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ETF Inflows Rose amid a Strong Rally in the Market

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ETF inflows top $8.5 billion

The rise in US stocks to more than a five-month high prompted investors to put money into ETFs. FactSet data showed that US-listed ETFs added $8.5 billion last week, which brings the year-to-date inflows to $131.2 billion. US equity added $4.4 billion, while international equity saw net redemptions of $831.8 million. US fixed income had the highest inflows of $4.5 billion, while international fixed income garnered moderate inflows of $317.8 million.

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Fixed-income ETFs lead the inflows

US fixed-income ETFs continued to lead the inflows chart. The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) was the top gainer of the week with inflows of $1.4 billion. The iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) had combined inflows of more than $1.1 billion. The SPDR S&P 500 ETF Trust was also popular among investors. Investors poured $928 million into the fund.

The outflows were led by the iShares Russell 2000 ETF (IWM) with net redemptions of $1.1 billion followed by the iShares Russell 1000 ETF (IWB) and the Vanguard FTSE Emerging Markets ETF (VWO). Amid weakness in gold prices, the SPDR Gold Trust (GLD) witnessed outflows of $320.9 million.

Upcoming events

Fed Chair Jerome Powell’s testimony to Congress is scheduled on Tuesday and Wednesday. The US-Russia summit will take place on Monday. Monday will see the release of US retail sales data for June and China’s GDP growth rate for the second quarter. The UK is scheduled to disclose the unemployment rate for May on Tuesday and the inflation rate for June on Wednesday. Japan and Canada are scheduled to unveil the inflation rate for June on Friday.

Goldman Sachs (GS) is scheduled to report its second-quarter earnings on Tuesday. American Express (AXP), Morgan Stanley (MS), and U.S. Bancorp (USB) are scheduled to report their earnings on Wednesday.

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