2 Factors Fueled $24B Weekly ETF Outflows

Rebalancing and a market correction stem the asset tide.

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

One week after taking in a whopping $44.7 billion, ETF flows sharply reversed course, ending the latest week with a net outflow of $24.1 billion, according to data from FactSet. Year-to-date inflows are now down to $73.3 billion.

The wild swings in flows were likely due to rebalancing, as fund managers orchestrated large inflows and outflows to wash out low-basis stock positions and potential capital gains. Almost $20 billion of this week's outflows came on Monday alone.

The iShares Select Dividend ETF (DVY), the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Dividend Appreciation ETF (VIG) were three notable ETFs exhibiting this large inflow/outflow pattern over the past two weeks.

Another noteworthy fund to make an appearance on this week's outflows list was the iShares Core S&P 500 ETF (IVV). IVV had net redemptions of $6.6 billion—a rare occurrence for a fund that's steadily accumulated assets and that became the world's second-largest ETF last year.

The underlying S&P 500 plunged by more than 4% this week as President Trump proposed tariffs on $60 billion worth of Chinese goods.

Still, year-to-date inflows for IVV remain in positive territory to the tune of $5.6 billion, which compares well to the $10.1 billion worth of outflows seen in the rival SPDR S&P 500 ETF Trust (SPY) and even the $5.2 billion worth of inflows seen in the Vanguard S&P 500 ETF (VOO).

The iShares Russell 2000 ETF (IWM) topped the weekly inflows charts, with $1.4 billion in net creations. Small-caps handily outperformed large-caps this week as trade-war concerns weigh on the latter.

The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), the SPDR Gold Trust (GLD) and the Utilities Select Sector SPDR Fund (XLU) were a few other ETFs that saw interest this week, as a drop in interest rates made them more attractive.

The U.S. 10-year Treasury yield briefly topped 2.93% after Wednesday's Federal Reserve decision to hike interest rates, but then retreated aggressively to last trade at 2.83% as stock markets plunged.

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
IWMiShares Russell 2000 ETF1,402.7444,403.383.26%
LQDiShares iBoxx $ Investment Grade Corporate Bond ETF779.1332,053.942.49%
GLDSPDR Gold Trust522.3836,125.141.47%
XLUUtilities Select Sector SPDR Fund468.417,081.027.08%
IEFAiShares Core MSCI EAFE ETF359.7856,184.430.64%
SHViShares Short Treasury Bond ETF319.8110,199.513.24%
IYRiShares U.S. Real Estate ETF304.353,615.389.19%
XRTSPDR S&P Retail ETF242.97555.4977.74%
AGGiShares Core U.S. Aggregate Bond ETF234.2554,212.830.43%
EWZiShares MSCI Brazil ETF232.308,975.332.66%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IVViShares Core S&P 500 ETF-6,594.81149,583.10-4.22%
DVYiShares Select Dividend ETF-3,578.6816,946.11-17.44%
SPYSPDR S&P 500 ETF Trust-2,389.70269,928.32-0.88%
SCHDSchwab U.S. Dividend Equity ETF-2,306.377,311.48-23.98%
QQQPowerShares QQQ Trust-1,973.8063,727.98-3.00%
VIGVanguard Dividend Appreciation ETF-1,864.8927,584.91-6.33%
DIASPDR Dow Jones Industrial Average ETF Trust-1,269.6421,317.67-5.62%
IJRiShares Core S&P Small Cap ETF-1,025.5037,623.74-2.65%
VBVanguard Small-Cap ETF-882.4422,378.70-3.79%
VUGVanguard Growth ETF-778.6533,346.58-2.28%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-27,710.151,958,782.46-1.41%
International Equity493.20850,389.590.06%
U.S. Fixed Income1,604.46520,623.330.31%
International Fixed Income152.1662,977.300.24%
Commodities 713.3069,779.261.02%
Currency-11.801,332.52-0.89%
Leveraged683.5736,642.601.87%
Inverse1.2413,672.470.01%
Asset Allocation-69.168,940.02-0.77%
Alternatives8.364,328.220.19%
Total:-24,134.843,527,467.79-0.68%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
Volume
% of Average
KRMAGlobal X Conscious Companies ETF7,40715,597210.57%
RLYSPDR SSgA Multi-Asset Real Return ETF29,88361,575206.06%
PZDPowerShares Cleantech Portfolio13,59630,898227.26%
GEXVanEck Vectors Global Alternative Energy ETF4,4839,659215.43%
CCORCambria Core Equity ETF18,38760,328328.10%
RVNUXtrackers Municipal Infrastructure Revenue Bond ETF14,35022,759158.59%
DWINPowerShares DWA Tactical Multi-Asset Income Portfolio30,23154,787181.23%
DJCIETRACS Bloomberg Commodity Index Total Return ETN3,7095,129138.30%
DBOPowerShares DB Oil Fund1,411,8571,695,454120.09%
FLQEFranklin LibertyQ Emerging Markets ETF12,91917,232133.38%

 

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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