Weekly ETF Flows: Junk Bonds Lose To 'Cliff'

IndexUniverse.com

Investors yanked more than $5.5 billion out of exchange-traded funds in the past week, notably from two of the ETF market’s biggest junk bond funds, as the gnawing anxiety about the U.S. “fiscal cliff” extended into a second week and spread to the most equity-like pocket of the fixed-income world.

Total U.S.-listed ETF assets fell almost 2 percent in the five-day period ended Thursday, Nov. 15, to $1.254 trillion from $1.279 trillion. The Dow Jones industrial average gave back 269 points, or 2.1 percent, in the period, fueling much of the drop in assets.

The market is clearly worried about the prospect of the U.S. Congress failing to properly address the so-called fiscal cliff by the end of the year. The concern is that Bush and Obama tax cuts won’t be extended—and spending cuts will be implemented as well—which together could jeopardize the fragile U.S. and global economic recovery.

In addition to the $3.77 billion that came out of the SPDR S'P 500 ETF (SPY), a total of $548.1 million came out of the nearly $16 billion iShares iBoxx $ High Yield Corporate Bond Fund (HYG) and $279.1 million flowed out of the $11.64 billion SPDR Barclays High Yield Bond ETF (JNK), according to data compiled by IndexUniverse.

Some market analysts saw the end to the nearly four-year junk bond rally, but it’s more likely that junk bonds are getting caught in the downdraft of equity markets, according to market sources.

Additionally, investors pulled $750 million of the Vanguard MSCI Emerging Markets ETF (VWO), the latest sign that the asset flows in the world of developing market funds have shifted since Vanguard announced VWO would change indexes sometime next year.

All the selling in equities markets made the bond market more attractive, and indeed the Vanguard Total Bond Market ETF (BND) was last week’s most popular ETF, with inflows of $365.2 million.

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
BND Vanguard Total Bond Market 365.20 17,690.53 2.11%
BIL SPDR Barclays 1-3 Month T-Bill 293.18 1,497.99 24.33%
XLV Health Care Select SPDR 233.14 5,500.16 4.43%
XLU Utilities Select SPDR 215.85 5,852.14 3.83%
GDX Market Vectors Gold Miners 193.20 9,309.29 2.12%
IWD iShares Russell 1000 Value 188.21 12,998.39 1.47%
FXI iShares FTSE China 25 183.96 6,132.04 3.09%
VOO Vanguard S'P 500 161.77 5,652.92 2.95%
IWF iShares Russell 1000 Growth 150.31 15,887.11 0.96%
IYR iShares Dow Jones U.S. Real Estate 146.92 4,777.44 3.17%


Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S'P 500 -3,772.38 100,911.89 -3.60%
IWM iShares Russell 2000 -805.28 14,296.20 -5.33%
VWO Vanguard MSCI Emerging Markets -750.02 54,913.00 -1.35%
HYG iShares iBoxx $ High Yield Corporate Bond -548.10 15,939.70 -3.32%
LQD iShares iBoxx $ Investment Grade Corporate Bond -328.95 25,283.32 -1.28%
JNK SPDR Barclays High Yield Bond -279.10 11,644.09 -2.34%
QQQ PowerShares QQQ -278.51 28,893.58 -0.95%
XLI Industrial Select SPDR -249.16 3,129.54 -7.37%
DIA SPDR Dow Jones Industrial Average Trust -238.85 9,835.59 -2.37%
MDY SPDR S'P MidCap 400 -225.94 8,596.67 -2.56%


ETF Weekly Daily Flows By Asset Class

Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -5,555.38 548,759.41 -1.01%
International Equity 367.42 294,301.05 0.12%
U.S. Fixed Income -870.10 225,895.77 -0.39%
International Fixed Income 437.46 24,254.83 1.80%
Commodities -58.28 120,172.02 -0.05%
Currency 68.76 2,864.67 2.40%
Leveraged 444.09 12,580.86 3.53%
Inverse -350.73 19,050.98 -1.84%
Asset Allocation 8.99 2,214.20 0.41%
Alternatives -81.86 3,922.72 -2.09%
Total: -5,589.63 1,254,016.52 -0.45%


