Fixed Income ETFs Fuel Record 2017 Inflow
Investors continued to add money into exchange-traded funds at a blistering pace in September, encouraged by a record run in the stock market. On net, $28.2 billion flowed into U.S.-listed ETFs during the month, according to the latest data from FactSet. That follows inflows of $29.9 billion for the month of August.
Year-to-date inflows now stand at $332.1 billion, a fresh annual record.
During the month, the S&P 500 hit a new all-time high around 2,519. The widely followed stock index was up 14.2% through the first nine months of 2017.
Meanwhile, the U.S. 10-year Treasury yield, perhaps the most widely followed bond benchmark, leapt to 2.33% by the end of September, up from where it started the month, at 2.12% (bond prices and yields move inversely).
Still, the sell-off in bonds didn't stop investors from putting money into fixed-income ETFs. They garnered the most inflows of any ETF segment during the month―$11.3 billion. That was followed by international equity ETFs, with $9.5 billion worth of inflows; and U.S. equity ETFs, with $5.6 billion.
Other segments to see notable inflows were international fixed-income ETFs, with $689 million; and commodity ETFs, with $2.2 billion.
Unfazed By Hawkish Yellen
One of the most noteworthy ETFs to see interest during September was the iShares 20+ Year Treasury Bond ETF (TLT). Its $2.5 billion worth of inflows catapulted total assets under management for the fund to $9.5 billion, an increase of 26%.
TLT was popular even as interest rates increased on the back of relatively hawkish comments from Federal Reserve Chair Janet Yellen. In a speech at the end of the month, Yellen said it could be risky to move "too gradually" in hiking interest rates.
Markets now imply there is a 70% chance that the Fed raises rates at the December central bank meeting.
Another popular ETF in September, despite falling prices, was the SPDR Gold Trust (GLD). Rising rates and a climbing dollar sent gold prices down $70/oz from their September peaks, but investors still added $2.4 billion to GLD.
Profit-Taking In Inverse VIX, Oil ETFs
Taking a look at the other side of the ledger, the ETF to see the largest outflows was the SPDR S&P 500 ETF Trust (SPY). SPY's outflows of $10.7 billion were well ahead of any other fund.
The ProShares Short VIX Short-Term Futures ETF (SVXY) and the VelocityShares Daily Inverse VIX Short-Term ETN (XIV) were two other losers on the list, with outflows of $583 million and $419 million, respectively.
Both funds rallied hard in September, and are among the top-performing ETFs of 2017, with year-to-date gains of 107%.
Finally, another fund worth mentioning is the United States Oil Fund (USO), another big loser during the month, with outflows of $490 million. Traders took profits in the fund as oil prices briefly hit a five-month high during September.
Contact Sumit Roy at sroy@etf.com
Top Gainers (September 2017)
