Aug. ETF Flows: GLD Shines On QE3 Hopes

By
A A A
Share |

The SPDR Gold Shares (NYSEArca:GLD), the $68 billion bullion ETF, was the most popular exchange-traded fund last month, as investors began positioning themselves for the possibility of the Fed launching another round of quantitative easing aimed at reviving flagging economic growth.

Overall, investors poured $5.75 billion into ETFs and, including the Dow Jones industrial average's 0.6 percent gain last month, total assets rose 2.2 percent to almost $1.235 trillion, according to data compiled by IndexUniverse. That total was just shy of the all-time high of $1.240 trillion reached on Wednesday, Aug. 29.

GLD was the leading edge of those flows-pulling in almost $2 billion in fresh assets-in a clear sign investors are starting to believe the Federal Reserve will embark on a new round of bond buying called 'quantitative easing.'

The purchases are designed to keep yields low and encourage borrowing, while also boosting asset prices, such as stocks, bonds and commodities. Gold prices get a shot in the arm because QE has the effect of weakening the dollar, making the price of dollar-priced gold go up. Gold futures spiked by 1.9 percent last Friday after Bernanke hinted at the rising probability of QE3.

The No. 2 fund on IndexUniverse's 'Top Gainers' table was the Vanguard MSCI Emerging Markets ETF (NYSEArca:VWO), followed by the iShares Barclays 3-7 Year Treasury Bond Fund (NYSEArca:IEI). VWO gathered $824.3 million, while IEI added $752.1 million.

Top Gainers

Ticker Top Gainers July 2012 Issuer August 2012 Flows

August 2012 AUM

($, M)

August 2012 Turnover
GLD SPDR Gold SSgA 1,989.09 68,320.23 30,240.21
VWO Vanguard MSCI Emerging Markets Vanguard 824.26 53,532.20 16,735.28
IEI iShares Barclays 3-7 Year Treasury Bond BlackRock 752.12 2,945.25 1,551.45
VXX iPath S&P 500 VIX Short-Term Futures ETN Barclays Capital 642.53 2,058.12 9,953.17
LQD iShares iBoxx $ Investment Grade Corporate Bond BlackRock 595.88 24,033.19 5,433.28
QQQ PowerShares QQQ Invesco PowerShares 575.11 35,025.23 45,769.58
UST ProShares Ultra 7-10 Year Treasury ProShares 557.12 582.37 1,158.93
XLK Technology Select SPDR SSgA 552.63 10,119.62 5,437.25
JNK SPDR Barclays Capital High Yield Bond SSgA 369.90 11,939.95 3,170.48
VNQ Vanguard REIT Vanguard 344.46 14,154.11 2,623.09

Asset Classes

Aug 2012 Flows By Asset Class Net Flows ($, M) AUM ($, M) % of AUM
U.S. Equity -4,115.25 567,398.80 -0.73%
International Equity 1,910.73 274,638.18 0.70%
U.S. Fixed Income 3,889.62 218,456.14 1.78%
International Fixed Income 556.05 19,710.06 2.82%
Commodities 2,365.66 112,702.97 2.10%
Currency -118.33 2,875.76 -4.11%
Leveraged -727.09 12,447.27 -5.84%
Inverse 1,226.33 19,794.31 6.20%
Asset Allocation 65.94 2,099.97 3.14%
Alternatives 693.38 4,498.01 15.42%
Total: 5,747.05 1,234,621.48 0.47%

VWO Spells Vanguard Rising

VWO's place high up on the inflows list continues to be a fitting metaphor for the rise of Vanguard.

The Valley Forge, Pa.-based company created by John Bogle is steadily climbing up the ETF League Table, even as Bogle himself rails against the dangers ETFs pose to investors by tempting them to trade frequently enough to seriously harm returns.

In any case, the company's low-cost, pure-beta funds continue to attract investors. Vanguard, the No. 3 U.S. ETF company by assets, hauled in $3.48 billion, while BlackRock's iShares unit added almost $2 billion. State Street Global Advisors, the sponsor behind GLD and the No. 2 ETF firm, meanwhile had outflows of $3.19 billion, the result largely from two of its big equity funds, including SPY.

iShares, the world's biggest ETF firm, has total assets under management of more than $500 billion, while SSgA and Vanguard manage ETF assets of $301 billion and $221 billion, respectively.

