Weekly ETF Inflows Eke Out Gains

A $1.3 billion outflow from the leading financials ETF contributed to the slowdown in flows.

DanMika200x200.jpg
|
Reviewed by: Dan Mika
,
Edited by: Dan Mika

Inflows into U.S.-based ETFs slowed by a little more than three-quarters week over week, led primarily by a major slowdown in U.S. equities.

Data from ETF.com provider FactSet showed the U.S. ETF industry saw inflows of $5.54 billion between July 30 and August 5, compared to approximately $23.5 billion in the preceding period. Net inflows have reached $525.9 billion year-to-date.

XLF, Junk Bonds Drop

Inflows fell across most of the asset classes between this week and last, but no drop was more pronounced than in U.S. equities. The class that has mainly driven this year’s record-breaking bull run into ETFs dropped from roughly $10.5 billion in inflows last week to just $622 million this week.

The SPDR S&P 500 ETF Trust (SPY) led outflows with $1.7 billion in the period during a week where the S&P 500 slipped early in the week before recovering to almost flat as of the close on Thursday.

Investors also exited positions on the Financial Select Sector SPDR Fund (XLF) to the tune of $1.3 billion, and took out a combined $1.8 billion from the corporate junk bond funds SPDR S&P Dividend ETF (SDY) and iShares iBoxx USD High-Yield Corporate Bond ETF (HYG).

It’s difficult to pin the movements of fund flows to one single event, especially as XLF’s average daily volume makes it useful as a short-term tactical play. However, it’s likely that the flattening yield curve spooked some investors out of those ETFs.

Bonds Lead Inflows

While the U.S. fixed income sector slowed by approximately $2.3 billion week-over-week, bond ETFs were the most prevalent in inflows during the week.

The Vanguard Short-Term Bond ETF (BSV) was tops, pulling in just under $1.3 billion, while the iShares 7-10 Year Treasury Bond ETF (IEF) followed, with nearly $1.2 billion in inflows. The iShares TIPS Bond ETF (TIP) and iShares 20+ Year Treasury Bond ETF (VTI) also appeared in the week’s top 10 funds with a combined $1.5 billion.

KWEB: A YOLO Trade?

Finally, the KraneShares CSI China Internet ETF (KWEB) appeared on the top 10 inflows list with roughly $5.7 billion coming into the fund.

Financial news-watchers may be scratching their heads at those flows, considering the fund has posted losses of 26% in the past 30 days after a string of tech crackdowns from Beijing.

In the past several weeks, Chinese officials have levied a $3 billion fine against e-commerce juggernaut Alibaba Group, ordered security reviews on ridesharing app developer Didi after its U.S. listing, and raised broader questions about the government’s involvement in the private sector there.

It appears retail traders drove a “buy the dip” strategy in late June, with volumes peaking above 20 million shares daily before coming down to around 5 million or so per day this week.

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

 

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
BSVVanguard Short-Term Bond ETF1,259.4640,763.143.09%
IEFiShares 7-10 Year Treasury Bond ETF1,180.7214,940.167.90%
VOOVanguard S&P 500 ETF1,088.96244,778.730.44%
TIPiShares TIPS Bond ETF791.3632,090.402.47%
VTIVanguard Total Stock Market ETF722.18261,175.620.28%
TLTiShares 20+ Year Treasury Bond ETF693.5117,471.173.97%
XLUUtilities Select Sector SPDR Fund577.0412,882.054.48%
KWEBKraneShares CSI China Internet ETF556.125,265.1210.56%
IXUSiShares Core MSCI Total International Stock ETF430.1830,562.421.41%
IWFiShares Russell 1000 Growth ETF365.8273,021.630.50%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust-1,710.57380,875.11-0.45%
XLFFinancial Select Sector SPDR Fund-1,333.9238,677.81-3.45%
SDYSPDR S&P Dividend ETF-985.1319,498.24-5.05%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-847.9919,030.40-4.46%
QQQInvesco QQQ Trust-741.68183,113.66-0.41%
SPYDSPDR Portfolio S&P 500 High Dividend ETF-503.574,628.67-10.88%
SPHDInvesco S&P 500 High Dividend Low Volatility ETF-491.512,988.04-16.45%
SOXLDirexion Daily Semiconductor Bull 3X Shares-488.784,068.18-12.01%
IVViShares Core S&P 500 ETF-463.80295,383.14-0.16%
SCHOSchwab Short-Term U.S. Treasury ETF-392.369,012.46-4.35%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity622.663,885,641.230.02%
International Equity2,365.331,290,212.930.18%
U.S. Fixed Income2,868.601,066,204.740.27%
International Fixed Income517.44147,696.790.35%
Commodities-104.11142,626.56-0.07%
Currency5.181,980.760.26%
Leveraged-1,173.1261,485.24-1.91%
Inverse270.5111,701.402.31%
Asset Allocation97.4817,420.830.56%
Alternatives70.416,492.331.08%
Total:5,540.386,631,462.820.08%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity238,883.583,885,641.236.15%
International Equity153,361.501,290,212.9311.89%
U.S. Fixed Income100,368.391,066,204.749.41%
International Fixed Income25,281.60147,696.7917.12%
Commodities-1,495.43142,626.56-1.05%
Currency95.271,980.764.81%
Leveraged-246.1761,485.24-0.40%
Inverse4,523.9611,701.4038.66%
Asset Allocation2,981.7417,420.8317.12%
Alternatives2,151.636,492.3333.14%
Total:525,906.076,631,462.827.93%

 

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
GERMETFMG Treatments Testing and Advancements ETF8.28%88,49861.84
CHBGlobal X China Biotech Innovation ETF6.38%5,2326.57
GAZiPath Series B Bloomberg Natural Gas Subindex Total Return ETN6.02%13,6136.45
UNGUnited States Natural Gas Fund LP5.89%7,894,986286.94
RIGZViridi Cleaner Energy Crypto-Mining & Semiconductor ETF5.71%57,6594.77
CHIHGlobal X MSCI China Health Care ETF5.44%40,24719.94
BDRYBreakwave Dry Bulk Shipping ETF5.39%517,16488.79
HELXFranklin Genomic Advancements ETF5.30%18,25322.36
BBHVanEck Vectors Biotech ETF5.13%75,634618.50
DAPPVanEck Vectors Digital Transformation ETF5.04%84,88933.92

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
BDRYBreakwave Dry Bulk Shipping ETF253.12%5.39%88.79
ILCViShares Morningstar Value ETF134.10%-0.24%741.36
JJTiPath Series B Bloomberg Tin Subindex Total Return ETN91.24%-0.58%15.27
GRNiPath Series B Carbon ETN71.52%4.22%67.44
REMXVanEck Vectors Rare Earth/Strategic Metals ETF68.47%1.98%965.21
MLPOCredit Suisse S&P MLP Index ETN65.37%8.88%22.36
UNGUnited States Natural Gas Fund LP58.37%5.89%286.94
FCGFirst Trust Natural Gas ETF53.98%-4.39%238.36
GAZiPath Series B Bloomberg Natural Gas Subindex Total Return ETN53.81%6.02%6.45
PXEInvesco Dynamic Energy Exploration & Production ETF52.19%-4.00%75.42

 

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.