Ticker | Name | Issuer | Net Flows ($,mm) | AUM ($M) | % of AUM | YTD 2017 Net Flows($,M) |
BlackRock | 2,458.15 | 41,153.33 | 6.35% | -553.09 | ||
BlackRock | 2,453.29 | 9,515.84 | 34.74% | 4,054.16 | ||
State Street Global Advisors | 2,040.32 | 35,643.47 | 6.07% | 1,994.87 | ||
BlackRock | 2,009.20 | 35,740.83 | 5.96% | 16,477.27 | ||
Vanguard | 1,560.94 | 62,002.57 | 2.58% | 8,540.17 | ||
Vanguard | 1,265.42 | 73,773.19 | 1.75% | 9,953.35 | ||
State Street Global Advisors | 1,186.63 | 27,219.60 | 4.56% | 2,455.14 | ||
BlackRock | 1,172.19 | 19,332.49 | 6.45% | 77.68 | ||
Vanguard | 988.17 | 62,347.82 | 1.61% | 14,165.68 | ||
BlackRock | 902.35 | 33,211.14 | 2.79% | 4,996.86 |
Top Gainers (Year-to-Date)
Ticker | Name | Issuer | Net Flows ($,mm) | AUM ($M) | % of AUM | September 2017 Net Flows($,M) |
BlackRock | 23,306.80 | 125,844.80 | 22.73% | 152.97 | ||
BlackRock | 16,477.27 | 35,740.83 | 85.54% | 2,009.20 | ||
Vanguard | 14,165.68 | 62,347.82 | 29.40% | 988.17 | ||
BlackRock | 13,403.30 | 37,215.54 | 56.29% | 752.76 | ||
Vanguard | 9,953.35 | 73,773.19 | 15.60% | 1,265.42 | ||
BlackRock | 9,505.06 | 37,485.21 | 33.97% | -835.74 | ||
BlackRock | 9,481.25 | 79,767.07 | 13.49% | 0.00 | ||
Vanguard | 8,540.17 | 62,002.57 | 15.97% | 1,560.94 | ||
BlackRock | 8,145.51 | 50,304.97 | 19.32% | 506.44 | ||
Vanguard | 6,747.50 | 17,416.10 | 63.25% | 872.63 |
Biggest Losers (September 2017)
Ticker | Name | Issuer | Net Flows ($,mm) | AUM ($M) | % of AUM | YTD 2017 Net Flows($,M) |
State Street Global Advisors | -7,995.11 | 241,728.41 | -3.20% | -10,784.16 | ||
State Street Global Advisors | -1,013.72 | 10,926.78 | -8.49% | -595.28 | ||
BlackRock | -835.74 | 37,485.21 | -2.18% | 9,505.06 | ||
Invesco PowerShares | -824.36 | 52,152.22 | -1.56% | 915.48 | ||
ProShares | -583.38 | 1,110.04 | -34.45% | 369.51 | ||
US Commodity Funds | -489.69 | 2,290.68 | -17.61% | -579.71 | ||
Credit Suisse | -419.26 | 1,021.85 | -29.09% | -100.31 | ||
BlackRock | -361.56 | 4,628.70 | -7.25% | -124.62 | ||
Direxion | -339.53 | 524.67 | -39.29% | -476.40 | ||
BlackRock | -331.26 | 15,913.10 | -2.04% | -1,219.75 |
Biggest Losers (Year-to-Date)
Ticker | Name | Issuer | Net Flows ($,mm) | AUM ($M) | % of AUM | September 2017 Net Flows($,M) |
State Street Global Advisors | -10,784.16 | 241,728.41 | -4.27% | -7,995.11 | ||
VanEck | -2,908.40 | 7,610.53 | -27.65% | -115.66 | ||
Deutsche Bank | -1,619.09 | 6,882.01 | -19.05% | -165.03 | ||
State Street Global Advisors | -1,413.55 | 18,651.72 | -7.04% | 237.90 | ||
BlackRock | -1,369.03 | 36,596.19 | -3.61% | 159.36 | ||
WisdomTree | -1,275.38 | 8,952.81 | -12.47% | -60.63 | ||
BlackRock | -1,219.75 | 15,913.10 | -7.12% | -331.26 | ||
First Trust | -1,147.23 | 223.25 | -83.71% | -21.71 | ||
BlackRock | -840.76 | 1,280.49 | -39.64% | 5.64 | ||
BlackRock | -807.15 | 17,013.79 | -4.53% | -28.02 |
Asset Classes (September 2017)
| Net Flows ($, mm) | AUM ($, mm) | % of AUM |
U.S. Equity | 5,651.99 | 1,738,271.92 | 0.33% |
