Higher inflows in US fixed income
US-listed ETFs continued to witness strong inflows last week with the addition of $8.9 billion. It brought the year-to-date total to $312 billion. All of the major asset classes saw heavy inflows during the week. A rally in government bonds encouraged investors to invest $2.62 billion in US fixed income ETFs, while international fixed income added another $414.4 million. During the same period, bonds rose—the US ten-year Treasury yield fell by 11 basis points for the week to 2.05%. US equity (BAC) (MS) (JPM) (GS) added $2.5 billion, while international equity had $1.7 billion. The S&P 500 fell due to concerns related to North Korea and Hurricane Irma.
The iShares Core S&P 500 ETF (IWM) had the largest inflows of $1.1 billion. The iShares Russell 2000 ETF (TLT) added $919 million, while the Consumer Staples Select Sector SPDR Fund (XLP) added $892 million. The SPDR Gold Trust (GLD) added $873 million—gold prices rose to the highest level in a year. The largest outflow was witnessed in the SPDR S&P 500 ETF Trust (SPY) with net redemptions of $1.37 billion, while the Industrial Select Sector SPDR Fund (XLI) had outflows of $720 million.
This week, the United Kingdom will release the inflation rate for August and the unemployment rate for July. Consumer prices in the United Kingdom rose 2.6% in July, while the unemployment rate fell to a 42-year low of 4.4% in June. China will report its consumer price index data and new yuan loans. Russia’s second quarter GDP data will also be released this week.