ETF Flows Slow As Stocks Peak

June 25, 2021

Investors slowed their piling into ETFs in the past week, putting in a little less than a net $12.15 billion into funds after adding a gargantuan $38 billion last week, according to ETF.com data provider FactSet.

Despite the week-over-week drop, the flows into U.S.-listed ETFs between June 18 and June 24 this year are 228% higher than the net flows of $3.7 billion recorded during the same period last year after a national resurgence of COVID-19 spooked investors to take $5.8 billion out of equity ETFs.

Approximately $6.47 trillion in assets is currently held in U.S. ETFs, compared to $4.33 trillion during the same time last year. Nearly $468 billion has flowed into ETFs this year, amounting to more than 7% of all the assets under management.

Heartbeat Trades Slow US Equities

The net inflow into U.S. equities dropped considerably week-over-week, from $27.3 million last week to $5.8 billion in the most recent period.

It’s possible the drop was due to heartbeat trades—trades designed to minimize tax liability during fund rebalancing that tend to occur at the end of a month.

Take the Vanguard Growth Fund (VUG), which led all ETFs, with net inflows of $2.83 billion last week and led outflows with $2.51 billion in the most recent period, leaving the fund with approximately $315 million in growth over the two weeks.

The redemptions didn’t hit evenly across every fund, though. The Vanguard Total Stock Market ETF (VTI) posted inflows of $2.52 billion last week and saw outflows of $821.88 million this week, leaving it a net $1.7 billion larger.

Russell Indexed-Funds Lead

Despite the net drop in inflows, ETFs tracking Russell indexes continued to charge forward as the S&P 500 and Nasdaq Composite reached new highs this week, with traders shaking off the Federal Reserve’s hawkish signaling last week.

The fund posting the highest inflows during the week was the iShares Russell 1000 Growth ETF (IWF), with a $6.77 billion net gain. Other Russell index gainers included:

 

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
IWF iShares Russell 1000 Growth ETF 6,773.83 74,568.63 9.08%
SPY SPDR S&P 500 ETF Trust 4,758.14 366,491.08 1.30%
IWP iShares Russell Mid-Cap Growth ETF 2,322.90 17,825.62 13.03%
IWN iShares Russell 2000 Value ETF 1,923.74 18,999.05 10.13%
IWD iShares Russell 1000 Value ETF 1,650.96 55,005.79 3.00%
QQQ Invesco QQQ Trust 1,617.27 170,813.90 0.95%
VONG Vanguard Russell 1000 Growth ETF 856.17 7,406.36 11.56%
IWR iShares Russell Mid-Cap ETF 796.49 30,109.55 2.65%
IYR iShares U.S. Real Estate ETF 745.55 7,388.48 10.09%
ARKK ARK Innovation ETF 714.11 23,752.92 3.01%

 

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
VUG Vanguard Growth ETF -2,511.82 77,698.77 -3.23%
XLF Financial Select Sector SPDR Fund -2,262.34 40,759.86 -5.55%
VO Vanguard Mid-Cap ETF -1,492.19 49,441.83 -3.02%
VB Vanguard Small-Cap ETF -1,168.24 46,769.44 -2.50%
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF -1,010.48 39,514.37 -2.56%
VTV Vanguard Value ETF -954.50 81,293.44 -1.17%
RSP Invesco S&P 500 Equal Weight ETF -909.10 28,315.25 -3.21%
SPHQ Invesco S&P 500 Quality ETF -838.91 2,892.20 -29.01%
VTI Vanguard Total Stock Market ETF -821.88 249,765.97 -0.33%
KOMP SPDR S&P Kensho New Economies Composite ETF -735.63 2,106.26 -34.93%

 

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 5,808.25 3,777,534.34 0.15%
International Equity 1,961.95 1,276,077.89 0.15%
U.S. Fixed Income 3,826.55 1,035,262.73 0.37%
International Fixed Income 288.50 141,642.37 0.20%
Commodities -323.82 141,815.15 -0.23%
Currency 35.79 1,923.89 1.86%
Leveraged 272.68 58,817.73 0.46%
Inverse 85.31 11,935.91 0.71%
Asset Allocation 61.80 16,163.36 0.38%
Alternatives 131.31 6,444.52 2.04%
Total: 12,148.30 6,467,617.88 0.19%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 224,629.58 3,777,534.34 5.95%
International Equity 135,475.54 1,276,077.89 10.62%
U.S. Fixed Income 79,280.01 1,035,262.73 7.66%
International Fixed Income 20,331.37 141,642.37 14.35%
Commodities -502.37 141,815.15 -0.35%
Currency 32.24 1,923.89 1.68%
Leveraged 677.59 58,817.73 1.15%
Inverse 3,875.11 11,935.91 32.47%
Asset Allocation 1,983.59 16,163.36 12.27%
Alternatives 2,133.37 6,444.52 33.10%
Total: 467,916.02 6,467,617.88 7.23%

 

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
BDRY Breakwave Dry Bulk Shipping ETF 262.08% 2.99% 103.22
ILCV iShares Morningstar Value ETF 129.48% 1.66% 714.11
PSCE Invesco S&P SmallCap Energy ETF 86.04% 7.41% 217.42
FCG First Trust Natural Gas ETF 84.43% 7.28% 293.70
PXE Invesco Dynamic Energy Exploration & Production ETF 83.38% 7.14% 92.51
PXI Invesco DWA Energy Momentum ETF 76.28% 6.91% 211.37
FRAK VanEck Vectors Unconventional Oil & Gas ETF 72.83% 6.99% 19.16
MLPO Credit Suisse S&P MLP Index ETN 69.79% 14.51% 24.99
GRN iPath Series B Carbon ETN 67.54% 4.89% 58.08
XOP SPDR S&P Oil & Gas Exploration & Production ETF 67.20% 7.00% 4,445.68

 

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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