International Equity | 9,485.86 | 727,781.49 | 1.30% |
U.S. Fixed Income | 11,243.32 | 507,389.30 | 2.22% |
International Fixed Income | 689.27 | 54,360.95 | 1.27% |
Commodities ETFs | 2,248.77 | 66,037.65 | 3.41% |
Currency | -115.31 | 1,386.34 | -8.32% |
Leveraged | -641.42 | 29,769.77 | -2.15% |
Inverse | -553.72 | 17,729.04 | -3.12% |
Asset Allocation | 148.29 | 7,570.60 | 1.96% |
Alternatives | 15.59 | 4,051.19 | 0.38% |
Total: | 28,172.63 | 3,154,348.25 | 0.89% |
Asset Classes (Year-to-Date)
| Net Flows ($, mm) | AUM ($, mm) | % of AUM |
U.S. Equity | 99,424.35 | 1,738,271.92 | 5.73% |
International Equity | 121,694.03 | 727,781.49 | 16.72% |
U.S. Fixed Income | 90,769.56 | 507,389.30 | 17.85% |
International Fixed Income | 12,760.03 | 54,360.95 | 23.82% |
Commodities ETFs | 2,240.63 | 66,037.65 | 3.40% |
Currency | -152.97 | 1,386.34 | -11.03% |
Leveraged | 1,322.77 | 29,769.77 | 4.44% |
Inverse | 2,569.07 | 17,729.04 | 14.49% |
Asset Allocation | 410.07 | 7,570.60 | 5.42% |
Alternatives | 1,041.96 | 4,051.19 | 25.72% |
Total: | 332,074.82 | 3,154,348.25 | 10.53% |
September 2017 League Table
Issuer | Net Flows ($,M) | AUM ($,M) | % of AUM | YTD 2017 Net Flows($,M) |
BlackRock | $17,393.73 | 1,246,517.71 | 1.40% | $158,157.42 |
Vanguard | $9,450.31 | 782,949.34 | 1.21% | $104,605.00 |
State Street Global Advisors | -$2,208.66 | 557,680.27 | -0.40% | $6,738.09 |
Invesco PowerShares | $764.71 | 128,495.90 | 0.60% | $6,469.11 |
Charles Schwab | $1,785.61 | 86,847.33 | 2.06% | $20,052.42 |
First Trust | -$587.23 | 51,482.83 | -1.14% | $5,961.98 |
WisdomTree | -$188.63 | 43,840.64 | -0.43% | -$146.72 |
Guggenheim | $127.32 | 37,066.39 | 0.34% | $2,853.88 |
VanEck | $142.63 | 32,711.03 | 0.44% | $987.45 |
ProShares | $6.74 | 29,279.21 | 0.02% | $2,716.12 |
Northern Trust | $39.23 | 14,892.72 | 0.26% | $2,196.14 |
PIMCO | $37.87 | 14,395.24 | 0.26% | $1,677.34 |
ALPS | $1.07 | 14,227.55 | 0.01% | $2,098.05 |
Deutsche Bank | $128.95 | 12,728.87 | 1.01% | -$2,048.54 |
Direxion | $171.03 | 11,480.18 | 1.49% | $99.57 |
Fidelity | $26.55 | 7,453.58 | 0.36% | $1,700.37 |
UBS | -$5.83 | 7,211.85 | -0.08% | $208.20 |
Barclays Capital | $285.49 | 6,740.41 | 4.24% | $522.73 |
Global X | $20.21 | 6,599.39 | 0.31% | $2,491.36 |
Goldman Sachs | -$410.47 | 5,843.81 | -7.02% | $2,493.17 |
JPMorgan | -$162.77 | 5,775.96 | -2.82% | $1,105.05 |
Credit Suisse | -$437.31 | 4,666.91 | -9.37% | $1,577.33 |
Exchange Traded Concepts | $301.06 | 4,062.41 | 7.41% | $1,551.09 |
US Commodity Funds | -$185.32 | 3,561.93 | -5.20% | -$633.20 |
IndexIQ | $12.32 | 2,949.75 | 0.42% | $557.91 |
ETF Securities | $216.55 | 2,573.73 | 8.41% | $196.99 |
OppenheimerFunds | -$19.43 | 2,282.22 | -0.85% | $591.06 |
Victory Capital Management | $0.00 | 1,853.31 | 0.00% | $819.79 |
ETF Managers Group | -$3.82 | 1,475.99 | -0.26% | $458.20 |
KraneShares | $42.06 | 1,370.81 | 3.07% | $905.75 |
Columbia | $11.64 | 1,256.40 | 0.93% | $138.79 |
