ETFs Lose $11B Last Week

ETFs Lose $11B Last Week

It’s the worst week for ETF flows since September 2021.

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

Investors on aggregate pulled nearly $11 billion in assets out of ETFs last week as fears grow that the Fed’s aggressive tone on hiking rates to cool inflation could lead to a recession. 

The loss of $10.9 billion between April 4 and April 8 is the second week of outflows this year, and the worst since mid-September of last year when fears of Chinese property developer Evergrande’s collapse spurred nearly $30 billion in outflows. 

U.S.-listed ETFs ended the week with a net gain of $195.1 billion year-to-date and had $6.9 trillion in assets under management. 

US Stocks, Bonds Sell Off 

Domestic equity and fixed income ETFs suffered billion-dollar outflows, with stock funds losing $13.6 billion and bond funds decreasing by $4.8 billion. 

The SPDR S&P 500 ETF Trust (SPY) took just under $10 billion in outflows on the week, followed by the Invesco QQQ Trust (QQQ) losing $3.2 billion in a distant second place. 

Sector-specific ETFs also struggled, with the Financial Select Sector SPDR Fund (XLF) losing $3 billion as fears of a recession outweighed the prospect of interest rate hikes that in theory support greater bank earnings. J.P. Morgan is scheduled to kick off earnings season when it releases first quarter numbers on Wednesday. 

Fears over persistent inflation and higher borrowing costs caused the Industrial Select Sector SPDR Fund (XLI) to lose $554 million on the week. 

The combination of soaring Treasury yields and a shaky economic outlook led to a hammering in corporate bond funds.  

The iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) led fixed income fund losers, with $1.3 billion in outflows, followed by the SPDR Bloomberg High Yield Bond ETF (JNK), which lost just less than $935 million. The Vanguard Short-Term Corporate Bond ETF (VCSH) and the iShares iBoxx USD High Yield Corporate Bond ETF (HYG) lost a combined $1.47 billion in assets on the week. 

The iShares 7-10 Year Treasury Bond ETF (IEF) was the lone government bond fund on the top 10 outflows list, losing $496 million on the week. The 10-year yield has risen 20 points from April 4 to Monday afternoon. 

Emerging Markets Take Slim Wins 

Inflows were sparse among the broad-market and sector-specific funds, with the iShares Core S&P 500 ETF (IVV) leading gainers with $1.4 billion and the Vanguard S&P 500 ETF (VOO) adding $847 million. 

The Direxion Daily Semiconductor Bull 3X Shares (SOXL) had the second-largest inflows, with $1.1 billion in assets added for a 20.9% jump in AUM, despite the industry indicator VanEckVectors Semiconductor ETF (SMH) posting a 4.38% loss on the week with no positive days. 

The only clear trend in inflows was in emerging market equity ETFs. The iShares MSCI Emerging Markets ETF (EEM) added $1.1 billion to lead the category, and the Vanguard FTSE Emerging Markets ETF (VWO) and the iShares Core MSCI Emerging Markets (IEMG) added a combined $1.12 billion. 

The Vanguard Intermediate-Term Corporate Bond ETF (VCIT) led fixed income inflows, with $426 million in new assets, followed by the SPDR Blackstone Senior Loan ETF (SRLN), with just shy of $411 million. 
 

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

 

