ETFs Gain $9.5B In Risk-Off Week

February 22, 2022

Heightening tensions between Russia and the West over Ukraine piled onto inflation and Federal Reserve rate hikes, giving investors reason to put only $9.5 billion into U.S.-listed ETFs last week versus $24 billion the week prior. 

The U.S. ETF industry has now gained just over $91 billion in new assets this year, according to ETF.com data provider FactSet, and holds $6.8 trillion in assets under management. 

Heading Into Bond Safe Havens 

Although the iShares Russell 2000 ETF (IWM) and the Invesco QQQ Trust (QQQ) led inflows on the week, with a respective $1.6 billion and $1.5 billion, most of the largest-inflow ETFs on the week were in U.S. fixed income. That asset class added a net $2.95 billion in the period compared to net outflows of $3.94 billion last week. 

The Vanguard Intermediate-Term Corporate Bond (VCIT) led fixed income funds, with $1.1 billion on the week, followed by the Vanguard International Bond ETF (BNDX) and the Vanguard Short-Term Treasury Index ETF (VGSH) at $751 million and just under $700 million, respectively.  

The iShares 20+ Year Treasury Bond ETF (TLT) and the SPDR Bloomberg High Yield Bond ETF (JNK) also appeared in the top 10 list, with $548 million and $536 million, respectively, suggesting demand for fixed income safety ranging from Treasuries to riskier corporate bonds. 

One notable inflow on the week was a $624 million inflow for the iShares Paris-Aligned Climate MSCI USA ETF (PABU), the latest ESG fund from BlackRock, which debuted on Feb. 8. All of those assets came last Thursday, but it’s not clear if the inflow is the first leg of a heartbeat trade or an allocation from BlackRock itself. The firm declined to comment.

Broad Selloffs In Equities 

The U.S. equities asset class generally dominates inflows but only managed to add a meager $2.6 billion last week. 

Notably, international equities saw a $3.7 billion outflow from the iShares MSCI Kokusai ETF (TOK). The ex-Japan international equity fund barely registers flows on a daily basis but had a massive $3.7 billion inflow in January that was later withdrawn in two tranches in what appears to be a wash trade last week. 

 

The far more liquid SPDR S&P 500 ETF Trust (SPY) saw the second-largest outflows, with $2.3 billion pulled, marking more than $25 billion in withdrawals year-to-date. 

Losses were scattered across strategies for other equity ETFs on the week. The Vanguard Mid-Cap ETF (VO) and the Vanguard Mid-Cap Growth ETF (VOT) lost $991 million and $357 million, respectively, while the sector-specific Financial Select Sector SPDR Fund (XLF) and the Vanguard Information Technology ETF (VGT) lost $986 million and $720 million, respectively. 

Three fixed income ETFs also dotted the lower end of the biggest outflows list, with the iShares JP Morgan USD Emerging Markets Bond ETF (EMB) losing $503 million due to its 3.3% weighting to Russian debt. 

The Vanguard Intermediate-Term Treasury Index ETF (VGIT) and the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) lost $386 million and $365 million, respectively. 
 

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
IWM iShares Russell 2000 ETF 1,689.10 60,384.67 2.80%
QQQ Invesco QQQ Trust 1,507.91 181,973.99 0.83%
VCIT Vanguard Intermediate-Term Corporate Bond ETF 1,081.66 46,426.02 2.33%
BNDX Vanguard Total International Bond ETF 751.30 46,402.99 1.62%
VGSH Vanguard Short-Term Treasury Index ETF 699.39 13,649.48 5.12%
IEF iShares 7-10 Year Treasury Bond ETF 641.24 16,655.30 3.85%
PABU iShares Paris-Aligned Climate MSCI USA ETF 624.07 613.23 101.77%
TLT iShares 20+ Year Treasury Bond ETF 548.06 15,359.27 3.57%
JNK SPDR Bloomberg High Yield Bond ETF 536.31 7,674.67 6.99%
VWO Vanguard FTSE Emerging Markets ETF 498.67 83,381.58 0.60%

 

Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
TOK iShares MSCI Kokusai ETF -3,755.88 184.69 -2,033.64%
SPY SPDR S&P 500 ETF Trust -2,324.26 394,409.41 -0.59%
VO Vanguard Mid-Cap ETF -991.11 53,607.89 -1.85%
XLF Financial Select Sector SPDR Fund -985.85 48,285.07 -2.04%
VGT Vanguard Information Technology ETF -719.90 48,270.02 -1.49%
ESGU iShares ESG Aware MSCI USA ETF -547.58 23,630.17 -2.32%
EMB iShares JP Morgan USD Emerging Markets Bond ETF -503.58 17,053.62 -2.95%
VGIT Vanguard Intermediate-Term Treasury Index ETF -386.20 8,693.18 -4.44%
BIL SPDR Bloomberg 1-3 Month T-Bill ETF -365.64 14,195.97 -2.58%
VOT Vanguard Mid-Cap Growth ETF -357.38 10,798.80 -3.31%

 

ETF Weekly Flows By Asset Class

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 2,619.83 4,082,959.25 0.06%
International Equity 557.98 1,295,175.82 0.04%
U.S. Fixed Income 2,953.14 1,064,823.20 0.28%
International Fixed Income 1,228.97 160,039.46 0.77%
Commodities 1,349.80 151,739.88 0.89%
Currency 21.61 3,199.56 0.68%
Leveraged 286.05 62,468.79 0.46%
Inverse 399.01 15,086.94 2.64%
Asset Allocation 21.49 19,878.20 0.11%
Alternatives 108.81 7,246.17 1.50%
Total: 9,546.70 6,862,617.27 0.14%

 

Asset Classes (Year-to-Date)

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 45,212.75 4,082,959.25 1.11%
International Equity 31,776.63 1,295,175.82 2.45%
U.S. Fixed Income -8,149.34 1,064,823.20 -0.77%
International Fixed Income 5,159.10 160,039.46 3.22%
Commodities 7,754.71 151,739.88 5.11%
Currency 163.79 3,199.56 5.12%
Leveraged 5,324.15 62,468.79 8.52%
Inverse 2,973.38 15,086.94 19.71%
Asset Allocation 515.84 19,878.20 2.60%
Alternatives 320.18 7,246.17 4.42%
Total: 91,051.19 6,862,617.27 1.33%

 

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

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
WINN Harbor Long-Term Growers ETF 92.80% 58,938 7.33
UNG United States Natural Gas Fund LP 7.70% 30,835,455 302.42
GAZ iPath Series B Bloomberg Natural Gas Subindex Total Return ETN 6.86% 96,715 10.19
PLTM GraniteShares Platinum Trust 6.55% 173,415 45.46
KURE KraneShares MSCI All China Health Care Index ETF 6.40% 309,036 130.31
CHNA Loncar China BioPharma ETF 6.28% 2,263 6.83
PGM iPath Series B Bloomberg Platinum Subindex Total Return ETN 6.21% 30,603 7.23
UNL United States 12 Month Natural Gas Fund LP 6.01% 297,533 24.49
PPLT Aberdeen Standard Physical Platinum Shares ETF 5.75% 518,225 1,238.89
KEJI Global X China Innovation ETF 5.66% 1,319 3.28

 

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
OIH VanEck Oil Services ETF 32.89% 2.62% 2,813.45
SARK Tuttle Capital Short Innovation ETF 30.16% 3.96% 318.55
IEZ iShares U.S. Oil Equipment & Services ETF 29.64% 2.83% 184.74
XES SPDR S&P Oil & Gas Equipment & Services ETF 27.43% 2.24% 230.67
SOGU The Short De-SPAC ETF 26.05% 1.00% 33.57
PXJ Invesco Dynamic Oil & Gas Services ETF 25.79% 2.56% 26.81
UNG United States Natural Gas Fund LP 25.46% 7.70% 302.42
PALL Aberdeen Standard Physical Palladium Shares ETF 25.20% -0.28% 402.46
GAZ iPath Series B Bloomberg Natural Gas Subindex Total Return ETN 24.08% 6.86% 10.19
VXX iPath Series B S&P 500 VIX Short Term Futures ETN 23.91% -1.50% 1,048.85

 

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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