Investors plowed more than $37 billion into U.S.-listed ETFs in
September, the most since $29 billion of inflows in January of this
year, as markets took to heart the Federal Reserve's latest move to
stimulate the economy with a fresh round of bond buying, and took
on risk, particularly in equities.
Overall, total U.S.-listed ETF assets rose 5.3 percent to $1.301
trillion from $1.235 trillion at the end of August, according to
data compiled by IndexUniverse. At the end of September-and at the
end of the third quarter-ETF assets were just shy of a record of
nearly $1.311 trillion set on Wednesday, Sept. 19.
More than $30 billion of the September flows were in stock
funds, with $22 billion of those targeting U.S. equities. In the
third quarter, inflows totaled nearly $60 billion, just topping
first-quarter inflows of $56 billion and nearly tripling
second-quarter flows of $20.41 billion. Total assets at the end of
last month were up 22.5 percent from the end of 2011, and up a
third from $973.5 million a year ago.
The simple possibility of the Fed's third round of quantitative
easing-QE3 in market-speak-was enough to bring investors back in
droves in the third quarter and in September in particular. Similar
easy-money moves by the European Central Bank and by the Bank of
Japan aimed at supporting fragile growth in the global economy also
encouraged investors to take risks.
| Sept. 2012 Flows By Asset & Total |
Net Flows ($, mm) |
AUM ($, mm) |
% of AUM |
| U.S. Equity |
22,290.02 |
599,373.64 |
3.72% |
| International Equity |
8,492.31 |
294,621.73 |
2.88% |
| U.S. Fixed Income |
2,511.72 |
221,485.75 |
1.13% |
| International Fixed Income |
1,063.86 |
21,051.47 |
5.05% |
| Commodities |
2,987.62 |
123,156.86 |
2.43% |
| Currency |
111.00 |
3,019.01 |
3.68% |
| Leveraged |
- 60.01 |
13,064.48 |
-0.46% |
| Inverse |
- 105.71 |
18,989.76 |
-0.56% |
| Asset Allocation |
93.10 |
2,203.90 |
4.22% |
| Alternatives |
213.32 |
4,079.18 |
5.23% |
| Total: |
37,597.24 |
1,301,045.78 |
2.89% |
| Q3c2012Flows By Asset & Total |
Net Flows ($, mm) |
AUM ($, mm) |
% of AUM |
| U.S. Equity |
30,740.86 |
599,373.64 |
5.13% |
| International Equity |
13,611.98 |
294,621.73 |
4.62% |
| U.S. Fixed Income |
6,618.08 |
221,485.75 |
2.99% |
| International Fixed Income |
3,157.54 |
21,051.47 |
15.00% |
| Commodities |
4,221.47 |
123,415.51 |
3.42% |
| Currency |
-3.06 |
3,019.01 |
-0.10% |
| Leveraged |
-1,463.82 |
13,064.48 |
-11.20% |
| Inverse |
1,629.67 |
18,989.76 |
8.58% |
| Asset Allocation |
239.75 |
2,212.82 |
10.83% |
| Alternatives |
1,189.93 |
4,079.18 |
29.17% |
| Total: |
59,942.40 |
1,301,313.34 |
4.61% |
Popular Funds
Some of the market's biggest and most liquid equities funds were
the beneficiaries of all the central bank policies, led by the SPDR
S&P 500 ETF (NYSEArca:SPY), which gathered $10.5 billion in
September and just over $9 billion in the entire third quarter.
Gold was also a beneficiary of QE3, as investors again fretted
that with the dollar weakening, gold and other precious metals
would become more reliable stores of value.
SPDR Gold Shares (NYSEArca:GLD), the $75 billion bullion fund,
hauled in $1.8 billion in September and $2.41 billion in all of the
third quarter.
Gold is quickly headed for $1,900 a troy ounce and, as we
reported separately, silver-related ETFs were among the
very-best-performing ETFs in the third quarter, rising by anywhere
from around a quarter to a third in the June-September quarter.