Top 10 Volume Surprises, Funds '$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
ITF iShares S'P/TOPIX 150 10,642 241,205 453.30%
PSCT PowerShares S'P SmallCap Information Technology 18,828 400,433 425.36%
SPYV SPDR S'P 500 Value 8,750 181,196 414.14%
JKH iShares Morningstar Mid Growth 10,140 189,359 373.47%
SLYV SPDR S'P SmallCap 600 Value 14,641 271,371 370.70%
PBS PowerShares Dynamic Media 160,740 2,969,967 369.54%
BRXX EGShares Brazil Infrastructure 36,826 623,383 338.55%
PXF PowerShares FTSE RAFI Developed Markets ex-U.S. 42,416 716,639 337.91%
KBWB PowerShares KBW Bank 416,190 7,028,055 337.73%
GTAA AdvisorShares Cambria Global Tactical 14,384 223,554 310.84%


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

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
PTM ETRACS CMCI Long Platinum Total Return ETN 5.64% 537,396 38.96
NIB iPath Dow Jones-UBS Cocoa Total Return ETN 4.68% 93,762 33.20
CHOC iPath Pure Beta Cocoa ETN 4.50% 24,687 5.59
USV ETRACS CMCI Silver Total Return ETN 3.87% 41,578 7.31
NAGS Teucrium Natural Gas 3.37% 5,308 5.10
BAL iPath Dow Jones-UBS Cotton Total Return ETN 3.30% 161,295 32.03
UGA United States Gasoline 2.83% 146,869 64.83
EPOL iShares MSCI Poland Investable Market 2.81% 974,191 132.91
JJP iPath Dow Jones-UBS Precious Metals Total Return ETN 2.79% 16,278 42.73
PALL ETFS Physical Palladium 2.66% 162,115 458.51

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

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
GDXJ Market Vectors Junior Gold Miners -11.58% 18,749,788 2,786.04
GLDX Global X Gold Explorers -11.30% 479,834 38.21
GDX Market Vectors Gold Miners -10.58% 84,145,395 9,309.29
URA Global X Uranium -10.53% 1,240,539 114.46
RING iShares MSCI Global Gold Miners -10.35% 64,666 37.05
GGGG Global X PURE Gold Miners -10.18% 64,627 4.23
PSAU PowerShares Global Gold and Precious Metals -10.14% 70,894 34.35
TAN Guggenheim Solar -9.97% 174,708 36.78
SIL Global X Silver Miners -9.95% 2,319,718 368.80
JUNR Global X Junior Miners ETF -9.25% 99,742 2.89

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
ITB iShares Dow Jones U.S. Home Construction 60.02 -8.01 1,490.88
EGPT Market Vectors Egypt 51.37 -1.85 51.03
TUR iShares MSCI Turkey Investable Market 48.86 -2.10 613.94
XHB SPDR S'P Homebuilders 43.59 -6.20 1,830.37
TAO Guggenheim China Real Estate 42.14 0.00 45.92
INCO EGShares India Consumer 41.09 2.31 2.28
BBH Market Vectors Biotech 39.83 1.58 137.57
EPHE iShares MSCI Philippines Investable Market 35.86 0.25 155.13
IFAS iShares FTSE EPRA/NAREIT Developed Asia 35.13 -0.63 32.13
HGEM EGShares Health Care GEMS 31.37 -1.07 2.09

Bottom 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
CVOL C-Tracks Citi Volatility ETN -74.45 -6.64 6.26
VXX iPath S'P 500 VIX Short-Term Futures ETN -74.44 -2.34 1,573.66
VIIX VelocityShares VIX Short Term ETN -74.36 -2.33 8.45
VIXY ProShares VIX Short-Term -74.35 -2.36 174.57
KWT Market Vectors Solar Energy -48.64 -7.90 8.56
VIIZ VelocityShares VIX Mid Term ETN -47.97 0.14 5.74
VXZ iPath S'P 500 VIX Mid-Term Futures ETN -47.69 0.28 107.90
VIXM ProShares VIX Mid-term -47.57 0.34 105.46
TAN Guggenheim Solar -46.96 -9.97 36.78
JO iPath Dow Jones-UBS Coffee Total Return ETN -38.84 -2.81 43.35

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.

Permalink | ' Copyright 2012 IndexUniverse LLC. All rights reserved
View Comments