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IVViShares Core S&P 500 ETF1,399.26332,238.160.42%
SOXLDirexion Daily Semiconductor Bull 3X Shares1,144.745,486.3120.87%
EEMiShares MSCI Emerging Markets ETF1,115.1229,389.963.79%
VOOVanguard S&P 500 ETF847.23290,357.810.29%
XLVHealth Care Select Sector SPDR Fund655.0039,108.981.67%
VWOVanguard FTSE Emerging Markets ETF645.1678,764.570.82%
IEMGiShares Core MSCI Emerging Markets ETF473.6773,690.380.64%
VCITVanguard Intermediate-Term Corporate Bond ETF426.4545,390.410.94%
SRLNSPDR Blackstone Senior Loan ETF410.7910,760.083.82%
BNDVanguard Total Bond Market ETF377.2382,271.570.46%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust-9,993.91407,951.25-2.45%
QQQInvesco QQQ Trust-3,264.17191,579.93-1.70%
XLFFinancial Select Sector SPDR Fund-3,020.9741,941.92-7.20%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF-1,355.0332,004.08-4.23%
JNKSPDR Bloomberg High Yield Bond ETF-934.946,586.19-14.20%
VCSHVanguard Short-Term Corporate Bond ETF-915.2140,351.76-2.27%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-692.7614,169.93-4.89%
XLIIndustrial Select Sector SPDR Fund-554.0515,165.25-3.65%
DIASPDR Dow Jones Industrial Average ETF Trust-518.8530,156.38-1.72%
IEFiShares 7-10 Year Treasury Bond ETF-496.3316,836.96-2.95%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity-13,660.534,218,036.30-0.32%
International Equity4,370.381,262,062.920.35%
U.S. Fixed Income-4,857.971,050,670.79-0.46%
International Fixed Income917.14157,443.720.58%
Commodities400.08169,303.530.24%
Currency263.703,765.997.00%
Leveraged1,599.6866,313.392.41%
Inverse-108.9716,927.42-0.64%
Asset Allocation54.5919,091.510.29%
Alternatives25.817,347.680.35%
Total:-10,996.096,970,963.26-0.16%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity91,929.864,218,036.302.18%
International Equity50,961.131,262,062.924.04%
U.S. Fixed Income10,269.781,050,670.790.98%
International Fixed Income8,260.66157,443.725.25%
Commodities19,297.77169,303.5311.40%
Currency633.253,765.9916.81%
Leveraged8,437.8866,313.3912.72%
Inverse4,314.1116,927.4225.49%
Asset Allocation724.3319,091.513.79%
Alternatives287.977,347.683.92%
Total:195,116.746,970,963.262.80%

 

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
UNGUnited States Natural Gas Fund LP11.57%47,204,225421.27
GAZiPath Series B Bloomberg Natural Gas Subindex Total Return ETN11.40%196,39622.34
PFIXSimplify Interest Rate Hedge ETF11.35%964,408219.44
SOGUThe Short De-SPAC ETF11.12%122,58121.38
UNLUnited States 12 Month Natural Gas Fund LP10.62%332,93330.32
URNMNorth Shore Global Uranium Mining ETF8.44%3,162,2281,078.67
VIXYProShares VIX Short-Term Futures ETF7.73%43,349,357424.05
RRHAdvocate Rising Rate Hedge ETF7.18%10,94822.11
URAGlobal X Uranium ETF5.50%13,000,0682,034.55
BTALAGFiQ U.S. Market Neutral Anti-Beta Fund5.39%2,671,986110.04

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
UNGUnited States Natural Gas Fund LP79.10%11.57%421.27
GAZiPath Series B Bloomberg Natural Gas Subindex Total Return ETN77.74%11.40%22.34
UNLUnited States 12 Month Natural Gas Fund LP74.14%10.62%30.32
JJNiPath Series B Bloomberg Nickel Subindex Total Return ETN63.39%1.87%67.19
OIHVanEck Oil Services ETF51.87%-2.83%3,917.55
XESSPDR S&P Oil & Gas Equipment & Services ETF50.81%-3.74%332.72
JJEiPath Series B Bloomberg Energy Subindex Total Return ETN50.34%-0.89%6.53
IEZiShares U.S. Oil Equipment & Services ETF48.84%-2.94%319.04
PSCEInvesco S&P SmallCap Energy ETF46.38%-1.73%171.01
RJNElements Rogers International Commodity Index-Energy TR ETN46.21%-1.78%11.07

 

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.