ETFs Notch Another $24B

Inflation and the threat of a Russia-Ukraine war didn’t shake equity inflows.

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Reviewed by: Dan Mika
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Edited by: Dan Mika

The U.S. ETF industry added just over $24 billion in fresh assets last week, shaking off another year-over-year inflation reading above 7% and continuing tensions in Eastern Europe. 

U.S.-listed ETFs have posted inflows of just under $81.5 billion year-to-date, according to ETF.com data provider FactSet, and manage $6.9 trillion. 

Split Of The S&P 500 Funds Continue 

The largest S&P 500 trackers continued to split. The cheap-beta iShares Core S&P 500 ETF (IVV) led all funds by inflows, with a fresh $5.7 billion in assets, followed by the Vanguard S&P 500 ETF (VOO) at $4.6 billion and a rare large inflow for the SPDR Portfolio S&P 500 ETF (SPLG), of $782.6 million. 

SPLG, which tracks the S&P 500 at a cost of 3 basis points, tends to be overshadowed by its older brother, the SPDR S&P 500 ETF Trust (SPY). However, SPY continued to bleed assets, with a $1.5 billion outflow on the week, and more than $22.3 billion in outflows year-to-date. 

The Invesco QQQ Trust (QQQ) had the largest outflows on the week, losing just over $3.5 billion in assets, as the high inflation print puts more pressure on the Federal Reserve to raise interest rates. 

Defensive Plays Abound 

Risk-off strategies took in billions last week, with the Vanguard Value ETF (VTV) adding $4.7 billion and the Schwab U.S. Dividend Equity ETF (SCHD) adding $1.8 billion. The inflows to those funds suggest some investors are less optimistic that growth stocks will continue to appreciate in value. 

Short-term bonds were also popular, with the Vanguard Short-Term Corporate Bond ETF (VCSH) and the iShares 0-3 Month Treasury Bond ETF (SGOV) adding $1.6 billion and $785 million, respectively. 

However, the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) lost $941.6 million in the period. 

Corporate Bonds, TIPS Sell Off 

The U.S. fixed income class was the only asset class to lose ETF assets on the week, with outflows of $3.9 billion, and corporate bonds took the brunt of the losses. 

The iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) and the iShares iBoxx High Yield Corporate Bond ETF (HYG) lost approximately $4 billion combined as credit spreads widen. The ICE BofA US High Yield Index Option-Adjusted Spread Index has spiked 55 basis points since the start of the year to 3.66%, while its investment-grade counterpart has added 10 points. 

Inflation-protected Treasury funds also appeared among the largest losers for the week, mirroring a January slide for the largest TIPS fund. The Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and the iShares TIPS Bond ETF (TIP) lost a combined $2 billion in the period. 

The combined sell-off is curious. TIP and similar funds with high effective durations were selling off in January due to their exposure to rate-hike risk, but VTIP’s 2.5-year duration is among the lowest in the U.S. 

 

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

 

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
IVV iShares Core S&P 500 ETF 5,738.99 327,704.77 1.75%
VTV Vanguard Value ETF 4,665.42 99,939.43 4.67%
VOO Vanguard S&P 500 ETF 3,242.81 283,556.38 1.14%
SCHD Schwab U.S. Dividend Equity ETF 1,871.98 34,223.73 5.47%
XLF Financial Select Sector SPDR Fund 1,626.08 51,071.29 3.18%
VCSH Vanguard Short-Term Corporate Bond ETF 1,595.28 42,360.70 3.77%
VO Vanguard Mid-Cap ETF 1,357.73 56,194.43 2.42%
SMH VanEck Semiconductor ETF 1,250.85 8,770.74 14.26%
SGOV iShares 0-3 Month Treasury Bond ETF 785.14 1,760.18 44.61%
SPLG SPDR Portfolio S&P 500 ETF 782.59 14,167.36 5.52%

 