| Ticker |
Name |
Issuer |
September 2012 Flows |
September 2012 AUM ($, M) |
September 2012 Turnover |
| SPY |
SPDR S&P 500 |
SSgA |
10,499.71 |
118,358.95 |
371,115.80 |
| IWM |
iShares Russell 2000 |
BlackRock |
2,799.65 |
18,363.40 |
71,186.47 |
| GLD |
SPDR Gold |
SSgA |
1,804.52 |
75,391.45 |
41,887.73 |
| VWO |
Vanguard MSCI Emerging Markets |
Vanguard |
1,687.87 |
57,351.49 |
18,447.45 |
| IJH |
iShares S&P 400 MidCap |
BlackRock |
1,283.12 |
12,273.44 |
3,016.36 |
| EWZ |
iShares MSCI Brazil |
BlackRock |
1,021.70 |
8,556.77 |
16,666.26 |
| IYR |
iShares Dow Jones U.S. Real Estate |
BlackRock |
991.40 |
4,851.99 |
10,810.55 |
| HYG |
iShares iBoxx $ High Yield Corporate
Bond |
BlackRock |
990.27 |
17,233.78 |
6,553.00 |
| XLF |
Financial Select SPDR |
SSgA |
962.82 |
7,970.51 |
18,290.82 |
| EEM |
iShares MSCI Emerging Markets |
BlackRock |
962.37 |
37,245.42 |
39,147.52 |
| Ticker |
Name |
Issuer |
Q3 2012 Flows |
Q3 2012 AUM ($, M) |
Q3 2012 Turnover |
| SPY |
SPDR S&P 500 |
SSgA |
9,027.48 |
118,358.95 |
1,111,111.51 |
| VWO |
Vanguard MSCI Emerging Markets |
Vanguard |
4,024.36 |
57,351.49 |
53,415.38 |
| IWM |
iShares Russell 2000 |
BlackRock |
3,061.42 |
18,363.40 |
212,469.30 |
| GLD |
SPDR Gold |
SSgA |
2,408.77 |
75,391.45 |
96,906.32 |
| HYG |
iShares iBoxx $ High Yield Corporate
Bond |
BlackRock |
2,141.03 |
17,233.78 |
18,240.05 |
| IJH |
iShares S&P 400 MidCap |
BlackRock |
1,616.13 |
12,273.44 |
5,945.42 |
| JNK |
SPDR Barclays Capital High Yield Bond |
SSgA |
1,425.68 |
12,452.98 |
11,340.63 |
| XLF |
Financial Select SPDR |
SSgA |
1,416.44 |
7,970.51 |
47,258.09 |
| VNQ |
Vanguard REIT |
Vanguard |
1,356.50 |
14,426.52 |
9,464.62 |
| OEF |
iShares S&P 100 |
BlackRock |
1,117.83 |
4,995.22 |
4,277.77 |
SSgA, iShares … And FlexShares
State Street Global Advisors came out on top in the
asset-gathering game in September, pulling in more than $16 billion
last month. BlackRock's iShares, the biggest ETF company in the
world, meanwhile gathered $18.3 billion in assets in the third
quarter-more than any other ETF fund sponsor. For the first time in
quite awhile, Vanguard didn't top the asset-gathering.
At the end of the third quarter, iShares had assets of almost
$526 billion, SSgA had about $327 billion and Vanguard had just
over $230 billion.
One relatively new ETF firm that had a solid third quarter was
FlexShares, the unit of Chicago-based Northern Trust.
The company, which has a lineup of six funds, including three
that canvass the global equities universe through the lens of
small-cap/value tilts, gathered $652 million in the quarter and
ended the period with more than $1.6 billion in assets. It launched
its first four funds in September 2011.
| September 2012 League
Table |
| Issuer |
Net Flows |
AUM ($M) |
% of AUM |
Turnover |
| BlackRock |
12,395.90 |
525,907.71 |
2.36% |
300,381.70 |
| SSgA |
16,344.36 |
327,175.41 |
5.00% |
533,030.29 |
| Vanguard |
5,027.43 |
230,332.89 |
2.18% |
43,566.60 |
| Invesco PowerShares |
378.30 |
73,951.61 |
0.51% |
57,918.35 |
| Van Eck |
1,245.86 |
28,115.34 |
4.43% |
28,692.43 |
| ProShares |
-69.10 |
22,354.99 |
-0.31% |
55,956.75 |
| WisdomTree |
452.05 |
16,783.20 |
2.69% |
3,322.81 |
| Guggenheim |
351.96 |
11,978.16 |
2.94% |