Pacer Financial | -$1.48 | 1,187.66 | -0.12% | $347.19 |
AdvisorShares | $7.55 | 1,109.97 | 0.68% | $42.68 |
The Principal Financial Group | $0.00 | 1,078.67 | 0.00% | $456.16 |
Millington Securities Inc | $558.69 | 989.90 | 56.44% | -$86.67 |
Virtus | $70.58 | 949.48 | 7.43% | $471.16 |
John Hancock | -$1.82 | 888.81 | -0.20% | $149.52 |
CitiGroup | $624.59 | 775.46 | 80.54% | $361.12 |
Franklin ETF Trust | $17.98 | 761.14 | 2.36% | $148.79 |
Northern Lights | $38.08 | 628.51 | 6.06% | $474.73 |
Cambria | $25.11 | 621.10 | 4.04% | $241.78 |
Highland Capital Management | -$491.92 | 585.00 | -84.09% | $119.78 |
Legg Mason | $186.88 | 562.63 | 33.22% | $397.87 |
FQF Trust | $11.37 | 554.03 | 2.05% | $72.96 |
ARK | $26.70 | 396.26 | 6.74% | $278.46 |
Swedish Export Credit | $0.00 | 342.12 | 0.00% | -$10.42 |
Nationwide Fund Advisors | $0.00 | 335.09 | 0.00% | $227.49 |
Janus Henderson | $227.49 | 282.58 | 80.50% | $142.71 |
Hartford | $64.76 | 275.41 | 23.51% | $114.32 |
Alpha Architect | $1.56 | 262.73 | 0.59% | $100.00 |
Horizons | $9.88 | 224.93 | 4.39% | $74.63 |
Davis | $10.45 | 216.73 | 4.82% | $170.26 |
Nuveen | $9.98 | 177.76 | 5.61% | $34.34 |
Teucrium | -$9.39 | 164.44 | -5.71% | $38.83 |
Elkhorn | $0.00 | 154.82 | 0.00% | $15.10 |
Arrow Investment Advisors | $3.60 | 134.86 | 2.67% | $7.54 |
Merk | $3.04 | 134.72 | 2.26% | $21.79 |
US Global Investors | $0.68 | 123.79 | 0.55% | $57.85 |
Amplify | $42.10 | 115.14 | 36.56% | $96.44 |
ClearShares | -$141.10 | 102.44 | -137.74% | $98.35 |
Reality Shares | $18.60 | 79.61 | 23.36% | $31.21 |
Academy Funds | $2.54 | 78.38 | 3.24% | -$16.14 |
Montage Managers | -$0.15 | 76.50 | -0.20% | $30.35 |
OSI ETF Trust | $2.90 | 68.88 | 4.21% | $14.58 |
Strategy Shares | $1.97 | 67.07 | 2.94% | $59.83 |
BMO | $13.45 | 65.85 | 20.42% | $45.81 |
ACSI Funds | $22.81 | 47.01 | 48.53% | $0.00 |
TrimTabs Asset Management | $19.42 | 42.01 | 46.23% | $27.15 |
Aptus Capital Advisors | $22.44 | 37.14 | 60.41% | $28.82 |
Morgan Stanley | $0.00 | 32.48 | 0.00% | $3.93 |
OBP Capital LLC | $1.24 | 30.18 | 4.11% | $27.52 |
AlphaMark Advisors | $2.62 | 25.87 | 10.13% | $0.00 |
Validea Capital Management | $7.38 | 25.07 | 29.44% | $13.93 |
Janus | $0.85 | 25.04 | 3.39% | $1.36 |
Point Bridge Capital | $0.00 | 18.19 | 0.00% | $22.81 |
Diamond Hill | $0.00 | 17.75 | 0.00% | -$1.56 |
Renaissance Capital | $0.03 | 16.66 | 0.18% | -$1.13 |
Natixis | $1.44 | 15.78 | 9.13% | $0.00 |
Premise Capital | -$11.89 | 14.37 | -82.77% | $8.22 |
GraniteShares | $1.41 | 12.88 | 10.94% | $5.10 |
CSOP | $0.00 | 9.87 | 0.00% | -$0.57 |
LocalShares | $0.00 | 8.17 | 0.00% | $0.00 |
StrongVest | -$0.01 | 7.64 | -0.13% | $6.29 |
USCF Advisers | $0.00 | 4.93 | 0.00% | -$0.83 |
AlphaClone | $0.00 | 4.83 | 0.00% | $1.47 |
SerenityShares | $0.00 | 2.62 | 0.00% | $0.01 |
Transamerica | $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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