5.28%

 

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 23,028.70 2,352,227.18 0.98%
International Equity 158.44 808,653.41 0.02%
U.S. Fixed Income -622.12 716,603.16 -0.09%
International Fixed Income 258.63 81,500.13 0.32%
Commodities  378.99 79,124.81 0.48%
Currency -53.68 1,467.93 -3.66%
Leveraged 17.13 35,835.22 0.05%
Inverse 182.47 12,282.76 1.49%
Asset Allocation 7.23 10,187.99 0.07%
Alternatives 86.02 4,610.05 1.87%
Total: 23,441.82 4,102,492.63 0.57%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 91,488.30 2,352,227.18 3.89%
International Equity -3,261.93 808,653.41 -0.40%
U.S. Fixed Income 92,736.45 716,603.16 12.94%
International Fixed Income 11,460.29 81,500.13 14.06%
Commodities  6,496.29 79,124.81 8.21%
Currency -320.69 1,467.93 -21.85%
Leveraged -7,558.98 35,835.22 -21.09%
Inverse 4,908.83 12,282.76 39.97%
Asset Allocation 229.70 10,187.99 2.25%
Alternatives 777.36 4,610.05 16.86%
Total: 196,955.62 4,102,492.63 4.80%

 

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
HUSE Strategy Shares U.S. Market Rotation Strategy ETF 32,848 110,516 336.45%
DGL Invesco DB Gold Fund 52,957 144,115 272.13%
IEUS iShares MSCI Europe Small-Cap ETF 15,509 49,078 316.44%
SGDM Sprott Gold Miners ETF 152,967 358,360 234.27%
HECO Strategy Shares EcoLogical Strategy ETF 12,399 31,078 250.65%
PSCH Invesco S&P SmallCap Health Care ETF 19,394 43,513 224.36%
GBF iShares Government/Credit Bond ETF 8,018 16,388 204.38%
RFFC RiverFront Dynamic U.S. Flex-Cap ETF 22,497 61,929 275.28%
EBND SPDR Bloomberg Barclays Emerging Markets Local Bond ETF 171,803 373,276 217.27%
BDCS ETRACS Linked to the Wells Fargo Business Development Company Index ETN 11,595 18,713 161.39%

 

 

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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