Weekly ETF Flows See Net Loss of $4.2B

Investors pulled nearly $4.2 billion in assets out of U.S.-listed exchange-traded funds in the week ending Sept. 9, marking the second consecutive week of net outflows for the industry.  

Last week, U.S. stocks recovered some of their decline, as both the S&P 500 and the Nasdaq-100 indexes added nearly 4% despite the Federal Reserve’s hawkish messaging. While the market may have rejoiced at the break of nearly three consecutive weeks of declines, equity-focused ETFs saw $3.7 billion in outflows in the week ending Sept. 9.  

Top shedders included the SPDR Portfolio S&P 500 Growth ETF (SPYG), which recorded just over $1 billion in outflows, the technology focused Invesco QQQ Trust (QQQ) and the iShares S&P 500 Value ETF (IVE).  

Meanwhile, flows into U.S. fixed income markets remained strong, seeing $2.7 billion of inflows, up nearly 80% from the week prior. ETFs focused on Treasury bills and high yield bonds took center stage as investors attempted to rebalance their portfolios amid heightened fear of recession. 

“Markets latched on to this view that this is peak inflation. In terms of flows, people use quite simply what’s been a pretty pronounced recovery to de-risk,” said Doug Fincher, portfolio manager at Ionic Capital Management.  

He added that all eyes will remain on the hotly anticipated consumer price index that is set to release tomorrow, as well as the announcement of the central bank’s next rate hike on Sept. 21 as indicators for future flows.  

Hours ago, the NY Federal Reserve showed that U.S. consumer inflation expectations for August slid to 5.7%, down from the expected 6.2%, according to data platform Trading Economics. Meanwhile, last Thursday, Federal Reserve Chair Jerome Powell emphasized the central bank’s commitment to battle decades-high inflation.  

“I can assure you that my colleagues and I are strongly committed to this project and we will keep at it until the job is done,” Powell said in a Q&A session presented by the Cato Institute, leading investors to expect yet another 75 basis point hike next week.  

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

Top 10 Creations (All ETFs)

Top 10 Redemptions (All ETFs)

ETF Weekly Flows By Asset Class

Asset Classes (Year-to-Date)

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

Top 10 YTD Performers

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.