Steady ETF inflows
The continued rise in stock markets due to less concern about a large-scale trade war and healthy earnings growth boosted investors’ confidence towards US equities. Investors continued to add a substantial amount to ETFs last week. FactSet data showed that US-listed ETFs garnered $6.1 billion, which brings the year-to-date inflows to $143.6 billion. US equity (JPM) (C) (MS) collected almost 95% of the total ETF inflows last week. US equity added $6.2 billion, while international equity ETFs collected $226.7 million. US fixed-income ETFs had net creations of $352 million, while international fixed-income garnered $71.4 million.
SPY was the top gainer
The SPDR S&P 500 ETF Trust (SPY) was the top gainer with net creations of $3.6 billion. SPY was followed by the Vanguard Value ETF (VTV), the Technology Select Sector SPDR Fund (XLK), and the JPMorgan BetaBuilders Japan ETF (BBJP) with net additions of $609 million, $516 million, and $500 million, respectively. BBJP’s total AUM (assets under management) have reached $1.56 billion.
The Invesco QQQ Trust (QQQ), which was the top gainer the previous week, experienced the highest outflows worth $1.4 billion last week. Other major losses included the iShares Core S&P 500 ETF (IVV) and the iShares Russell 3000 ETF (IWV) with net redemptions of $845.7 million and $717.5 million, respectively. The VanEck Vectors Semiconductor ETF (SMH) saw its AUM fall 45% to $ 732.9 million.
The Fed is scheduled to announce its interest rate decision on August 1. The Bank of England is set to announce its interest rate decision on August 2. The Bank of Japan is scheduled to announce its interest rate decision on July 31. The bank will release the monetary policy meeting minutes on August 3. The US is scheduled to unveil the balance of trade, non-farm payrolls, and unemployment data on August 3. The European Union is scheduled to disclose the second-quarter GDP growth rate on July 31. The US is scheduled to release its personal spending data for June on July 31.