ETF Investors Buy The Dip

February 26, 2021

A midweek interest rate scare didn’t stop investors from adding to their ETF holdings this week. On net, a cool $20.2 billion flowed into U.S.-listed ETFs during the week ending Thursday, Feb. 25, bringing year-to-date inflows up to $145 billion. That compares to the $77.2 billion seen at this same time a year ago.

The U.S. 10-year Treasury yield briefly topped 1.6% on Thursday, a one-year high, and up significantly from the 0.91% seen at the start of the year.

Bond prices, which move inversely to bond yields, were hammered. The iShares 20+ Year Treasury Bond ETF (TLT) shed more than 1% week-over-week, taking its year-to-date loss to more than 10%.

Unsurprisingly, TLT and other bond ETFs were among the biggest flows losers of the week. U.S. fixed income ETFs as a group registered outflows of $2.5 billion, led by the aforementioned TLT, the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) and the Vanguard Intermediate Term Corporate Bond ETF (VCIT).

Equities Unfazed

In contrast to fixed income ETFs, which shed assets, U.S. equity ETFs saw strong demand. Granted, there were some concerns with regard to growth stocks during the week—higher rates diminish the value of future cash flows—but those worries never got out of hand.

The high-flying ARK Innovation ETF (ARKK) had its largest daily outflow on record on Wednesday ($465 million), but for the week as a whole, the ETF eked out an inflow of $9 million. In fact, no ARK funds made an appearance on the weekly top outflows list, while one made an appearance on the top inflows list: the ARK Fintech Innovation ETF (ARKF).

Other in-demand ETFs during the week included the iShares Core S&P 500 ETF (IVV), the SPDR S&P 500 ETF Trust (SPY) and the Financial Select Sector SPDR Fund (XLF).

XLF, in particular, benefited from the steepening of the yield curve. The difference between the five-year and 30-year Treasury bond yields reached a 6.5-year high above 1.6% 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
IVV iShares Core S&P 500 ETF 2,471.90 253,767.50 0.97%
SPY SPDR S&P 500 ETF Trust 2,145.17 337,298.85 0.64%
XLF Financial Select Sector SPDR Fund 2,075.45 34,478.34 6.02%
IWM iShares Russell 2000 ETF 1,255.62 67,680.94 1.86%
TQQQ ProShares UltraPro QQQ 1,101.40 10,849.78 10.15%
VOO Vanguard S&P 500 ETF 935.17 197,150.98 0.47%
VTI Vanguard Total Stock Market ETF 645.58 216,639.85 0.30%
VXUS Vanguard Total International Stock ETF 640.93 42,652.97 1.50%
BUG Global X Cybersecurity ETF 591.28 876.06 67.49%
ARKF ARK Fintech Innovation ETF 552.39 4,807.56 11.49%

 

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
JNK SPDR Bloomberg Barclays High Yield Bond ETF -1,769.28 9,239.30 -19.15%
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF -1,603.87 45,427.97 -3.53%
GLD SPDR Gold Trust -1,526.53 63,997.95 -2.39%
XLK Technology Select Sector SPDR Fund -526.17 38,167.90 -1.38%
VCIT Vanguard Intermediate-Term Corporate Bond ETF -457.99 43,416.70 -1.05%
TLT iShares 20+ Year Treasury Bond ETF -438.90 14,075.57 -3.12%
IEF iShares 7-10 Year Treasury Bond ETF -419.80 13,887.77 -3.02%
USMV iShares MSCI USA Min Vol Factor ETF -362.43 28,880.34 -1.25%
PFF iShares Preferred and Income Securities ETF -335.71 17,838.62 -1.88%
ACWV iShares MSCI Global Min Vol Factor ETF -328.27 5,290.29 -6.21%

 

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 15,831.38 3,317,665.09 0.48%
International Equity 6,158.51 1,180,051.90 0.52%
U.S. Fixed Income -2,549.77 974,096.55 -0.26%
International Fixed Income 584.98 129,015.60 0.45%
Commodities -1,545.70 141,808.76 -1.09%
Currency 24.03 2,018.89 1.19%
Leveraged 1,710.17 52,263.99 3.27%
Inverse -95.02 11,933.55 -0.80%
Asset Allocation 37.91 14,156.98 0.27%
Alternatives 82.68 6,285.03 1.32%
Total: 20,239.18 5,829,296.34 0.35%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 53,992.02 3,317,665.09 1.63%
International Equity 60,983.46 1,180,051.90 5.17%
U.S. Fixed Income 18,642.44 974,096.55 1.91%
International Fixed Income 7,424.80 129,015.60 5.75%
Commodities -612.58 141,808.76 -0.43%
Currency 103.38 2,018.89 5.12%
Leveraged 690.78 52,263.99 1.32%
Inverse 2,127.25 11,933.55 17.83%
Asset Allocation 607.99 14,156.98 4.29%
Alternatives 1,067.00 6,285.03 16.98%
Total: 145,026.54 5,829,296.34 2.49%

 

Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
JMBS Janus Henderson Mortgage-Backed Securities ETF 0.00% 57,879 692.09
AADR AdvisorShares Dorsey Wright ADR ETF 0.00% 1,979 83.83
ABEQ Absolute Core Strategy ETF 0.00% 62,156 40.60
ACES ALPS Clean Energy ETF 0.00% 153,189 1,020.04
ACIO Aptus Collared Income Opportunity ETF 0.00% 22,745 182.94
ACSI American Customer Satisfaction ETF 0.00% 12,138 72.18
ACTV LeaderShares Activist Leaders ETF 0.00% 3,249 53.02
ACVF American Conservative Values ETF 0.00% 1,159 5.15
ACWF iShares MSCI Global Multifactor ETF 0.00% 9,637 97.59
ACWI iShares MSCI ACWI ETF 0.00% 2,012,281 15,108.62

 

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
CNBS Amplify Seymour Cannabis ETF 81.95% 0.00% 139.41
POTX Global X Cannabis ETF 74.34% 0.00% 228.21
BDRY Breakwave Dry Bulk Shipping ETF 73.25% 0.00% 31.70
THCX The Cannabis ETF 66.72% 0.00% 184.30
MJ ETFMG Alternative Harvest ETF 62.09% 0.00% 1,816.63
YOLO AdvisorShares Pure Cannabis ETF 52.59% 0.00% 441.77
BLOK Amplify Transformational Data Sharing ETF 48.63% 0.00% 1,145.57
TOKE Cambria Cannabis ETF 45.50% 0.00% 37.14
PXE Invesco Dynamic Energy Exploration & Production ETF 42.60% 0.00% 24.02
PSCE Invesco S&P SmallCap Energy ETF 41.91% 0.00% 71.15

 

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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