7,687.39 |
| First Trust |
163.74 |
8,058.11 |
2.03% |
1,470.43 |
| PIMCO |
519.74 |
7,802.90 |
6.66% |
2,490.15 |
| Charles Schwab |
202.17 |
7,562.39 |
2.67% |
1,119.33 |
| Barclays Capital |
70.18 |
6,828.30 |
1.03% |
11,553.41 |
| Direxion |
-42.93 |
6,210.87 |
-0.69% |
37,050.57 |
| JPMorgan |
- |
5,233.77 |
0.00% |
572.55 |
| ALPS |
182.72 |
4,376.88 |
4.17% |
616.18 |
| ETF Securities |
40.46 |
4,353.29 |
0.93% |
1,102.65 |
| US Commodity Funds |
-249.76 |
3,026.99 |
-8.25% |
10,804.91 |
| Northern Trust |
335.62 |
1,621.67 |
20.70% |
328.68 |
| Global X |
103.47 |
1,444.76 |
7.16% |
541.48 |
| UBS |
59.90 |
1,270.21 |
4.72% |
357.94 |
| Merrill Lynch |
34.87 |
1,235.52 |
2.82% |
189.64 |
| Emerging Global Shares |
13.16 |
773.48 |
1.70% |
94.68 |
| VelocityShares |
45.93 |
693.02 |
6.63% |
5,931.20 |
| AdvisorShares |
19.95 |
663.80 |
3.01% |
331.02 |
| IndexIQ |
35.49 |
544.77 |
6.52% |
151.19 |
| GreenHaven |
7.71 |
516.67 |
1.49% |
47.61 |
| Pacer Financial |
1.37 |
438.26 |
0.31% |
62.90 |
| Credit Suisse |
24.73 |
437.73 |
5.65% |
100.51 |
| RBS Securities |
17.32 |
199.21 |
8.70% |
81.88 |
| Precidian |
- |
193.02 |
0.00% |
77.15 |
| Russell |
-96.31 |
184.23 |
-52.28% |
154.75 |
| Fidelity |
- |
184.13 |
0.00% |
22.63 |
| Deutsche Bank |
- |
150.40 |
0.00% |
9.41 |
| Teucrium |
-27.41 |
82.11 |
-33.39% |
174.13 |
| Exchange Traded Concepts |
8.51 |
79.90 |
10.65% |
26.62 |
| Jefferies |
-4.62 |
79.34 |
-5.83% |
7.51 |
| FFCM |
-4.68 |
51.52 |
-9.09% |
30.24 |
| Morgan Stanley |
- |
31.87 |
0.00% |
2.33 |
| Columbia |
- |
25.97 |
0.00% |
3.44 |
| Pax World |
2.67 |
22.29 |
11.97% |
3.78 |
| Arrow Investment Advisors |
3.90 |
17.44 |
22.34% |
10.05 |
| BNP Paribas |
- |
17.18 |
0.00% |
0.42 |
| Factor Advisor |
- |
15.72 |
0.00% |
3.91 |
| Huntington Strategy Shares |
0.67 |
13.39 |
5.04% |
0.94 |
| CitiGroup |
1.92 |
5.34 |
35.93% |
6.21 |
| Goldman Sachs |
- |
- |
- |
34.52 |
| Q3 2012League Table |
| Issuer |
Net Flows |
AUM ($M) |
% of AUM |
Turnover |
| BlackRock |
18,323.61 |
525,907.71 |
3.48% |
853,000.92 |
| SSgA |
17,540.57 |
327,175.41 |
5.36% |
1,569,322.85 |
| Vanguard |
12,792.95 |
230,332.89 |
5.55% |
121,793.61 |
| Invesco PowerShares |
3,036.92 |
73,951.61 |
4.11% |
177,203.69 |
| Van Eck |
1,391.97 |
28,115.34 |
4.95% |
72,325.87 |
| ProShares |
524.92 |
22,354.99 |
2.35% |
170,857.45 |
| WisdomTree |
1,033.18 |
16,783.20 |
6.16% |
9,103.13 |
| Guggenheim |
536.10 |
11,978.16 |
4.48% |
17,906.85 |
| First Trust |
350.09 |
8,058.11 |
4.34% |
4,638.65 |
| PIMCO |
1,500.56 |
7,802.90 |
19.23% |
6,775.23 |
| Charles Schwab |
535.49 |
7,562.39 |
7.08% |
3,562.42 |
| Barclays Capital |
723.05 |
6,828.30 |
10.59% |
37,598.48 |
| Direxion |
-257.45 |
6,210.87 |
-4.15% |
117,990.02 |
| JPMorgan |
- |
5,233.77 |
0.00% |
2,171.00 |
| ALPS |
701.75 |
4,376.88 |
16.03% |
2,048.88 |
| ETF Securities |
130.14 |
4,353.29 |
2.99% |
2,469.84 |
| US Commodity Funds |
-391.20 |
3,026.99 |
-12.92% |
33,800.99 |
| Northern Trust |
652.19 |
1,621.67 |
40.22% |
816.93 |
| Global X |
95.20 |
1,444.76 |
6.59% |
1,150.34 |
| UBS |
165.45 |
1,270.21 |
13.03% |
945.33 |
| Merrill Lynch |
5.55 |
1,235.52 |
0.45% |
585.25 |
| Emerging Global Shares |
39.30 |
773.48 |
5.08% |
253.25 |
