US fixed income on top
ETFs started 2018 on a very promising note. According to FactSet, the total ETF inflows amounted to $5.32 billion for the first week of the year. The surprising feature of last week’s inflow was that US equity wasn’t the most popular asset class—unlike the past year. It only added $138.9 million despite the markets trending higher. The first rank has been bestowed on US fixed income with inflows worth $2.95 billion. International equity followed next with an addition of $2.53 billion, while international fixed income had $871.3 million. Commodities saw outflows of $213.2 million.
The iShares Core S&P 500 ETF (IVV), which was the biggest gainer last year, garnered the highest inflows of $1.1 billion. The other major gainers included the iShares Core U.S. Aggregate Bond ETF (AGG), the Industrial Select Sector SPDR Fund (XLI), and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) with inflows of $861.7 million, $817.5 million and $807.9 million, respectively.
SPY tops the outflows
The US will report the inflation rate and retail sales for December. In November, US consumer price inflation rose to 2.2% year-over-year. China will release the balance of trade data for December, while Germany and the United Kingdom will release the same data for November. China will also release the inflation rate for December. The Eurozone will report its business climate indicator for December.