'XLRE' Soaks Up $3 Billion, Junk Bonds Shed Assets

U.S.-listed ETFs saw outflows this week, breaking a nine-week win streak.

ETF.com
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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

After nine-straight weeks of inflows, U.S.-listed exchange-traded funds finally saw a net outflow. Aggregate assets dropped a modest $1.4 billion in the week ending Thursday, Sept. 15, according to FactSet data.

However, flows were split for the major asset classes. U.S. equity ETFs and international equity ETFs did well, garnering inflows of $1.3 billion and $1.2 billion, respectively. On the other hand, U.S. fixed-income ETFs had outflows of $2.7 billion; international fixed-income ETFs had outflows of $550 million; and commodity ETFs had outflows of more than $900 million.

Sinking bond prices (and rising interest rates) prompted investors to cut their exposure to fixed-income products ahead of a key Federal Reserve monetary policy decision next week. 

XLRE Absorbs $2.8 Billion From Sister Fund

In terms of individual ETFs, the Real Estate Select Sector SPDR Fund (XLRE) was far and away the inflows leader this week, collecting  more than$2.8 billion in assets. It's likely that almost all of XLRE's inflows came from its sister fund, the Financial Select Sector SPDR Fund (XLF), which spun off its real estate assets to comply with new Global Industry Classifcation Standard (GICS). The new GICS that went into effect this month made real estate into its own sector, separate from financials. 

Aside from XLRE, the rest of the top 10 inflows list was dominated by various Vanguard funds. The Vanguard Mid-Cap Index Fund (VO), the Vanguard Extended Market Index Fund (VXF), the Vanguard FTSE Emerging Markets ETF (VWO) and three other Vanguard ETFs made the list. 

Another notable winner was the VanEck Vectors Junior Gold Miners ETF (GDXJ), which had inflows of more than $500 million. Gold prices sank to the low $1,300/oz range this week, which may have prompted some investors to go bargain hunting in miner ETFs such as GDXJ.

Junk Bond ETFs Shed Assets

On the outflows side, the SPDR S&P 500 ETF (SPY) topped the individual ETF list. That was followed by a pair of high-yield bond ETFs. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) saw outflows of $1.5 billion, while the rival SPDR Barclays High Yield Bond ETF (JNK) had outflows of $1.1 billion.

Other notable losers included the SPDR Gold Trust (GLD), with outflows of $790 million; the iShares JP Morgan USD Emerging Markets Bond ETF (EMB), with outflows of $740 million; and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), with outflows of $680 million.

Meanwhile, three sector ETFs also had big redemptions: the Technology Select Sector SPDR Fund (XLK), the Energy Select Sector SPDR Fund (XLE) and the aforementioned XLF.

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

 

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
XLREReal Estate Select Sector SPDR Fund2,849.222,835.0020,044.42%
VOVanguard Mid-Cap Index Fund1,043.4115,782.987.08%
VXFVanguard Extended Market Index Fund754.593,782.3924.92%
VWOVanguard FTSE Emerging Markets ETF674.6642,170.671.63%
VBVanguard Small-Cap Index Fund653.5414,483.684.73%
VBRVanguard Small Cap Value Index Fund639.258,556.678.07%
GDXJVanEck Vectors Junior Gold Miners ETF542.235,134.2611.81%
IWMiShares Russell 2000 ETF495.7127,456.381.84%
VOEVanguard Mid Cap Value Index Fund397.865,731.297.46%
IVViShares Core S&P 500 ETF390.3378,038.650.50%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust-2,966.26194,458.13-1.50%
HYGiShares iBoxx $ High Yield Corporate Bond ETF-1,504.3115,184.22-9.01%
QQQPowerShares QQQ Trust-1,350.5937,669.93-3.46%
JNKSPDR Barclays High Yield Bond ETF-1,067.0911,415.17-8.55%
XLKTechnology Select Sector SPDR Fund-927.6112,401.44-6.96%
XLEEnergy Select Sector SPDR Fund-900.8513,558.86-6.23%
GLDSPDR Gold Trust-789.7239,609.27-1.95%
XLFFinancial Select Sector SPDR Fund-785.6414,843.94-5.03%
EMBiShares JP Morgan USD Emerging Markets Bond ETF-742.919,066.44-7.57%
LQDiShares iBoxx $ Investment Grade Corporate Bond ETF-679.2631,762.52-2.09%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity1,252.871,317,128.080.10%
International Equity1,175.84507,565.200.23%
U.S. Fixed Income-2,703.33401,382.29-0.67%
International Fixed Income-548.1140,737.60-1.35%
Commodities-936.1673,452.88-1.27%
Currency2.371,391.580.17%
Leveraged357.9624,159.661.48%
Inverse50.1620,294.800.25%
Asset Allocation-8.986,407.10-0.14%
Alternatives-34.584,532.65-0.76%
Total:-1,391.952,397,051.83-0.06%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
Volume
% of Average
BSCNGuggenheim BulletShares 2023 Corporate Bond ETF68,943293,532425.76%
NORWGlobal X MSCI Norway ETF47,523178,776376.19%
SHESPDR SSGA Gender Diversity Index ETF1,0304,696456.11%
IEUSiShares MSCI Europe Small-Cap ETF15,29444,544291.25%
DBEZDeutsche X-trackers MSCI Eurozone Hedged Equity ETF21,45470,688329.48%
QUALiShares MSCI USA Quality Factor ETF326,6871,377,734421.73%
IGMiShares North American Tech ETF39,83789,771225.35%
QEMMSPDR MSCI Emerging Markets Quality Mix ETF10,55942,186399.54%
ANGLVanEck Vectors Fallen Angel High Yield Bond ETF200,915476,934237.38%
EWQiShares MSCI France ETF409,7521,117,500272.73%

 

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.

 

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