Equity and Fixed Income ETFs Fuel Healthy Sept. Flows
Investors poured just over $15 billion into U.S.-listed ETFs in September, bringing year-to-date ETF net creations to $156.3 billion—a 7.3% growth rate from year-end 2015 asset under management (AUM) levels.
U.S. equity and U.S. fixed-income ETFs were almost equally popular last month, with each asset class raking in roughly half of the month’s total asset haul and betraying what appears to be a strong domestic bias among ETF investors.
The Real Estate Select Sector SPDR Fund (XLRE) saw September’s largest net creation—about $3.2 billion—an unsurprising and largely expected result as real estate became its own sector under GICS. The bulk of these fresh net dollars came from the Financial Select Sector SPDR Fund (XLF), as financials divested their real-estate-linked assets.
No Common Theme Among Most Popular ETFs
The list of top gainers last month also included demand for myriad asset exposures. For instance, developed as well as emerging market equity funds were also found among the top 10 creations for September. Also present was $1.14 billion in inflows into the VanEck Vectors Gold Miners ETF (GDX), amounting to an 11% jump in the fund’s AUM in one month. GDX has had a stellar run so far in 2016, rallying nearly 88% year-to-date while attracting nearly $3 billion in new assets.
On the fixed-income side, the Vanguard Short-Term Bond Index Fund (BSV) landed on the month’s top 10 list. Some of the strong demand for shorter-dated exposure has to do with forecasts for a rate hike still this year.
What was missing from the top gainers list was the SPDR Gold Trust (GLD). Commodities attracted a meager $182 million in net inflows last month, but GLD is still managing to hold on to 2016’s top spot, with net creations of $12.1 billion year-to-date.
Currency-Hedged ETFs Continue To Struggle
On the flip side, September was again a difficult month for currency-hedged strategies, particularly those focused on European securities. These funds have continued to struggle in the face of a softening U.S. dollar, which is down nearly 4% year-to-date, as well as mounting concerns centered on the eurozone’s financial sector.
The growing number of negative Deutsche Bank headlines and fears of the systemic risk associated with the bank’s financial woes are partly to blame for investors’ aversion for Europe-focused exposure.
The Deutsche X-trackers MSCI EAFE Hedged Equity ETF (DBEF) bled $2 billion last month—a 20% drop in AUM—bringing the fund’s year-to-date asset outflows to $4.7 billion. As an issuer of 50-plus exchange-traded products including 20 ETNs, Deutsche Bank has now seen net outflows of $6.13 billion year-to-date, putting the troubled bank’s total ETP-linked asset at about $14 billion.
The WisdomTree Europe Hedged Equity Fund (HEDJ), again among the month’s 10 biggest redemptions, has now bled more than $7.3 billion in 2016. HEDJ is the year’s largest ETF asset outflow. Its issuer, WisdomTree, has now faced a massive $12.8 billion in ETF asset redemptions so far this year, largely due to the losses in currency-hedged strategies.
