Huge SPY Outflows Affected Total ETF Inflows
Modest ETF inflows
Notwithstanding the market sell-offs, ETF inflows continued to trend higher though with lower intensity. FactSet data showed that ETFs saw $3.3 billion in inflows last week. Year-to-date inflows have already set a new record at $392.1 billion. International equity added $3.7 billion, while US fixed income collected $774 million. Apart from these two asset classes, all others have witnessed substantial outflows, dragging down the overall inflows. After many weeks, US equities (JPM) (BAC) (C) (WFC) witnessed outflows worth $994 million, while international fixed income had net redemptions of $25.6 million.
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Of the top ten ETFs, eight were either from Vanguard or BlackRock. The Vanguard S&P 500 ETF (VOO) saw the highest inflows worth $594 million followed by the iShares MSCI Japan ETF (EWJ) and the iShares Core S&P 500 ETF (IVV) with $539 million and $520 million, respectively.
SPY again led the outflows
After witnessing $3 billion in outflows in the prior week, the SPDR S&P 500 ETF Trust (SPY) saw another bout of heavy outflows with net redemptions of $6.1 billion. YTD, SPY had outflows of $11.3 billion. Apart from SPY, the iShares Russell 2000 ETF (IWM) witnessed outflows of $877.7 million. The other ETFs that experienced substantial outflows included the iShares 20+ Year Treasury Bond ETF (TLT) and the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) with net redemptions of $703 million and $561 million, respectively.
Germany, Japan, Russia, Italy and the Eurozone will report their third quarter GDP growth rate this week. The US will report its inflation rate and retail sales data for October. The United Kingdom will release its unemployment rate for September and its inflation rate for October. France and Australia will also announce their unemployment rates for October. Japan will release its balance of trade data for October.