Investors Pour $46B Into ETFs After Fed Decision

Equity funds attracted majority of the weekly inflows.   

ShubhamSaharan_white_bg
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Reviewed by: Shubham Saharan
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Edited by: Shubham Saharan

Investors flocked to exchange-traded funds as the Federal Reserve signaled that rates are going to stay higher for longer.  

Fed officials indicated they expected interest rates to rise to 5.1% by the end of next year. They see rates at 4.1% in 2024, up from the 3.9% projected previously.   

Over $46 billion poured into ETFs in the week ending Dec. 19 as investors sought to “buy the dip.” The inflow was a significant uptick from the $8 billion the industry saw the week before.  

Equity exchange-traded funds tumbled on the Federal Reserve’s 50 basis point hike, as the central bank said it expected “ongoing increases” in interest rates, dampening investors’ hopes for an early end to the cycle of hikes. The S&P 500 dropped 2.1% during the week, while the Nasdaq declined 1.1%.  

Equity-focused funds pulled in a total of $36.6 billion during the week, up from the $5.2 billion in the week ending Dec. 9. Funds which saw the most inflows included SPDR Portfolio S&P 500 Value ETF (SPYV), iShares S&P 500 Value ETF (IVE) and iShares Core S&P U.S. Value ETF (IUSV). The three funds collectively brought in nearly $12 billion, ETF.com data shows.  

Meanwhile, U.S. fixed income funds brought in $4.4 billion rebounding from the $1.8 billion posted the week prior.  

On Wednesday, the central bank underscored challenges to the global economy that may force future interest rate hikes, including persisting inflation, continuing supply and demand imbalances as well as Russia’s war in Ukraine.   

Fed Chair Jerome Powell stated during a press conference that the bank’s terminal rate, the level at which the Fed is expected to stop raising interest rates, would reach 5.1%. He noted that officials aren’t yet confident the 5.1% peak estimate won’t change in the months to come.   

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
SPYVSPDR Portfolio S&P 500 Value ETF4,546.3019,310.1323.54%
IVEiShares S&P 500 Value ETF4,478.0528,939.5715.47%
IUSViShares Core S&P U.S. Value ETF2,680.1415,124.9217.72%
SPYSPDR S&P 500 ETF Trust1,893.32367,970.780.51%
IWMiShares Russell 2000 ETF1,815.1653,633.593.38%
VTIVanguard Total Stock Market ETF1,736.76265,687.060.65%
IJJiShares S&P Mid-Cap 400 Value ETF1,674.018,937.9718.73%
VTVVanguard Value ETF1,516.10100,289.641.51%
VOVanguard Mid-Cap ETF1,455.4652,063.102.80%
BNDVanguard Total Bond Market ETF1,257.6786,316.351.46%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
QQQInvesco QQQ Trust-3,592.27149,851.10-2.40%
IVViShares Core S&P 500 ETF-1,617.57295,845.89-0.55%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF-547.8937,448.89-1.46%
MINTPIMCO Enhanced Short Maturity Active ETF-539.328,845.43-6.10%
SPLGSPDR Portfolio S&P 500 ETF-451.7614,893.30-3.03%
VNQVanguard Real Estate ETF-339.1035,111.13-0.97%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-308.4417,776.49-1.74%
USOUnited States Oil Fund LP-300.512,204.19-13.63%
PKWInvesco BuyBack Achievers ETF-264.101,531.07-17.25%
PDBCInvesco Optimum Yield Diversified Commodity Strategy No K-1 ETF-261.096,689.86-3.90%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity36,629.033,924,938.570.93%
International Equity5,764.771,151,545.490.50%
U.S. Fixed Income4,387.261,171,441.940.37%
International Fixed Income263.71140,161.770.19%
Commodities-1,409.29129,573.25-1.09%
Currency-98.344,049.86-2.43%
Leveraged-133.9748,120.32-0.28%
Inverse684.9723,000.142.98%
Asset Allocation158.2617,118.040.92%
Alternatives40.268,626.310.47%
Total:46,286.676,618,575.700.70%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity304,769.683,924,938.577.76%
International Equity96,620.641,151,545.498.39%
U.S. Fixed Income182,800.581,171,441.9415.60%
International Fixed Income7,652.03140,161.775.46%
Commodities-4,312.36129,573.25-3.33%
Currency1,708.394,049.8642.18%
Leveraged20,307.7048,120.3242.20%
Inverse10,422.2523,000.1445.31%
Asset Allocation1,082.1717,118.046.32%
Alternatives2,422.228,626.3128.08%
Total:623,473.306,618,575.709.42%

 

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

TickerNameWeekly PerformanceWeekly VolumeAUM ($, mm)
NOPENoble Absolute Return ETF22.78%534,47626.46
BDRYBreakwave Dry Bulk Shipping ETF11.67%1,458,04039.00
SATOInvesco Alerian Galaxy Crypto Economy ETF7.06%11,3372.17
MSGRDirexion mRNA ETF6.44%82,6464.79
BKCHGlobal X Blockchain ETF6.12%649,78543.78
UNGUnited States Natural Gas Fund LP5.07%29,890,460526.06
UGAUnited States Gasoline Fund LP4.22%125,37481.40
BNOUnited States Brent Oil Fund LP4.03%1,714,885246.59
BITSGlobal X Blockchain and Bitcoin Strategy ETF3.67%35,5837.25
EGPTVanEck Egypt Index ETF3.60%204,00924.79

 

Top 10 YTD Performers

TickerNameYTD PerformanceWeekly PerformanceAUM ($, mm)
TURiShares MSCI Turkey ETF94.30%-0.81%392.25
UNLUnited States 12 Month Natural Gas Fund LP90.69%2.85%34.94
UNGUnited States Natural Gas Fund LP67.49%5.07%526.06
GAZiPath Series B Bloomberg Natural Gas Subindex Total Return ETN65.88%1.06%15.66
PFIXSimplify Interest Rate Hedge ETF62.38%-8.09%320.51
XLEEnergy Select Sector SPDR Fund58.67%0.66%39,593.77
FENYFidelity MSCI Energy Index ETF58.35%0.78%1,596.96
VDEVanguard Energy ETF58.22%0.79%8,060.22
PXEInvesco Dynamic Energy Exploration & Production ETF57.68%1.33%303.64
OIHVanEck Oil Services ETF57.23%2.85%2,425.52

 

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.

Shubham Saharan is a markets reporter at etf.com. Before joining the company, she reported for Bloomberg and the Financial Times. Saharan is a graduate of Barnard College of Columbia University.