Top Gainers (September 2016)
Ticker | Name | Issuer | Net Flows ($M) | AUM ($M) | % of AUM | YTD 2016 Net Flows ($M) |
State Street Global Advisors | 3,213.98 | 3,232.18 | 17,660.62% | 3,325.79 | ||
BlackRock | 1,412.32 | 78,958.10 | 1.82% | 4,933.55 | ||
BlackRock | 1,243.75 | 30,866.57 | 4.20% | 1,795.24 | ||
Van Eck | 1,138.66 | 11,200.63 | 11.32% | 2,920.46 | ||
Vanguard | 982.42 | 43,093.51 | 2.33% | 3,975.24 | ||
State Street Global Advisors | 748.95 | 2,340.04 | 47.07% | 231.98 | ||
Vanguard | 711.21 | 37,126.42 | 1.95% | 7,132.47 | ||
BlackRock | 709.62 | 17,093.91 | 4.33% | 5,510.88 | ||
Vanguard | 665.14 | 51,160.95 | 1.32% | 8,392.57 | ||
Vanguard | 653.50 | 18,934.80 | 3.57% | 1,257.66 |
Top Gainers (Year-to-Date)
Ticker | Name | Issuer | Net Flows ($M) | AUM ($M) | % of AUM | September 2016 Net Flows ($M) |
State Street Global Advisors | 12,100.45 | 40,159.76 | 43.12% | 204.73 | ||
BlackRock | 9,773.93 | 41,733.78 | 30.58% | 448.50 | ||
Vanguard | 8,392.57 | 51,160.95 | 19.62% | 665.14 | ||
BlackRock | 7,187.19 | 33,236.72 | 27.59% | 271.40 | ||
Vanguard | 7,132.47 | 37,126.42 | 23.78% | 711.21 | ||
BlackRock | 6,720.12 | 31,606.31 | 27.00% | 33.19 | ||
BlackRock | 6,317.25 | 14,442.30 | 77.75% | 75.65 | ||
BlackRock | 5,510.88 | 17,093.91 | 47.58% | 709.62 | ||
Vanguard | 5,025.54 | 35,143.68 | 16.69% | 474.10 | ||
BlackRock | 4,933.55 | 78,958.10 | 6.66% | 1,412.32 |
Biggest Losers (September 2016)
Ticker | Name | Issuer | Net Flows ($M) | AUM ($M) | % of AUM | YTD 2016 Net Flows ($M) |
State Street Global Advisors | -3,887.86 | 195,653.63 | -1.95% | -357.87 | ||
Deutsche Bank | -2,067.95 | 7,985.80 | -20.57% | -4,737.49 | ||
State Street Global Advisors | -1,313.08 | 11,861.54 | -9.97% | -4,473.78 | ||
Vanguard | -896.08 | 3,189.03 | -21.94% | -286.34 | ||
BlackRock | -766.19 | 7,554.89 | -9.21% | -6,289.02 | ||
BlackRock | -672.28 | 59,648.60 | -1.11% | -512.44 | ||
Vanguard | -647.76 | 11,027.15 | -5.55% | -3,341.10 | ||
Invesco PowerShares | -483.88 | 7,066.36 | -6.41% | 876.25 | ||
BlackRock | -476.91 | 3,107.85 | -13.30% | -387.79 | ||
WisdomTree | -467.69 | 9,109.14 | -4.88% | -7,339.02 |
Biggest Losers (Year-to-Date)
Ticker | Name | Issuer | Net Flows ($M) | AUM ($M) | % of AUM | September 2016 Net Flows ($M) |
WisdomTree | -7,339.02 | 9,109.14 | -44.62% | -467.69 | ||
BlackRock | -6,289.02 | 7,554.89 | -45.43% | -766.19 | ||
WisdomTree | -5,795.20 | 6,876.40 | -45.73% | -110.79 | ||
BlackRock | -5,701.33 | 14,193.74 | -28.66% | -190.41 | ||
Deutsche Bank | -4,737.49 | 7,985.80 | -37.23% | -2,067.95 | ||
Invesco PowerShares | -4,609.49 | 39,026.88 | -10.56% | -441.97 | ||
