ETF Inflows Continue Amid S&P 500 Losing Streak

September 10, 2021

The relentless climb in U.S. stocks took a breather this week, but investors kept adding money to their ETF holdings. The weekly inflows were modest—$458 million into U.S. equity ETFs and $5.7 billion into U.S.-listed ETFs overall—but enough to push the year-to-date haul further over $600 billion.

On net, investors have added $607.7 billion to U.S.-listed ETFs since the start of the year.

Of this week’s inflows, the majority went into international equity ETFs—$2.5 billion. That was followed by the $2 billion that went into U.S. fixed income ETFs and the aforementioned $458 million into U.S. equity ETFs.

Selling Streak

U.S. stocks experienced a rare streak of selling over the past week. Stocks fell in four-straight sessions between last Friday and this Thursday. Markets were closed on Monday for the Labor Day holiday.

As of this writing, Friday was shaping up to be a down day too, but even after multiple days in the red, the S&P 500 is only down 1% from its all-time high.

Overall sentiment remains optimistic despite the ongoing COVID-19 pandemic and expectations that the Federal Reserve may begin tapering its bond buying program later this year.

Speaking of bonds, the U.S. 10-year Treasury yield hovered in place over the past week and was last seen at 1.34%. That leaves it well off the 1.74% high from March and up modestly from the 1.17% low from August.

KWEB Adds To Haul

In terms of individual ETF flows, the iShares U.S. Real Estate ETF (IYR), the SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV) topped the weekly inflows list, with creations of $1 billion or more each.

The KraneShares CSI China Internet ETF (KWEB) also made an appearance on the list, with inflows of $674 million. KWEB has been an absolute hit with bargain-hunting investors this year, raking in $6 billion in inflows since the start of the year.

Prices for the fund are another matter; year-to-date, the ETF is down almost 32% amid the crackdown on internet firms by the Chinese government.

Top Outflows

Meanwhile, on the outflows side of the ledger, the Invesco QQQ Trust (QQQ), the Financial Select Sector SPDR Fund (XLF) and the Technology Select Sector SPDR Fund (XLK) saw the largest redemptions during the week—$950 million or more.

The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) was another loser, with outflows of almost $800 million. Though up from their lows of July, high yield bond spreads remain historically tight, with investors asking for relatively little yield in exchange for the risk of investing in lower quality corporate bonds.

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
IYR iShares U.S. Real Estate ETF 1,626.93 7,740.86 21.02%
SPY SPDR S&P 500 ETF Trust 1,454.49 402,502.48 0.36%
IVV iShares Core S&P 500 ETF 999.28 306,344.40 0.33%
KWEB KraneShares CSI China Internet ETF 674.17 8,095.64 8.33%
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF 431.35 42,635.01 1.01%
VXUS Vanguard Total International Stock ETF 390.45 51,856.07 0.75%
JPST JPMorgan Ultra-Short Income ETF 337.02 18,068.45 1.87%
GOVT iShares U.S. Treasury Bond ETF 331.56 15,757.75 2.10%
BND Vanguard Total Bond Market ETF 327.66 81,863.48 0.40%
SPYG SPDR Portfolio S&P 500 Growth ETF 293.70 14,619.52 2.01%

 

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
QQQ Invesco QQQ Trust -1,660.49 195,082.31 -0.85%
XLF Financial Select Sector SPDR Fund -1,515.43 40,968.48 -3.70%
XLK Technology Select Sector SPDR Fund -954.83 45,756.95 -2.09%
HYG iShares iBoxx USD High Yield Corporate Bond ETF -798.70 19,221.50 -4.16%
XLI Industrial Select Sector SPDR Fund -786.35 18,016.52 -4.36%
QUAL iShares MSCI USA Quality Factor ETF -483.02 24,957.55 -1.94%
XLB Materials Select Sector SPDR Fund -451.70 7,925.79 -5.70%
ARKK ARK Innovation ETF -369.87 21,820.50 -1.70%
IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF -369.33 25,009.72 -1.48%
XBI SPDR S&P Biotech ETF -264.25 7,306.17 -3.62%

 

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 457.99 4,029,223.25 0.01%
International Equity 2,450.83 1,315,871.27 0.19%
U.S. Fixed Income 1,998.38 1,078,599.73 0.19%
International Fixed Income 539.16 150,160.83 0.36%
Commodities -42.98 137,701.97 -0.03%
Currency -9.41 1,904.53 -0.49%
Leveraged -61.27 63,921.28 -0.10%
Inverse 223.36 12,218.14 1.83%
Asset Allocation 200.34 18,542.36 1.08%
Alternatives -39.56 6,706.50 -0.59%
Total: 5,716.84 6,814,849.86 0.08%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 288,933.34 4,029,223.25 7.17%
International Equity 165,050.23 1,315,871.27 12.54%
U.S. Fixed Income 117,644.62 1,078,599.73 10.91%
International Fixed Income 28,349.15 150,160.83 18.88%
Commodities -3,466.56 137,701.97 -2.52%
Currency 25.99 1,904.53 1.36%
Leveraged -676.03 63,921.28 -1.06%
Inverse 5,462.40 12,218.14 44.71%
Asset Allocation 3,780.14 18,542.36 20.39%
Alternatives 2,558.78 6,706.50 38.15%
Total: 607,662.06 6,814,849.86 8.92%

 

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

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
CHB Global X China Biotech Innovation ETF 4.74% 2,053 5.94
GAZ iPath Series B Bloomberg Natural Gas Subindex Total Return ETN 4.66% 28,184 6.62
UNG United States Natural Gas Fund LP 4.63% 16,300,552 287.86
CHIE Global X MSCI China Energy ETF 4.53% 32,213 3.91
UNL United States 12 Month Natural Gas Fund LP 3.62% 50,149 12.91
URNM North Shore Global Uranium Mining ETF 3.62% 1,284,600 502.98
CHIM Global X MSCI China Materials ETF 3.40% 13,154 6.69
FCA First Trust China AlphaDEX Fund 3.17% 1,330 11.56
CHIC Global X MSCI China Communication Services ETF 3.16% 9,208 13.21
ASHS Xtrackers Harvest CSI 500 China-A Shares Small Cap ETF 3.06% 42,577 40.52

 

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
BDRY Breakwave Dry Bulk Shipping ETF 259.35% 1.13% 83.76
GRN iPath Series B Carbon ETN 94.56% 1.67% 80.83
UNG United States Natural Gas Fund LP 86.74% 4.63% 287.86
URNM North Shore Global Uranium Mining ETF 81.03% 3.62% 502.98
GAZ iPath Series B Bloomberg Natural Gas Subindex Total Return ETN 80.27% 4.66% 6.62
JJT iPath Series B Bloomberg Tin Subindex Total Return ETN 77.82% -3.08% 13.88
REMX VanEck Rare Earth/Strategic Metals ETF 72.56% -0.46% 1,030.84
UNL United States 12 Month Natural Gas Fund LP 69.57% 3.62% 12.91
KRBN KraneShares Global Carbon ETF 65.73% 0.77% 798.20
FCG First Trust Natural Gas ETF 63.44% -1.31% 244.99

 

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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