In what was the worst month for U.S. stocks since May 2012,
global exchange traded products, ETFs and ETNs, shed $15 billion
in assets last month after raking in $44 billion during July.
Funds with U.S. equity exposure lost $14.5 billion, but $13.8
billion of that figure was pulled from the SPDR S&P 500
), according to BlackRock data.
July ETF Inflows Top $44 Billion
"Investors could also be positioning for increased market
volatility in September. There are a number of upcoming events
and announcements with implications for the global economy
including the release of US Non-Farm Payroll numbers ahead of the
highly anticipated next meeting of the FOMC, the German
elections, meetings of other major Central Banks, US debt ceiling
negotiations, and the escalating conflict in Syria," said
BlackRock in its monthly "ETF Landscape" report.
) is the world's largest asset manager and parent company of
iShares, the world's largest ETF sponsor.
BlackRock noted that talk of Federal Reserve tapering prompted
outflows of $3.5 billion last month from emerging markets. U.S.
and Japan-focused funds continue to lead in terms of year-to-date
"Year-to-date (YTD) flows are now $128.1bn, behind the
previous record high of $139.9bn through August 2012. However,
the 2013 composition remains much different with Equity gathering
80% more than last year, Fixed Income just a third as much and
Commodity outflows adding a significant drag," said
glimmers of hope among emerging markets ETFs
,investors have pulled $11.1 billion from developing world equity
funds this year year.
Gold ETFs lost another $700 million last month despite
impressive performances from funds such as the SPDR Gold Shares
) and iShares Gold Trust (NYSE:
Overall outflows from U.S.-listed ETFs were $17.5 billion last
month, the largest number since early 2010, according to
BlackRock data. Europe and Asia-Pacific equivalents combined for
$3 billion of inflows.
With the departure of $13.8 billion from SPY, the WisdomTree
Japan Hedged Equity Fund (NYSE:
) is now the top
asset-gathering ETF this year
with inflows of $8.44 billion. The iShares MSCI Japan ETF (NYSE:
) and the iShares Russell 2000 ETF (NYSE:
) are in second and third with inflows of $4.65 billion and $4.45
billion, respectively. The Vanguard Total Stock Market ETF (NYSE:
) has hauled in $4.27 billion in assets this year.
Among bond ETFs, the Vanguard Short-Term Bond ETF (NYSE:
) and the PowerShares Senior Loan Portfolio (NYSE:
) have proven durable amid outflows from bond funds. BSV and BKLN
have brought in almost $7.9 billion in assets this year. The
Financial Select Sector SPDR (NYSE:
) is this year's top asset-gathering sector ETF with $3.86
billion worth of inflows, according to BlackRock.
The worst offenders among outflows include the SPDR Gold
) at almost $20.1 billion in lost assets this year. The iShares
MSCI Emerging Markets ETF (NYSE:
) and the iShares iBoxx $ Investment Grade Corporate Bond ETF
) have lost $14.3 billion combined through the end of August.
Other outflow offenders include the iShares TIPS Bond ETF
), Vanguard Emerging Markets ETF (NYSE:
) and the iShares MSCI Brazil Capped ETF (NYSE:
For more on ETFs, click
Disclosure: Author is long DXJ, IAU and VWO.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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