It may be data from just one issuer, but September inflows to
) PowerShares ETF arm highlight an already known trend: Investors
are pouring cash
into income-oriented funds
at a rapid pace.
Of the 10 PowerShares ETFs that saw the largest inflows in
four are clearly income products
. A case can be made that a fifth, the wildly popular PowerShares
S&P 500 Low Volatility Portfolio (NYSE:
), is a dividend ETF as well. SPLV, the largest low volatility
ETF on the market, allocates a combined 75 percent of its weight
to consumer staples, utilities and health care names. Those are
all sectors prized by income investors.
SPLV also has a 30-day SEC yield of just over three percent.
By comparison, the 30-day SEC yield on the SPDR S&P 500
) is just 1.98 percent. SPLV ranked fourth among PowerShares ETFs
in terms of September inflows.
The PowerShares DB Commodity Index Tracking Fund (NYSE:
) lead the way in terms of September inflows to PowerShares ETFs
with $322 million. The PowerShares Senior Loan Portfolio (NYSE:
), one of the most
prodigious gatherers of assets this year
, raked in $202 million to end September with $927 in AUM,
according to PowerShares. Money has kept flowing to BKLN, which
now has almost $1.2 billion in assets. BKLN, which pays a monthly
dividend, has a 30-day SEC yield of 4.4 percent.
The PowerShares Preferred Portfolio (NYSE:
) was fifth-best among the firm's ETFs in terms of gaining assets
in September. PGX haulded in $61 million in cash to end September
with $1.99 billion in assets. As further proof the yield chase is
still on and going strong, PGX is now close to $2.1 billion in
AUM. PGX has a 30-day SEC yield of 6.43 percent and also pays a
Not surprisingly, the PowerShares Emerging Markets Sovereign
Debt Portfolio (NYSE:
) appears on the list as well. PCY, the second-largest ETF
offering exposure to dollar-denominated emerging markets
has been prime beneficiary
of robust inflows to EM bond funds.
PCY hauled in $55 million in September to finish the month
with $2.27 billion. As of October 31, PCY had over $2.8 billion
in assets. Another monthly dividend payer, PCY has a 30-day SEC
yield of four percent.
The 30-day SEC yield on the PowerShares Insured National
Municipal Bond Portfolio (NYSE:
) is just 2.98 percent, investors still poured $50 million into
the ETF in September. PZA ended the month with $855 million in
assets. October has been even better as PZA now has $931.7
million in assets.
The other ETFs to make the list of top-10 PowerShares asset
gainers in September included two commodities funds, the
PowerShares India Portfolio (NYSE:
) and the PowerShares DWA Technical Leaders Portfolio (NYSE:
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