League Table

August 2012 League Table
Issuer Net Flows AUM ($, M) % of AUM Turnover
BlackRock 1,993.67 501,565.00 0.40% 263,303.26
SSgA - 3,187.18 301,345.98 -1.06% 480,142.92
Vanguard 3,478.46 221,443.50 1.57% 38,836.81
Invesco PowerShares 1,099.69 72,868.59 1.51% 54,283.68
Van Eck -249.65 24,995.70 -1.00% 22,429.73
ProShares 585.65 22,535.08 2.60% 52,798.17
WisdomTree 288.28 15,862.97 1.82% 2,785.21
Guggenheim 19.27 11,429.97 0.17% 5,022.76
First Trust 63.35 7,692.09 0.82% 1,289.37
PIMCO 312.11 7,252.84 4.30% 2,090.19
Charles Schwab 126.80 7,229.73 1.75% 1,205.60
Barclays Capital 578.84 7,221.32 8.02% 11,717.47
Direxion -87.90 6,127.06 -1.43% 37,235.39
JPMorgan - 5,133.10 0.00% 632.98
ALPS 231.47 4,136.84 5.60% 679.58
ETF Securities 87.45 3,973.70 2.20% 863.54
US Commodity Funds 65.34 3,204.20 2.04% 10,880.18
UBS 2.37 1,302.39 0.18% 289.21
Northern Trust 143.50 1,256.79 11.42% 205.42
Global X 5.11 1,247.83 0.41% 321.70
Merrill Lynch -22.50 1,210.91 -1.86% 187.36
Emerging Global Shares 29.26 715.76 4.09% 82.93
VelocityShares 42.41 670.35 6.33% 4,482.02
AdvisorShares 17.17 648.47 2.65% 325.42
GreenHaven -13.44 505.26 -2.66% 57.50
IndexIQ 16.45 500.74 3.29% 93.38
Pacer Financial -18.09 424.70 -4.26% 34.12
Credit Suisse 1.65 415.24 0.40% 101.78
Russell -45.21 274.08 -16.49% 196.24
Goldman Sachs - 272.26 0.00% 20.43
Precidian - 191.06 0.00% 84.15
Fidelity 181.96 182.43 99.74% 24.50
RBS Securities 7.90 176.29 4.48% 47.88
Deutsche Bank - 147.71 0.00% 10.04
Teucrium -26.91 114.05 -23.59% 255.78
Jefferies - 80.11 0.00% 8.36
Exchange Traded Concepts 18.67 70.51 26.48% 33.16
FFCM -3.42 56.81 -6.01% 15.85
Morgan Stanley - 30.79 0.00% 1.38
Columbia - 25.51 0.00% 5.18
Pax World - 19.15 0.00% 3.99
BNP Paribas - 17.34 0.00% 0.45
Factor Advisor - 15.64 0.00% 3.74
Arrow Investment Advisors 1.89 13.32 14.21% 6.66
Huntington Strategy Shares 1.95 12.48 15.62% 4.31
CitiGroup 0.67 5.86 11.51% 5.00
Scottrade - - - -

Equities Out Of Favor
The three-least-popular ETFs last month were all U.S.-focused equity funds, which fueled outflows from U.S. equities of $4.12 billion.

The $105 billion SPDR S&P 500 ETF (NYSEArca:SPY), the world's biggest exchange-traded fund, recorded redemptions of $4.37 billion, while the iShares Russell 2000 Index Fund (NYSEArca:IWM) and the SPDR Dow Jones Industrial Average Trust (NYSEArca:DIA) had outflows of $1.35 billion and $713.8 million, respectively.

As noted, SPY is the biggest ETF in the world, and the most heavily traded and liquid as well.

