Muted Weekly ETF Inflows Of $4B

Fears over a diverted (for now) U.S. default left net ETF flows basically flat.

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Reviewed by: Dan Mika
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Edited by: Dan Mika

Angst over whether or not the Senate could come to an agreement over avoiding a first-ever default of the U.S. government left net flows paralyzed for much of the week.

U.S.-listed ETFs generated just more than $4.3 billion in net inflows between Oct. 1 and Oct. 7, according to ETF.com data provider FactSet. The space has gained a net $652.3 billion in assets so far this year, and now has more than $6.64 trillion in assets under management.

International Equities Lead

Senators passed a stopgap increase to the debt ceiling that will keep the federal government from default until early December. The House, which passed a debt ceiling bill of its own in September, is expected to take up the temporary extension early next week and avert a critical shock to the global economy and its recovery from the COVID-19 pandemic.

International equity ETFs led all asset classes on the week with a net inflow of $2.8 billion versus U.S. equities, which brought in $557.8 million, marking a third time in 30 days where international stock ETFs outperformed their domestic U.S. counterparts. The iShares Core MSCI EAFE ETF (IEFA) led ETFs in inflows this week with a gain of $1.4 billion, and is the only international equity ETF to appear in the top 10 gainers.

U.S. broad market funds also saw gains, with the Vanguard S&P 500 ETF (VOO) adding almost $1.1 billion in assets, while the Vanguard Total Stock Market ETF (VTI) and iShares Russell 2000 ETF (IWM) added $630.2 million and $609.2 million, respectively.

At the same time, the SPDR S&P 500 ETF Trust (SPY) lost just over $3.9 billion.

Treasuries Shorten

U.S. fixed income ETFs lost $85.8 million on a particularly mixed week of trading that trended shorter.

The iShares 20+ Year Treasury Bond ETF (TLT) lost $2.1 billion and nearly 14% of its assets to outflows in the period as the spread between 20-year and 30-year Treasury bonds flattened to 5 basis points, with inflation worries weighing down long-term debt.

Leading inflows for bond ETFs was the iShares 1-3 Year Treasury Bond ETF (SHY), with a gain of $1.1 billion, taking advantage of yields that were driven up by the risk of default. However, the Schwab Short-Term U.S. Treasury ETF (SCHO) saw outflows of $363.5 million in the same period.

The two leading corporate debt ETFs both saw outflows on the week, with the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) losing $1.5 billion, while the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) lost almost $479.4 million.

Buying The Tech Dip

Rising bond yields and sell-offs in broad equities left some investors eyeing cheap tech stocks for a quick profit.

That aggressive mentality was on display as the ProShares UltraPro QQQ (TQQQ) took in $839.5 million in net inflows compared to its sister fund, the Invesco QQQ Trust (QQQ), which pulled in $663.2 million.

Retail may be the most likely source of that tech buying. According to estimates of ETF flows by retail traders from VandaTrack, QQQ had net inflows of $1.5 billion in September from self-led accounts versus $854 million in net flows overall.

For a full list of this week’s top inflows and outflows, see the tables below:

 

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IEFAiShares Core MSCI EAFE ETF1,372.2698,576.801.39%
SHYiShares 1-3 Year Treasury Bond ETF1,128.3720,344.635.55%
VOOVanguard S&P 500 ETF1,096.02251,164.390.44%
TQQQProShares UltraPro QQQ839.4815,748.595.33%
IEFiShares 7-10 Year Treasury Bond ETF670.3014,379.034.66%
QQQInvesco QQQ Trust663.22184,117.560.36%
VTIVanguard Total Stock Market ETF630.23266,615.620.24%
IWMiShares Russell 2000 ETF609.2667,638.990.90%
BNDVanguard Total Bond Market ETF538.3782,410.740.65%
XLCCommunication Services Select Sector SPDR Fund527.1715,835.123.33%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust-3,917.48387,508.96-1.01%
TLTiShares 20+ Year Treasury Bond ETF-2,060.8714,735.97-13.99%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF-1,467.6039,235.15-3.74%
XLVHealth Care Select Sector SPDR Fund-992.7529,449.74-3.37%
PDPInvesco DWA Momentum ETF-583.861,775.30-32.89%
XBISPDR S&P Biotech ETF-488.546,532.02-7.48%
JNKSPDR Bloomberg Barclays High Yield Bond ETF-479.478,500.01-5.64%
AGGiShares Core U.S. Aggregate Bond ETF-401.7188,913.49-0.45%
SCHOSchwab Short-Term U.S. Treasury ETF-363.519,138.96-3.98%
XLPConsumer Staples Select Sector SPDR Fund-345.8111,608.85-2.98%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity557.873,919,265.410.01%
International Equity2,839.671,255,313.740.23%
U.S. Fixed Income-85.891,081,759.25-0.01%
International Fixed Income139.45148,512.270.09%
Commodities-20.78135,847.06-0.02%
Currency31.311,922.871.63%
Leveraged869.9663,185.521.38%
Inverse-122.5812,917.82-0.95%
Asset Allocation135.3118,568.350.73%
Alternatives-21.616,751.12-0.32%
Total:4,322.736,644,043.420.07%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity306,996.633,919,265.417.83%
International Equity174,129.391,255,313.7413.87%
U.S. Fixed Income129,437.811,081,759.2511.97%
International Fixed Income28,889.05148,512.2719.45%
Commodities-4,098.70135,847.06-3.02%
Currency49.071,922.872.55%
Leveraged4,356.4463,185.526.89%
Inverse5,566.3212,917.8243.09%
Asset Allocation4,326.1418,568.3523.30%
Alternatives2,658.926,751.1239.38%
Total:652,311.066,644,043.429.82%

 

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
BDRYBreakwave Dry Bulk Shipping ETF12.49%1,382,889134.87
DAPPVanEck Digital Transformation ETF7.47%179,40551.32
BITQBitwise Crypto Industry Innovators ETF6.75%366,85277.69
BALiPath Series B Bloomberg Cotton Subindex Total Return ETN6.30%100,34419.27
BKCHGlobal X Blockchain ETF5.89%305,62450.50
CRPTFirst Trust SkyBridge Crypto Industry and Digital Economy ETF5.39%112,1007.01
SOGUThe Short De-SPAC ETF5.37%14,52120.96
RIGZViridi Cleaner Energy Crypto-Mining & Semiconductor ETF5.34%35,06410.94
EIDOiShares MSCI Indonesia ETF5.21%2,785,688376.39
SGDJSprott Junior Gold Miners ETF5.01%73,420113.90

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
BDRYBreakwave Dry Bulk Shipping ETF439.09%12.49%134.87
UNGUnited States Natural Gas Fund LP114.67%2.44%421.66
GAZiPath Series B Bloomberg Natural Gas Subindex Total Return ETN106.38%1.99%14.52
FCGFirst Trust Natural Gas ETF101.25%1.62%439.92
JJTiPath Series B Bloomberg Tin Subindex Total Return ETN97.33%4.07%15.61
PXEInvesco Dynamic Energy Exploration & Production ETF96.45%1.60%108.60
FRAKVanEck Unconventional Oil & Gas ETF95.32%2.75%18.00
UNLUnited States 12 Month Natural Gas Fund LP 90.50%2.11%17.16
GRNiPath Series B Carbon ETN85.03%-5.05%83.92
PXIInvesco DWA Energy Momentum ETF83.72%1.07%78.49

 

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.

Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.