State Street Global Advisors | -4,473.78 | 11,861.54 | -27.39% | -1,313.08 | ||
Vanguard | -3,341.10 | 11,027.15 | -23.25% | -647.76 | ||
BlackRock | -2,438.27 | 30,223.48 | -7.47% | 125.24 | ||
BlackRock | -2,204.47 | 3,603.36 | -37.96% | 31.09 |
Asset Classes (September 2016)
Net Flows ($M) | AUM ($M) | % of AUM | |
U.S. Equity | 7,459.54 | 1,267,147.64 | 0.59% |
International Equity | -6.46 | 485,279.44 | -0.00% |
U.S. Fixed Income | 6,745.15 | 386,680.29 | 1.74% |
International Fixed Income | 400.47 | 39,302.73 | 1.02% |
Commodities | 182.39 | 70,426.96 | 0.26% |
Currency | -59.54 | 1,311.34 | -4.54% |
Leveraged | 281.92 | 23,371.24 | 1.21% |
Inverse | 177.54 | 19,054.67 | 0.93% |
Asset Allocation | 12.43 | 6,164.58 | 0.20% |
Alternatives | -13.27 | 4,054.49 | -0.33% |
Total: | 15,180.17 | 2,302,793.38 | 0.66% |
Asset Classes (Year-to-Date)
Net Flows ($M) | AUM ($M) | % of AUM | |
U.S. Equity | 53,894.05 | 1,174,919.78 | 4.59% |
International Equity | -1,125.96 | 457,158.76 | -0.25% |
U.S. Fixed Income | 67,639.16 | 360,067.42 | 18.79% |
International Fixed Income | 10,156.36 | 33,146.26 | 30.64% |
Commodities | 17,288.57 | 62,105.60 | 27.84% |
Currency | -81.68 | 1,305.08 | -6.26% |
Leveraged | -684.59 | 22,505.85 | -3.04% |
Inverse | 6,651.07 | 18,924.61 | 35.15% |
Asset Allocation | 11.75 | 5,600.06 | 0.21% |
Alternatives | 2,619.46 | 3,609.98 | 72.56% |
Total: | 156,368.19 | 2,139,343.40 | 7.31% |
September 2016 League Table
Issuer | Net Flows ($M) | AUM ($M) | % of AUM | YTD 2016 Net Flows ($M) |
BlackRock | 8,438.45 | 891,683.95 | 0.95% | 63,078.92 |
Vanguard | 6,012.11 | 549,383.16 | 1.09% | 63,059.57 |
State Street Global Advisors | -1,364.68 | 436,984.94 | -0.31% | 12,556.86 |
Invesco PowerShares | 152.76 | 104,474.09 | 0.15% | 3,509.11 |
Charles Schwab | 1,350.61 | 50,614.18 | 2.67% | 10,847.30 |
First Trust | 153.44 | 37,801.19 | 0.41% | -3,483.22 |
WisdomTree | -784.36 | 36,580.99 | -2.14% | -12,865.21 |
Van Eck | 1,813.07 | 30,004.76 | 6.04% | 6,352.75 |
Guggenheim | 10.93 | 28,114.54 | 0.04% | -274.30 |
ProShares | 659.56 | 25,745.18 | 2.56% | 6,899.86 |
Deutsche Bank | -2,172.14 | 14,432.55 | -15.05% | -6,133.98 |
PIMCO | -21.71 | 11,543.79 | -0.19% | 892.61 |
ALPS | -14.37 | 11,204.48 | -0.13% | 1,094.88 |
Direxion | -18.37 | 9,889.04 | -0.19% | 295.19 |
Northern Trust | 136.34 | 9,824.94 | 1.39% | 1,967.01 |
Barclays Capital | -65.23 | 6,717.91 | -0.97% | 1,353.05 |
UBS | 87.48 | 6,009.34 | 1.46% | 924.40 |
US Commodity Funds | 250.06 | 4,511.87 | 5.54% | 194.55 |
JPMorgan | 46.43 | 4,308.87 | 1.08% | 560.53 |
Fidelity | 53.37 | 4,035.77 | 1.32% | 263.60 |
Global X | 65.41 | 3,621.09 | 1.81% | 348.60 |
VelocityShares | -49.95 | 3,510.71 | -1.42% | 1,022.77 |
