Weekly ETF Fund Flows: Big Bond Fund Creations

IndexUniverse.com

Institutional investors tweaked interest-rate risk exposures in a very conspicuous way in the past week, with two midterm bond funds garnering massive inflows in a sign some observers said demonstrated conviction that the Federal Reserve means what it says when it says official interest rates are likely to remain low for quite some time.

Flows into the two funds—the iShares Barclays 3-7 Year Treasury Bond Fund (IEI) and the ProShares Ultra 7-10 Year Treasury ETF (UST)—collectively made fixed income the fuel behind the $3.51 billion in inflows that helped lift total U.S.-listed ETF assets by nearly 1 percent to $1.486 trillion, according to data compiled by IndexUniverse.

IEI added $1.38 billion, lifting its assets almost 60 percent to $3.68 billion, while UST, a double-exposure fund that rebalances daily, pulled in $822 million, which catapulted its assets under management upward by nearly 7,000 percent, to $833 million.

The Fed announcement this week following its policy meeting that it plans to stay the course when it comes to monetary policy might also have had something to do with demand for IEI and UST, as investors find encouragement to “ride the interest-rate risk,” according to IndexUniverse ETF Analyst Gene Koyfman.

“The idea may be that if Fed policy isn't likely to change, and the very short end of the curve offers absolutely no yield, that the next step is there will be continued pressure on the intermediate part of the curve,” said Koyfman, who specializes in fixed-income ETFs.

Perhaps crucial to index investors who benchmark performance with great care, IEI’s midterm duration is in line with current duration of the U.S. Aggregate Bond Index.

That means there isn’t that much more risk involved at this point with owning IEI than debt on the shorter end of the yield curve, Koyfman adds.

On the flip side, the SPDR Gold Shares (GLD), the world’s biggest bullion fund, continued its rough ride, suffering redemptions of almost $1 billion in the past week.

GLD’s assets tumbled by 19 percent in the month of April, as the linkage between the Fed’s easy-money policies and the purchase of gold seemed to break down. Outflows from the gold fund totaled $6.77 billion last month, and the price of the yellow metal fell 7.6 percent.

The asset hit based on those two variables was enough to make GLD the third-biggest ETF in the world by the end of the month, dropping it from the No. 2 slot where it has been for the past several years.

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
IEI iShares Barclays 3-7 Year Treasury Bond 1,378.22 3,676.02 59.98%
UST ProShares Ultra 7-10 Year Treasury 821.52 833.29 6,975.00%
DXJ WisdomTree Japan Hedged Equity 407.83 7,766.23 5.54%
XLP Consumer Staples Select SPDR 320.20 7,420.61 4.51%
IYR iShares Dow Jones U.S. Real Estate 284.11 6,000.42 4.97%
XRT SPDR S'P Retail 281.63 906.24 45.09%
SPLV PowerShares S'P 500 Low Volatility 246.24 5,472.85 4.71%
VWO Vanguard FTSE Emerging Markets 242.70 57,963.80 0.42%
XLK Technology Select SPDR 227.51 9,869.97 2.36%
VNQ Vanguard REIT 209.41 20,140.58 1.05%


Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
GLD SPDR Gold -993.43 50,481.02 -1.93%
SPY SPDR S'P 500 -946.05 130,480.96 -0.72%
UWM ProShares Ultra Russell 2000 -825.81 288.06 -74.14%
IWM iShares Russell 2000 -783.50 19,936.63 -3.78%
XIV VelocityShares Daily Inverse VIX Short Term ETN -257.06 383.40 -40.14%
USO United States Oil -236.33 884.40 -21.09%
XOP SPDR S'P Oil ' Gas Exploration ' Production -230.46 605.90 -27.56%
IWF iShares Russell 1000 Growth -193.22 18,930.91 -1.01%
TLH iShares Barclays 10-20 Year Treasury Bond -178.31 425.44 -29.53%
EWC iShares MSCI Canada -177.98 4,108.35 -4.15%


ETF Weekly Daily Flows By Asset Class

Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 1,063.88 721,768.36 0.15%
International Equity 1,128.77 360,863.26 0.31%
U.S. Fixed Income 2,306.81 242,815.78 0.95%
International Fixed Income 262.69 29,022.14 0.91%
Commodities -1,195.46 90,041.04 -1.33%
Currency -2.92 2,669.84 -0.11%
Leveraged -271.15 13,218.81 -2.05%
Inverse 118.91 19,211.11 0.62%
Asset Allocation 69.04 3,424.87 2.02%
Alternatives 33.42 3,319.70 1.01%
Total: 3,513.99 1,486,354.91 0.24%


