30 Oct

Equities Garnered a Huge Chunk of the Total ETF Inflows

WRITTEN BY Peter Barnes

Solid inflows in equities

FactSet data show that $16.2 billion worth of inflows were added in the ETF last week, which takes the YTD (year-to-date) total to $384.3 billion. The YTD inflows have already set a new annual record. US and international equities garnered the highest inflows—comprising 82.7% of the total inflows. While US equity (JPM) (BAC) (C) (WFC) collected the largest inflows worth $10.9 billion, international equity added $2.5 billion. The S&P 500 (SPX-INDEX) (SPY) continued its record-breaking streaks on the back of strong corporate earnings, especially from the technology sector, higher 3Q17 GDP growth of 3%, and impending tax cuts.

US fixed income collected $3.5 billion, while international fixed income saw inflows of $125.7 million.

Equities Garnered a Huge Chunk of the Total ETF Inflows

SPY gained strength

Since the S&P 500 (SPX-INDEX) (SPY) continued to record new highs, ETFs tied to the index are witnessing huge inflows. The SPDR S&P 500 ETF Trust (SPY) attracted the highest inflows of $4.5 billion, while its major competitor the iShares Core S&P 500 ETF (IVV) was at the second spot with inflows of $1.8 billion. The Vanguard S&P 500 ETF (VOO) followed next with additions of $1.4 billion.

In fixed income, the iShares 20+ Year Treasury Bond ETF (TLT) was the most popular with inflows of $323 million.

The top ETFs that have seen outflows are the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the Industrial Select Sector SPDR Fund (XLI) with net redemptions of $379.5 million and $362.6 million, respectively.

Upcoming events

Brazil, Russia, Norway, Sweden, Turkey, and the Eurozone’s central banks will decide on interest rate changes this week. The US will announce pending home sales data for September. Japan will release the inflation data for September. Consumer prices in Japan rose 0.7% year-over-year in August.

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