Muted Weekly ETF Inflows Of $4B

October 08, 2021

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)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
IEFA iShares Core MSCI EAFE ETF 1,372.26 98,576.80 1.39%
SHY iShares 1-3 Year Treasury Bond ETF 1,128.37 20,344.63 5.55%
VOO Vanguard S&P 500 ETF 1,096.02 251,164.39 0.44%
TQQQ ProShares UltraPro QQQ 839.48 15,748.59 5.33%
IEF iShares 7-10 Year Treasury Bond ETF 670.30 14,379.03 4.66%
QQQ Invesco QQQ Trust 663.22 184,117.56 0.36%
VTI Vanguard Total Stock Market ETF 630.23 266,615.62 0.24%
IWM iShares Russell 2000 ETF 609.26 67,638.99 0.90%
BND Vanguard Total Bond Market ETF 538.37 82,410.74 0.65%
XLC Communication Services Select Sector SPDR Fund 527.17 15,835.12 3.33%

 

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -3,917.48 387,508.96 -1.01%
TLT iShares 20+ Year Treasury Bond ETF -2,060.87 14,735.97 -13.99%
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF -1,467.60 39,235.15 -3.74%
XLV Health Care Select Sector SPDR Fund -992.75 29,449.74 -3.37%
PDP Invesco DWA Momentum ETF -583.86 1,775.30 -32.89%
XBI SPDR S&P Biotech ETF -488.54 6,532.02 -7.48%
JNK SPDR Bloomberg Barclays High Yield Bond ETF -479.47 8,500.01 -5.64%
AGG iShares Core U.S. Aggregate Bond ETF -401.71 88,913.49 -0.45%
SCHO Schwab Short-Term U.S. Treasury ETF -363.51 9,138.96 -3.98%
XLP Consumer Staples Select Sector SPDR Fund -345.81 11,608.85 -2.98%

 

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 557.87 3,919,265.41 0.01%
International Equity 2,839.67 1,255,313.74 0.23%
U.S. Fixed Income -85.89 1,081,759.25 -0.01%
International Fixed Income 139.45 148,512.27 0.09%
Commodities -20.78 135,847.06 -0.02%
Currency 31.31 1,922.87 1.63%
Leveraged 869.96 63,185.52 1.38%
Inverse -122.58 12,917.82 -0.95%
Asset Allocation 135.31 18,568.35 0.73%
Alternatives -21.61 6,751.12 -0.32%
Total: 4,322.73 6,644,043.42 0.07%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 306,996.63 3,919,265.41 7.83%
International Equity 174,129.39 1,255,313.74 13.87%
U.S. Fixed Income 129,437.81 1,081,759.25 11.97%
International Fixed Income 28,889.05 148,512.27 19.45%
Commodities -4,098.70 135,847.06 -3.02%
Currency 49.07 1,922.87 2.55%
Leveraged 4,356.44 63,185.52 6.89%
Inverse 5,566.32 12,917.82 43.09%
Asset Allocation 4,326.14 18,568.35 23.30%
Alternatives 2,658.92 6,751.12 39.38%
Total: 652,311.06 6,644,043.42 9.82%

 

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

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
BDRY Breakwave Dry Bulk Shipping ETF 12.49% 1,382,889 134.87
DAPP VanEck Digital Transformation ETF 7.47% 179,405 51.32
BITQ Bitwise Crypto Industry Innovators ETF 6.75% 366,852 77.69
BAL iPath Series B Bloomberg Cotton Subindex Total Return ETN 6.30% 100,344 19.27
BKCH Global X Blockchain ETF 5.89% 305,624 50.50
CRPT First Trust SkyBridge Crypto Industry and Digital Economy ETF 5.39% 112,100 7.01
SOGU The Short De-SPAC ETF 5.37% 14,521 20.96
RIGZ Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF 5.34% 35,064 10.94
EIDO iShares MSCI Indonesia ETF 5.21% 2,785,688 376.39
SGDJ Sprott Junior Gold Miners ETF 5.01% 73,420 113.90

 

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
BDRY Breakwave Dry Bulk Shipping ETF 439.09% 12.49% 134.87
UNG United States Natural Gas Fund LP 114.67% 2.44% 421.66
GAZ iPath Series B Bloomberg Natural Gas Subindex Total Return ETN 106.38% 1.99% 14.52
FCG First Trust Natural Gas ETF 101.25% 1.62% 439.92
JJT iPath Series B Bloomberg Tin Subindex Total Return ETN 97.33% 4.07% 15.61
PXE Invesco Dynamic Energy Exploration & Production ETF 96.45% 1.60% 108.60
FRAK VanEck Unconventional Oil & Gas ETF 95.32% 2.75% 18.00
UNL United States 12 Month Natural Gas Fund LP 90.50% 2.11% 17.16
GRN iPath Series B Carbon ETN 85.03% -5.05% 83.92
PXI Invesco DWA Energy Momentum ETF 83.72% 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.

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