Weekly ETF Inflows Eke Out Gains

August 06, 2021

Inflows into U.S.-based ETFs slowed by a little more than three-quarters week over week, led primarily by a major slowdown in U.S. equities.

Data from ETF.com provider FactSet showed the U.S. ETF industry saw inflows of $5.54 billion between July 30 and August 5, compared to approximately $23.5 billion in the preceding period. Net inflows have reached $525.9 billion year-to-date.

XLF, Junk Bonds Drop

Inflows fell across most of the asset classes between this week and last, but no drop was more pronounced than in U.S. equities. The class that has mainly driven this year’s record-breaking bull run into ETFs dropped from roughly $10.5 billion in inflows last week to just $622 million this week.

The SPDR S&P 500 ETF Trust (SPY) led outflows with $1.7 billion in the period during a week where the S&P 500 slipped early in the week before recovering to almost flat as of the close on Thursday.

Investors also exited positions on the Financial Select Sector SPDR Fund (XLF) to the tune of $1.3 billion, and took out a combined $1.8 billion from the corporate junk bond funds SPDR S&P Dividend ETF (SDY) and iShares iBoxx USD High-Yield Corporate Bond ETF (HYG).

It’s difficult to pin the movements of fund flows to one single event, especially as XLF’s average daily volume makes it useful as a short-term tactical play. However, it’s likely that the flattening yield curve spooked some investors out of those ETFs.

Bonds Lead Inflows

While the U.S. fixed income sector slowed by approximately $2.3 billion week-over-week, bond ETFs were the most prevalent in inflows during the week.

The Vanguard Short-Term Bond ETF (BSV) was tops, pulling in just under $1.3 billion, while the iShares 7-10 Year Treasury Bond ETF (IEF) followed, with nearly $1.2 billion in inflows. The iShares TIPS Bond ETF (TIP) and iShares 20+ Year Treasury Bond ETF (VTI) also appeared in the week’s top 10 funds with a combined $1.5 billion.

KWEB: A YOLO Trade?

Finally, the KraneShares CSI China Internet ETF (KWEB) appeared on the top 10 inflows list with roughly $5.7 billion coming into the fund.

Financial news-watchers may be scratching their heads at those flows, considering the fund has posted losses of 26% in the past 30 days after a string of tech crackdowns from Beijing.

In the past several weeks, Chinese officials have levied a $3 billion fine against e-commerce juggernaut Alibaba Group, ordered security reviews on ridesharing app developer Didi after its U.S. listing, and raised broader questions about the government’s involvement in the private sector there.

It appears retail traders drove a “buy the dip” strategy in late June, with volumes peaking above 20 million shares daily before coming down to around 5 million or so per day this 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
BSV Vanguard Short-Term Bond ETF 1,259.46 40,763.14 3.09%
IEF iShares 7-10 Year Treasury Bond ETF 1,180.72 14,940.16 7.90%
VOO Vanguard S&P 500 ETF 1,088.96 244,778.73 0.44%
TIP iShares TIPS Bond ETF 791.36 32,090.40 2.47%
VTI Vanguard Total Stock Market ETF 722.18 261,175.62 0.28%
TLT iShares 20+ Year Treasury Bond ETF 693.51 17,471.17 3.97%
XLU Utilities Select Sector SPDR Fund 577.04 12,882.05 4.48%
KWEB KraneShares CSI China Internet ETF 556.12 5,265.12 10.56%
IXUS iShares Core MSCI Total International Stock ETF 430.18 30,562.42 1.41%
IWF iShares Russell 1000 Growth ETF 365.82 73,021.63 0.50%

 

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -1,710.57 380,875.11 -0.45%
XLF Financial Select Sector SPDR Fund -1,333.92 38,677.81 -3.45%
SDY SPDR S&P Dividend ETF -985.13 19,498.24 -5.05%
HYG iShares iBoxx USD High Yield Corporate Bond ETF -847.99 19,030.40 -4.46%
QQQ Invesco QQQ Trust -741.68 183,113.66 -0.41%
SPYD SPDR Portfolio S&P 500 High Dividend ETF -503.57 4,628.67 -10.88%
SPHD Invesco S&P 500 High Dividend Low Volatility ETF -491.51 2,988.04 -16.45%
SOXL Direxion Daily Semiconductor Bull 3X Shares -488.78 4,068.18 -12.01%
IVV iShares Core S&P 500 ETF -463.80 295,383.14 -0.16%
SCHO Schwab Short-Term U.S. Treasury ETF -392.36 9,012.46 -4.35%

 

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 622.66 3,885,641.23 0.02%
International Equity 2,365.33 1,290,212.93 0.18%
U.S. Fixed Income 2,868.60 1,066,204.74 0.27%
International Fixed Income 517.44 147,696.79 0.35%
Commodities -104.11 142,626.56 -0.07%
Currency 5.18 1,980.76 0.26%
Leveraged -1,173.12 61,485.24 -1.91%
Inverse 270.51 11,701.40 2.31%
Asset Allocation 97.48 17,420.83 0.56%
Alternatives 70.41 6,492.33 1.08%
Total: 5,540.38 6,631,462.82 0.08%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 238,883.58 3,885,641.23 6.15%
International Equity 153,361.50 1,290,212.93 11.89%
U.S. Fixed Income 100,368.39 1,066,204.74 9.41%
International Fixed Income 25,281.60 147,696.79 17.12%
Commodities -1,495.43 142,626.56 -1.05%
Currency 95.27 1,980.76 4.81%
Leveraged -246.17 61,485.24 -0.40%
Inverse 4,523.96 11,701.40 38.66%
Asset Allocation 2,981.74 17,420.83 17.12%
Alternatives 2,151.63 6,492.33 33.14%
Total: 525,906.07 6,631,462.82 7.93%

 

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

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
GERM ETFMG Treatments Testing and Advancements ETF 8.28% 88,498 61.84
CHB Global X China Biotech Innovation ETF 6.38% 5,232 6.57
GAZ iPath Series B Bloomberg Natural Gas Subindex Total Return ETN 6.02% 13,613 6.45
UNG United States Natural Gas Fund LP 5.89% 7,894,986 286.94
RIGZ Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF 5.71% 57,659 4.77
CHIH Global X MSCI China Health Care ETF 5.44% 40,247 19.94
BDRY Breakwave Dry Bulk Shipping ETF 5.39% 517,164 88.79
HELX Franklin Genomic Advancements ETF 5.30% 18,253 22.36
BBH VanEck Vectors Biotech ETF 5.13% 75,634 618.50
DAPP VanEck Vectors Digital Transformation ETF 5.04% 84,889 33.92

 

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
BDRY Breakwave Dry Bulk Shipping ETF 253.12% 5.39% 88.79
ILCV iShares Morningstar Value ETF 134.10% -0.24% 741.36
JJT iPath Series B Bloomberg Tin Subindex Total Return ETN 91.24% -0.58% 15.27
GRN iPath Series B Carbon ETN 71.52% 4.22% 67.44
REMX VanEck Vectors Rare Earth/Strategic Metals ETF 68.47% 1.98% 965.21
MLPO Credit Suisse S&P MLP Index ETN 65.37% 8.88% 22.36
UNG United States Natural Gas Fund LP 58.37% 5.89% 286.94
FCG First Trust Natural Gas ETF 53.98% -4.39% 238.36
GAZ iPath Series B Bloomberg Natural Gas Subindex Total Return ETN 53.81% 6.02% 6.45
PXE Invesco Dynamic Energy Exploration & Production ETF 52.19% -4.00% 75.42

 

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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