ETFs add $12b last week

ETF Hub wrote a column · Feb 11, 2022 14:35

Investors added a net $12.1 billion in new money into U.S.-listed ETFs last week, driven mainly by a resurgence in three of the biggest broad-market funds.

The U.S. ETF industry has gained just over $51.4 billion in net new assets this year, and has just over $7 trillion in assets under management.
--- according to ETF.com data provider FactSet.

Broad Equity (Mostly) Spikes Back

The $Vanguard S&P 500 ETF (VOO.US)$ dominated the top of the inflows chart, gaining just shy of $11.7 billion in net assets on the week.

In distant second was the $Invesco QQQ Trust (QQQ.US)$, which added $2.5 billion as the tech-heavy $Nasdaq Composite Index (.IXIC.US)$ spurned ongoing fears of aggressive Fed rate hikes and a dismal Meta Platforms earnings report to gain 4.38% on the week. The $iShares Core S&P 500 ETF (IVV.US)$ rounded out the top three, with $2.25 billion in new assets.

However, the $SPDR S&P 500 ETF (SPY.US)$ lost $10.4 billion on the week to continue its slide. The oldest U.S.-listed ETF has lost $21.4 billion in assets year-to-date.

SPY tends to be used as a short-term tool by traders and is more vulnerable to volatility-related sell-offs than IVV or VOO, which have lower expense ratios and are generally used as core equity holdings in long-term investment portfolios.

Split Decisions Leave US Bond Flows Flat

The U.S. fixed income asset class ended the week with a little more than $1 billion in outflows, with investors buying and selling related ETFs to both ends of the inflow and outflow lists.

This Jekyll & Hyde pattern is clear with the $Ishares Iboxx $ High Yield Corporate Bond Etf (HYG.US)$ gaining nearly $702 million on the week, while the $SPDR Bloomberg High Yield Bond ETF (JNK.US)$ lost $802 million, despite the two having substantial overlap in the junk bond space.

Funds following bonds with less than a year to maturity flourished as the $SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL.US)$ and the $Pimco Etf Trust Enhanced Short Maturity Etf (MINT.US)$ gained just over $2.1 billion in the period combined. Meanwhile, the $Vanguard Short-Term Bond ETF (BSV.US)$, which tracks bonds with between one and five years to maturity, lost $1.9 billion.