ETFs Gain $8B On Volatile Week

January 31, 2022

U.S.-listed ETFs gained just over $8.1 billion in new assets last week despite a confluence of inflation, geopolitical tensions and a Fed that isn’t ruling out a half-point rate hike this year.

The U.S. ETF industry has seen $38.6 billion in inflows year-to-date, according to ETF.com data provider FactSet, and now manages more than $6.7 trillion in assets.

Major Market ETFs Diverge

U.S. equities took in a net $1.6 billion in new assets on the week despite a split in flows between some of the ETFs that turned 2021 into a record-breaking year for inflows.

The Vanguard S&P 500 ETF (VOO) led all ETFs, with $3.9 billion in new assets, while the iShares Core S&P 500 ETF (IVV) and the iShares Russell 2000 ETF (IWM) gained $2.7 billion and $2.3 billion, respectively. The Vanguard Total Stock Market ETF (VTI) added $1.3 billion in the week.

Those funds may have benefited from dip-buyers looking to add to the core of their portfolios, while the broad-market funds prized for their intraday liquidity struggled.

The SPDR S&P 500 ETF Trust (SPY) lost $7.8 billion on the week, followed by the Invesco QQQ Trust (QQQ), which had an outflow of just under $3.6 billion.

Day traders took contrarian positions on the prospects for the tech industry, adding just over $1 billion into the triple-leveraged ProShares UltraPro QQQ (TQQQ) for a higher-risk, higher-return bet on some of the largest companies in the world. QQQ finished higher on Monday and Friday last week.

The IShares MSCI Kokusai ETF (TOK) was second among all ETFs in new assets, with more than $3.7 billion on the week. However, all of that came on Wednesday alone, after weeks of little to no flow activity. The massive single-day amount suggests that it is the first leg of a heartbeat trade designed to avoid capital gains taxes.

US Bonds Retreat While TIPS Split

U.S. fixed income ETFs had the largest outflows among the asset classes last week, with nearly $3 billion pulled from the sector.

The SPDR Portfolio Long Term Treasury ETF (SPTL) led fixed income ETFs on the week, taking in $902.5 million as traders loaded onto the flattening long end of the Treasury curve.

The only other bond ETF on the top 10 gainers list was the Schwab U.S. TIPS ETF (SCHP) with $882 million, although a $515.8 million outflow from the iShares TIPS Bond ETF (TIP) muddied the narrative of investors clamoring for inflation-protected bonds.

High yield bond ETFs also struggled, as a potential double-whammy of inflation and the Federal Reserve’s hawkish turn toward cutting down its balance sheet sent investors fleeing. The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) lost $761 million in assets, while the SPDR Bloomberg High Yield Bond ETF (JNK) decreased by $701 million.

 

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
VOO Vanguard S&P 500 ETF 3,960.47 258,308.90 1.53%
TOK iShares MSCI Kokusai ETF 3,667.25 3,822.75 95.93%
IVV iShares Core S&P 500 ETF 2,747.99 304,748.30 0.90%
IWM iShares Russell 2000 ETF 2,304.23 59,235.31 3.89%
SDY SPDR S&P Dividend ETF 1,546.28 21,737.55 7.11%
VTI Vanguard Total Stock Market ETF 1,339.66 272,093.22 0.49%
TQQQ ProShares UltraPro QQQ 1,006.08 15,824.10 6.36%
SPTL SPDR Portfolio Long Term Treasury ETF 902.51 5,639.82 16.00%
SCHP Schwab U.S. TIPS ETF 882.05 21,654.94 4.07%
XLE Energy Select Sector SPDR Fund 860.82 33,959.35 2.53%

 

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 ETF Trust -7,802.55 397,875.61 -1.96%
QQQ Invesco QQQ Trust -3,576.60 177,826.97 -2.01%
VLUE iShares MSCI USA Value Factor ETF -1,358.37 13,996.00 -9.71%
VGT Vanguard Information Technology ETF -908.26 47,539.65 -1.91%
HYG iShares iBoxx USD High Yield Corporate Bond ETF -761.10 17,460.57 -4.36%
JNK SPDR Bloomberg High Yield Bond ETF -701.19 8,541.68 -8.21%
VCR Vanguard Consumer Discretionary ETF -542.30 5,900.17 -9.19%
XLY Consumer Discretionary Select Sector SPDR Fund -517.82 19,362.43 -2.67%
TIP iShares TIPS Bond ETF -515.83 36,594.44 -1.41%
AGG iShares Core U.S. Aggregate Bond ETF -504.25 89,883.96 -0.56%

 

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 1,605.88 3,970,912.48 0.04%
International Equity 8,166.54 1,249,211.05 0.65%
U.S. Fixed Income -2,950.09 1,081,571.05 -0.27%
International Fixed Income -124.66 159,675.47 -0.08%
Commodities 855.08 141,982.43 0.60%
Currency -5.58 2,922.34 -0.19%
Leveraged 958.33 60,364.03 1.59%
Inverse -355.22 13,536.20 -2.62%
Asset Allocation 41.06 19,767.84 0.21%
Alternatives -64.18 7,180.35 -0.89%
Total: 8,127.16 6,707,123.24 0.12%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 9,292.76 3,970,912.48 0.23%
International Equity 24,123.46 1,249,211.05 1.93%
U.S. Fixed Income -7,594.34 1,081,571.05 -0.70%
International Fixed Income 2,287.37 159,675.47 1.43%
Commodities 4,257.62 141,982.43 3.00%
Currency -28.83 2,922.34 -0.99%
Leveraged 4,634.37 60,364.03 7.68%
Inverse 1,135.55 13,536.20 8.39%
Asset Allocation 380.05 19,767.84 1.92%
Alternatives 133.18 7,180.35 1.85%
Total: 38,621.20 6,707,123.24 0.58%

 

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

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
PALL Aberdeen Standard Physical Palladium Shares ETF 9.18% 342,497 386.81
SPAX Robinson Alternative Yield Pre-Merger SPAC ETF 8.83% 10,075 19.38
SARK Tuttle Capital Short Innovation ETF 5.95% 13,125,951 312.47
OIH VanEck Oil Services ETF 5.91% 4,541,907 2,556.86
GRN iPath Series B Carbon ETN 5.59% 373,432 156.04
RJN Elements Rogers International Commodity Index-Energy TR ETN 5.15% 415,957 7.65
IEZ iShares U.S. Oil Equipment & Services ETF 5.05% 1,539,421 125.88
UNG United States Natural Gas Fund LP 4.95% 19,721,999 407.47
EWZS iShares MSCI Brazil Small-Cap ETF 4.95% 222,527 108.34
XES SPDR S&P Oil & Gas Equipment & Services ETF 4.95% 494,608 158.07

 

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
SOGU The Short De-SPAC ETF 36.04% 3.43% 35.09
SARK Tuttle Capital Short Innovation ETF 33.23% 5.95% 312.47
VXX iPath Series B S&P 500 VIX Short Term Futures ETN 31.25% 2.53% 933.79
VIXY ProShares VIX Short-Term Futures ETF 30.78% 2.43% 388.82
OIH VanEck Oil Services ETF 24.66% 5.91% 2,556.86
MLPO Credit Suisse S&P MLP Index ETN 23.46% 0.00% 25.15
PALL Aberdeen Standard Physical Palladium Shares ETF 23.24% 9.18% 386.81
IEZ iShares U.S. Oil Equipment & Services ETF 22.73% 5.05% 125.88
NORW Global X MSCI Norway ETF 21.00% 1.06% 72.11
XES SPDR S&P Oil & Gas Equipment & Services ETF 20.51% 4.95% 158.07

 

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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