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
QQQ Invesco QQQ Trust -3,536.05 187,223.92 -1.89%
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF -2,087.00 32,691.41 -6.38%
HYG iShares iBoxx USD High Yield Corporate Bond ETF -1,918.40 16,588.50 -11.56%
IWM iShares Russell 2000 ETF -1,851.55 59,344.04 -3.12%
SPY SPDR S&P 500 ETF Trust -1,521.11 407,711.38 -0.37%
VTIP Vanguard Short-Term Inflation-Protected Securities ETF -1,227.71 18,553.63 -6.62%
BIL SPDR Bloomberg 1-3 Month T-Bill ETF -941.56 14,560.54 -6.47%
TIP iShares TIPS Bond ETF -791.91 33,672.50 -2.35%
IJJ iShares S&P Mid-Cap 400 Value ETF -790.33 7,819.89 -10.11%
FDN First Trust Dow Jones Internet Index Fund -644.52 7,514.49 -8.58%

 

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 19,088.32 4,180,691.10 0.46%
International Equity 5,406.47 1,309,643.15 0.41%
U.S. Fixed Income -3,939.89 1,061,237.07 -0.37%
International Fixed Income 1,026.03 159,104.89 0.64%
Commodities 1,636.60 146,707.48 1.12%
Currency 156.29 3,265.68 4.79%
Leveraged 347.25 67,197.30 0.52%
Inverse 98.10 14,259.31 0.69%
Asset Allocation 75.06 19,996.24 0.38%
Alternatives 119.79 7,130.13 1.68%
Total: 24,014.03 6,969,232.36 0.34%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 42,567.88 4,180,691.10 1.02%
International Equity 31,221.06 1,309,643.15 2.38%
U.S. Fixed Income -11,102.48 1,061,237.07 -1.05%
International Fixed Income 3,930.13 159,104.89 2.47%
Commodities 6,401.60 146,707.48 4.36%
Currency 136.87 3,265.68 4.19%
Leveraged 5,038.10 67,197.30 7.50%
Inverse 2,574.37 14,259.31 18.05%
Asset Allocation 479.34 19,996.24 2.40%
Alternatives 214.67 7,130.13 3.01%
Total: 81,461.55 6,969,232.36 1.17%

 

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

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
BNGE First Trust S-Network Streaming & Gaming ETF 204.90% 64,095 2.60
BDRY Breakwave Dry Bulk Shipping ETF 16.76% 1,006,057 66.49
POTX Global X Cannabis ETF 11.88% 987,490 89.81
CNBS Amplify Seymour Cannabis ETF 8.13% 248,633 77.07
THCX The Cannabis ETF 7.90% 217,943 64.18
PGJ Invesco Golden Dragon China ETF 7.89% 337,843 223.37
BUDX Cannabis Growth ETF 7.66% 9,058 3.83
MJUS ETFMG U.S. Alternative Harvest ETF 7.39% 35,008 4.54
EPU iShares MSCI Peru ETF 7.30% 289,649 205.85
MJ ETFMG Alternative Harvest ETF 7.29% 6,259,733 745.24

 

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
OIH VanEck Oil Services ETF 27.14% -0.68% 2,715.24
RYE Invesco S&P 500 Equal Weight Energy ETF 23.57% -1.25% 454.89
IEZ iShares U.S. Oil Equipment & Services ETF 23.35% -0.93% 137.63
XLE Energy Select Sector SPDR Fund 23.28% -1.95% 34,864.75
RJN Elements Rogers International Commodity Index-Energy TR ETN 22.73% -0.63% 8.37
JHME John Hancock Multifactor Energy ETF 22.66% -1.43% 26.58
VDE Vanguard Energy ETF 21.76% -1.78% 7,312.77
FENY Fidelity MSCI Energy Index ETF 21.54% -1.91% 1,297.70
XES SPDR S&P Oil & Gas Equipment & Services ETF 21.39% -0.31% 198.90
IXC iShares Global Energy ETF 21.16% -1.27% 1,820.17

 

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.