Biggest Losers

Ticker August 2012 Biggest Asset Losers Issuer August 2012 Flows August 2012 AUM ($M) August 2012 Turnover
SPY SPDR S&P 500 SSgA - 4,373.55 105,930.83 339,556.30
IWM iShares Russell 2000 BlackRock - 1,348.66 15,151.16 64,316.43
DIA SPDR Dow Jones Industrial Average Trust SSgA -713.80 11,324.38 12,927.24
UWM ProShares Ultra Russell 2000 ProShares -366.64 127.92 1,349.39
XLP Consumer Staples Select SPDR SSgA -358.40 5,840.60 4,205.04
GDX Market Vectors Gold Miners Van Eck -352.40 8,523.48 12,031.10
TLT iShares Barclays 20+ Year Treasury Bond BlackRock -346.21 3,437.81 19,822.69
XLY Consumer Discretionary Select SPDR SSgA -281.30 3,213.31 4,534.20
FXI iShares FTSE China 25 BlackRock -268.59 4,202.16 8,511.23
OIH Market Vectors Oil Services Van Eck -262.51 957.88 3,251.87

ETF Giants Table

Ticker August 2012 Biggest Asset Losers Issuer August 2012 Flows August 2012 AUM ($M) August 2012 Turnover
SPY SPDR S&P 500 SSgA -4,373.55 105,930.83 339,556.30
GLD SPDR Gold SSgA 1,989.09 68,320.23 30,240.21
VWO Vanguard MSCI Emerging Markets Vanguard 824.26 53,532.20 16,735.28
EFA iShares MSCI EAFE BlackRock - 35,353.02 19,369.60
QQQ PowerShares QQQ Invesco PowerShares 575.11 35,025.23 45,769.58
EEM iShares MSCI Emerging Markets BlackRock -105.89 34,256.27 33,554.48
IVV iShares S&P 500 BlackRock -163.89 31,309.81 9,780.76
LQD iShares iBoxx $ Investment Grade Corporate Bond BlackRock 595.88 24,033.19 5,433.28
TIP iShares Barclays TIPS Bond BlackRock 326.28 23,416.48 2,395.06
VTI Vanguard Total Stock Market Vanguard 64.86 22,488.71 2,058.68

ETF Giants Table

Aug 2012 Liquidity Mavens
Ticker August 2012 Biggest Asset Losers Issuer August 2012 Flows August 2012 AUM ($M) August 2012 Turnover
SPY SPDR S&P 500 SSgA -4,373.55 105,930.83 339,556.30
IWM iShares Russell 2000 BlackRock -1,348.66 15,151.16 64,316.43
QQQ PowerShares QQQ Invesco PowerShares 575.11 35,025.23 45,769.58
EEM iShares MSCI Emerging Markets BlackRock -105.89 34,256.27 33,554.48
GLD SPDR Gold SSgA 1,989.09 68,320.23 30,240.21
TLT iShares Barclays 20+ Year Treasury Bond BlackRock -346.21 3,437.81 19,822.69
EFA iShares MSCI EAFE BlackRock - 35,353.02 19,369.60
VWO Vanguard MSCI Emerging Markets Vanguard 824.26 53,532.20 16,735.28
XLE Energy Select SPDR SSgA 194.65 7,503.49 15,197.02
EWZ iShares MSCI Brazil BlackRock - 7,370.41 15,147.75

Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights reserved

Don't forget to check IndexUniverse.com's ETF Data section.

Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , ETFs

Referenced Stocks: DIA , GLD , IEI , IWM , SPY

IndexUniverse

IndexUniverse

More from IndexUniverse:

Related Videos

Stocks

Referenced

Most Active by Volume

72,157,294
  • $61.36 ▼ 2.65%
56,535,455
  • $34.92 ▼ 3.78%
49,608,479
  • $4.42 ▼ 3.07%
49,328,445
  • $25.91 ▼ 3.18%
48,932,529
  • $16.37 ▲ 0.49%
38,182,422
  • $3.17 ▼ 1.55%
33,297,581
  • $73.86 ▲ 1.37%
32,790,375
  • $47.43 ▼ 1.02%
As of 4/23/2014, 04:07 PM