Net redemption in US fixed income
ETFs saw another week of record inflows even though the markets fell slightly for the second consecutive week. FactSet data showed that ETFs added $5.4 billion last week, which takes the year-to-date inflows to $398 billion. US equity (JPM) (BAC) (C) (WFC) added the highest inflows worth $3.7 billion, while international equity collected $1.6 billion. After many weeks, US fixed income witnessed outflows worth $361.9 million, while international fixed income had net creations of $143.4 million.
The PowerShares QQQ Trust (QQQ) topped the list with inflows worth $1.33 million. The other ETFs that saw higher inflows included the First Trust Technology AlphaDEX Fund (FXL), the iShares Core U.S. Aggregate Bond ETF (AGG), and the Financial Select Sector SPDR Fund (XLF) with inflows of $648.4 million, $600.4 million, and $465.3 million, respectively.
SPY led the outflows
The SPDR S&P 500 ETF Trust (SPY) continued to lead the outflows list with net redemptions of $1.45 billion. In the last three weeks, SPY had outflows worth almost $10 billion. The dip in the junk bond market impacted the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) and the iShares iBoxx $ High Yield Corporate Bond ETF (HYG). JNK and HYG witnessed outflows of $934 million and $348 million, respectively.
The United Kingdom will release the second GDP growth rate estimate for the third quarter. The first estimate showed that the economy rose 1.5% year-over-year. The US will release existing home sales data for October. In September, US existing home sales rose 0.7% to 5.39 million. The European Central Bank will hold its non-monetary policy meeting this week.