Weekly ETF Inflows Sizzle With Stock Market

Sumit Roy

Senior ETF Analyst

Jan 12, 2018

Reviewed by: Sumit Roy

Edited by: Sumit Roy

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A sizzling start to the year for the stock market went hand in hand with a sizzling start to the year for ETF inflows. The S&P 500 gained 4% in the first 10 trading sessions of 2018, its best start to a year since 2003, according to CNBC.

At the same time, U.S.-listed ETFs took in an impressive $18.7 billion during the week ending Thursday, Jan. 11, according to the latest data from FactSet. Year-to-date inflows now stand at $17.7 billion.

Unsurprisingly, most of this week's inflows went into U.S. equity ETFs―$9.2 billion―amid growing euphoria about the state of the U.S. economy and corporate profits.

International equity ETFs weren't far behind, with $7 billion worth of inflows of their own. U.S. fixed-income ETFs and international fixed-income ETFs followed suit, with inflows of $1 billion and $1.4 billion, respectively.

Bonds were hit this week, as the U.S. two-year Treasury yield topped the 2% mark for the first time since the financial crisis on the back of expectations that the Federal Reserve will have to hike rates more aggressively this year as inflation picks up. The 10-year Treasury yield briefly touched 2.6%, close to last year's high.

Low-Cost Broad ETFs Still Favored

Just like last year, ETF investors continued to favor low-cost broad market ETFs. The SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV) took in a combined $5 billion this week.

The Industrial Select Sector SPDR Fund (XLI) was another favorite, garnering inflows of $1.2 billion.

In terms of international ETFs, the iShares Core MSCI Emerging Markets ETF (IEMG) and the iShares MSCI Emerging Markets ETF (EEM) had inflows of $1.1 billion and $837 million, respectively.

On the outflows side, the iShares Russell 1000 Value ETF (IWD), the Financial Select Sector SPDR Fund (XLF), the SPDR Gold Trust (GLD), the VanEck Vectors Gold Miners ETF (GDX) and the VelocityShares 3X Long Natural Gas ETN (UGAZ) were notable losers.

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
SPY	SPDR S&P 500 ETF Trust	2,720.61	279,066.33	0.98%
IVV	iShares Core S&P 500 ETF	2,364.26	148,956.07	1.61%
XLI	Industrial Select Sector SPDR Fund	1,223.04	15,076.06	8.83%
IEMG	iShares Core MSCI Emerging Markets ETF	1,125.63	45,512.84	2.54%
QQQ	PowerShares QQQ Trust	989.15	60,546.65	1.66%
EEM	iShares MSCI Emerging Markets ETF	836.79	41,597.46	2.05%
EMB	iShares JP Morgan USD Emerging Markets Bond ETF	719.02	13,460.49	5.64%
IEFA	iShares Core MSCI EAFE ETF	677.36	44,185.20	1.56%
VOO	Vanguard S&P 500 ETF	635.47	86,955.45	0.74%
VEU	Vanguard FTSE All-World ex-US ETF	487.89	24,313.00	2.05%

Top 10 Redemptions (All ETFs)

Ticker	Name	Net Flows ($,mm)	AUM ($, mm)	AUM % Change
IWD	iShares Russell 1000 Value ETF	-1,252.88	40,778.47	-2.98%
XLF	Financial Select Sector SPDR Fund	-1,036.85	33,227.85	-3.03%
IWM	iShares Russell 2000 ETF	-558.20	41,808.70	-1.32%
XLP	Consumer Staples Select Sector SPDR Fund	-423.11	8,331.18	-4.83%
GLD	SPDR Gold Trust	-299.59	35,169.92	-0.84%
HYG	iShares iBoxx $ High Yield Corporate Bond ETF	-218.32	17,753.34	-1.21%
GDX	VanEck Vectors Gold Miners ETF	-218.19	7,317.68	-2.90%
UGAZ	VelocityShares 3X Long Natural Gas ETN	-163.94	599.38	-21.48%
IWF	iShares Russell 1000 Growth ETF	-153.22	41,452.70	-0.37%
CIU	iShares Intermediate Credit Bond ETF	-141.60	7,503.66	-1.85%

ETF Weekly Flows By Asset Class

	Net Flows ($, mm)	AUM ($, mm)	% of AUM
U.S. Equity	9,206.93	1,971,629.44	0.47%
International Equity	6,992.44	835,638.74	0.84%
U.S. Fixed Income	1,042.41	525,768.02	0.20%
International Fixed Income	1,361.63	60,839.56	2.24%
Commodities	-235.75	67,726.73	-0.35%
Currency	-0.63	1,244.60	-0.05%
Leveraged	-95.74	35,148.68	-0.27%
Inverse	242.08	15,070.56	1.61%
Asset Allocation	50.89	9,079.84	0.56%
Alternatives	113.96	4,234.51	2.69%
Total:	18,678.22	3,526,380.69	0.53%

Top 10 Volume Surprises, Funds >$50 mm AUM

Ticker	Name	Average Volume (30 Day)	1 Week Average Volume	% of Average
HOLD	AdvisorShares Sage Core Reserves ETF	8,742	56,531	646.68%
HYGH	iShares Interest Rate Hedged High Yield Bond ETF	42,871	256,170	597.53%
HYHG	ProShares High Yield-Interest Rate Hedged ETF	39,509	168,907	427.51%
IBDD	iShares iBonds Mar 2023 Term Corporate ETF	13,627	51,757	379.81%
USMC	Principal U.S. Mega-Cap Multi-Factor Index ETF	3,463	22,781	657.87%
BSJI	Guggenheim BulletShares 2018 High Yield Corporate Bond ETF	411,030	1,701,081	413.86%
MOTI	VanEck Vectors Morningstar International Moat ETF	23,841	83,402	349.83%
FEU	SPDR STOXX Europe 50 ETF	78,523	214,887	273.66%
DMRS	DeltaShares S&P 600 Managed Risk ETF	662	1,620	244.64%
DBEU	Xtrackers MSCI Europe Hedged Equity ETF	756,272	2,259,186	298.73%

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.

Sumit Roy

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Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.

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Weekly ETF Inflows Sizzle With Stock Market

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