Goldman Sachs | 54.80 | 2,407.09 | 2.28% | 1,393.86 |
ETF Securities | 11.73 | 2,366.69 | 0.50% | 278.54 |
IndexIQ | 56.37 | 2,084.97 | 2.70% | 563.71 |
Exchange Traded Concepts | 5.07 | 2,037.30 | 0.25% | 164.50 |
Credit Suisse | 11.39 | 1,721.89 | 0.66% | 53.18 |
AdvisorShares | -8.19 | 1,126.77 | -0.73% | 70.27 |
Millington Securities Inc | -53.55 | 1,120.70 | -4.78% | -322.93 |
OppenheimerFunds | 64.48 | 1,113.77 | 5.79% | 78.93 |
Columbia | 12.62 | 964.61 | 1.31% | -34.33 |
ETF Managers Group | 6.24 | 885.48 | 0.70% | -155.01 |
Pacer Financial | 13.71 | 649.46 | 2.11% | 58.66 |
Victory Capital Management | 53.55 | 614.52 | 8.71% | 274.86 |
John Hancock | 38.03 | 530.95 | 7.16% | 443.60 |
Virtus | 16.31 | 427.37 | 3.82% | 104.40 |
Highland Capital Management | 53.75 | 401.32 | 13.39% | 122.08 |
FQF Trust | 20.52 | 370.89 | 5.53% | 309.00 |
Swedish Export Credit | -27.81 | 355.92 | -7.81% | -63.96 |
The Principal Financial Group | 46.63 | 284.79 | 16.37% | 279.16 |
Cambria | -3.22 | 277.68 | -1.16% | -37.10 |
Franklin ETF Trust | 33.92 | 263.04 | 12.90% | 11.92 |
KraneShares | 26.21 | 262.46 | 9.99% | 58.90 |
CitiGroup | 0.00 | 232.45 | 0.00% | 0.00 |
Merk | -0.21 | 154.50 | -0.14% | 61.20 |
Teucrium | -9.11 | 149.86 | -6.08% | 70.11 |
Alpha Architect | 1.35 | 126.94 | 1.07% | 55.86 |
Arrow Investment Advisors | 0.00 | 111.99 | 0.00% | -7.94 |
Legg Mason | 4.20 | 96.20 | 4.37% | 76.31 |
Lattice Strategies | 4.59 | 88.73 | 5.17% | 17.56 |
Janus | -1.53 | 80.96 | -1.89% | -15.87 |
Recon Capital | 2.19 | 68.55 | 3.20% | 19.69 |
ARK | 4.47 | 54.66 | 8.18% | 8.52 |
Reality Shares | -0.61 | 42.58 | -1.42% | -3.64 |
US Global Investors | 0.00 | 40.21 | 0.00% | -4.77 |
Morgan Stanley | 0.00 | 38.94 | 0.00% | 0.00 |
Academy Funds | -1.15 | 35.04 | -3.29% | -24.55 |
Montage Managers | 3.51 | 33.94 | 10.35% | 13.51 |
AlphaMark Advisors | 0.00 | 23.42 | 0.00% | -6.76 |
Validea Capital Management | 0.00 | 19.60 | 0.00% | -2.35 |
Elkhorn | 1.04 | 18.53 | 5.59% | 11.16 |
Aptus Capital Advisors | 1.27 | 18.00 | 7.06% | 16.49 |
Diamond Hill | -1.25 | 15.48 | -8.08% | -0.23 |
Royal Bank of Canada | 0.00 | 14.99 | 0.00% | -2.24 |
Renaissance Capital | 0.00 | 13.87 | 0.00% | -6.42 |
TrimTabs Asset Management | 0.00 | 12.57 | 0.00% | -1.14 |
Strategy Shares | 0.00 | 8.93 | 0.00% | -1.74 |
LocalShares | 0.00 | 8.74 | 0.02% | -1.35 |
CSOP | 0.67 | 7.94 | 8.46% | -15.28 |
AlphaClone | -1.05 | 3.72 | -28.18% | 0.89 |
USCF Advisers | 0.00 | 3.62 | 0.00% | -1.53 |
Amplify | 0.00 | 3.42 | 0.00% | 0.00 |
Nuveen | 0.00 | 0.00 | 0.00% | 0.00 |
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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