Top 10 Volume Surprises, Funds '$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
UST ProShares Ultra 7-10 Year Treasury 838,791 24,755,284 590.26%
IEI iShares Barclays 3-7 Year Treasury Bond 579,793 13,529,666 466.71%
UWM ProShares Ultra Russell 2000 1,212,931 23,079,947 380.56%
TIPZ PIMCO Broad U.S. TIPS 20,864 372,202 356.79%
IXUS iShares Core MSCI Total International Stock 39,907 649,218 325.36%
JXI iShares S'P Global Utilities 78,629 1,276,342 324.65%
IEFA iShares Core MSCI EAFE 157,424 2,481,323 315.24%
EXI iShares S'P Global Industrials 52,149 755,622 289.79%
TLO SPDR Barclays Long Term Treasury 31,122 444,008 285.33%
IAT iShares Dow Jones U.S. Regional Banks 72,722 954,035 262.38%


Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and '1,000 Shares Traded

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
AXTE iShares MSCI ACWI ex-US Telecommunication Services 6.28% 1,200 2.80
CORN Teucrium Corn 5.76% 483,226 36.85
AGF PowerShares DB Agriculture Long ETN 5.73% 1,400 4.68
FUE ELEMENTS MLCX Biofuels Total Return ETN 5.59% 1,014 1.11
INCO EGShares India Consumer 5.05% 11,024 7.22
AXUT iShares MSCI ACWI ex-US Utilities 5.03% 6,490 6.75
TAN Guggenheim Solar 4.94% 1,276,372 73.43
SMIN iShares MSCI India Small Cap 4.89% 14,050 4.63
TUR iShares MSCI Turkey Investable Market 4.79% 1,312,173 938.25
AGOL ETFS Physical Asian Gold 4.67% 2,275 72.81

Bottom 10 Weekly Performers, Excluding Leverage/Inverse Funds and '1,000 Shares Traded

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
JJT iPath Dow Jones-UBS Tin Total Return ETN -7.82% 15,194 6.71
LEDD iPath Pure Beta Lead ETN -6.08% 1,100 0.71
JJU iPath Dow Jones-UBS Aluminum Total Return ETN -5.73% 15,977 2.86
GLDX Global X Gold Explorers -5.63% 769,687 29.42
MSXX PureFunds ISE Mining Service -5.62% 26,500 0.93
JJM iPath Dow Jones-UBS Industrial Metals Total Return ETN -5.30% 10,754 25.95
DBB PowerShares DB Base Metals -5.30% 649,134 308.13
JJN iPath Dow Jones-UBS Nickel Total Return ETN -5.12% 1,200 5.66
MOM QuantShares U.S. Market Neutral Momentum -5.00% 9,352 1.24
LD iPath Dow Jones-UBS Lead Total Return ETN -4.95% 6,885 2.75

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
IDXJ Market Vectors Indonesia Small Cap 32.82 1.85 10.44
DBJP db X-trackers MSCI Japan Hedged Equity 32.70 -0.92 55.15
BBH Market Vectors Biotech 31.59 0.20 299.07
TAN Guggenheim Solar 30.37 4.94 73.43
QCLN First Trust NASDAQ Clean Edge Green Energy 29.73 2.21 32.51
DXJ WisdomTree Japan Hedged Equity 28.12 -1.71 7,766.23
IBB iShares NASDAQ Biotechnology 26.80 0.49 3,097.02
FBT First Trust NYSE Arca Biotechnology 24.53 0.70 323.07
PBE PowerShares Dynamic Biotech ' Genome 24.05 -0.07 155.49
EIPO ETRACS Next Generation Internet ETN 23.74 8.18 6.88

Bottom 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
CVOL C-Tracks Citi Volatility ETN -59.56 -4.38 1.80
GLDX Global X Gold Explorers -45.09 -5.63 29.42
VIIX VelocityShares VIX Short Term ETN -40.03 -0.86 18.32
VXX iPath S'P 500 VIX Short-Term Futures ETN -39.92 -0.73 1,209.36
VIXY ProShares VIX Short-Term -39.39 -0.67 193.91
GDXJ Market Vectors Junior Gold Miners -37.39 -3.58 1,642.12
GDX Market Vectors Gold Miners -36.13 -3.11 5,961.56
GGGG Global X PURE Gold Miners -35.69 -3.71 3.32
RING iShares MSCI Global Gold Miners -35.47 -3.26 28.47
SIL Global X Silver Miners -35.01 -3.16 223.16

Disclaimer:All data as of 6 a.m. Eastern time the date the article is published. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.

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