| VelocityShares |
-14.34 |
693.02 |
-2.07% |
15,068.71 |
| AdvisorShares |
98.54 |
663.80 |
14.84% |
999.27 |
| IndexIQ |
47.48 |
544.77 |
8.71% |
307.03 |
| GreenHaven |
-31.76 |
516.67 |
-6.15% |
166.87 |
| Pacer Financial |
-26.62 |
438.26 |
-6.07% |
143.91 |
| Credit Suisse |
49.17 |
437.73 |
11.23% |
290.93 |
| Goldman Sachs |
260.52 |
267.57 |
97.37% |
77.27 |
| RBS Securities |
28.12 |
199.21 |
14.11% |
162.22 |
| Precidian |
- |
193.02 |
0.00% |
267.40 |
| Russell |
-138.47 |
184.23 |
-75.16% |
416.09 |
| Fidelity |
181.96 |
184.13 |
98.83% |
70.28 |
| Deutsche Bank |
4.34 |
150.40 |
2.88% |
35.90 |
| Teucrium |
-6.96 |
82.11 |
-8.47% |
883.10 |
| Exchange Traded Concepts |
32.86 |
79.90 |
41.13% |
72.23 |
| Jefferies |
-4.62 |
79.34 |
-5.83% |
20.37 |
| FFCM |
11.33 |
51.52 |
21.98% |
59.92 |
| Morgan Stanley |
- |
31.87 |
0.00% |
7.66 |
| Columbia |
- |
25.97 |
0.00% |
11.04 |
| Pax World |
2.67 |
22.29 |
11.97% |
11.27 |
| Arrow Investment Advisors |
7.66 |
17.44 |
43.89% |
21.37 |
| BNP Paribas |
- |
17.18 |
0.00% |
2.05 |
| Factor Advisor |
- |
15.72 |
0.00% |
12.66 |
| Huntington Strategy Shares |
7.62 |
13.39 |
56.94% |
9.77 |
| CitiGroup |
2.59 |
5.34 |
48.56% |
14.76 |
Biggest Losers
A number of prominent bond funds littered our list of the
least-popular ETFs in both September and the third quarter, as
investors shed relatively safe fixed-income investments and took on
more risk in the equities market.
In September, the iShares Barclays 3-7 Year Treasury Bond Fund
(NYSEArca:IEI) shed $852.5 million in assets, ending the month with
just over $2 billion in assets.
In the entire third quarter, the iShares Barclays 1-3 Year
Treasury Bond Fund (NYSEArca:SHY) suffered outflows of $2.25
billion and ended the period with assets of almost $8.6
billion.
The U.S. ETF market's single-biggest fixed-income fund, the
iShares Barclays TIPS Bond Fund (NYSEArca:TIP), recorded
redemptions of $436 million in September and $349 million in the
entire third quarter. It ended the period with just over $23
billion in assets.
| Ticker |
Name |
Issuer |
September 2012 Flows |
September 2012 AUM ($, M) |
September 2012 Turnover |
| IEI |
iShares Barclays 3-7 Year Treasury Bond |
BlackRock |
-852.48 |
2,089.69 |
1,612.89 |
| UST |
ProShares Ultra 7-10 Year Treasury |
ProShares |
-556.58 |
20.07 |
628.49 |
| QQQ |
PowerShares QQQ |
Invesco PowerShares |
-528.75 |
34,766.36 |
47,279.86 |
| EWJ |
iShares MSCI Japan |
BlackRock |
-522.76 |
4,214.42 |
2,760.97 |
| SSO |
ProShares Ultra S&P 500 |
ProShares |
-496.98 |
1,088.72 |
7,451.95 |
| TIP |
iShares Barclays TIPS Bond |
BlackRock |
-436.30 |
23,097.54 |
2,940.43 |
| SHY |
iShares Barclays 1-3 Year Treasury Bond |
BlackRock |
-405.42 |
8,590.60 |
1,615.17 |
| BIL |
SPDR Barclays Capital 1-3 Month T-Bill |
SSgA |
-251.98 |
1,058.32 |
653.67 |
| XLI |
Industrial Select SPDR |
SSgA |
-203.45 |
3,230.92 |
8,716.48 |
| UNG |
United States Natural Gas |
US Commodity Funds |
-195.30 |
1,154.96 |
4,055.12 |
| Ticker |
Name |
Issuer |
Q3 2012 Flows |
Q3 2012 AUM ($, M) |
Q3 2012 Turnover |
| SHY |
iShares Barclays 1-3 Year Treasury Bond |
BlackRock |
- 2,245.79 |
8,590.60 |
7,001.74 |
| IEI |
iShares Barclays 3-7 Year Treasury Bond |
BlackRock |
- 1,159.66 |
2,089.69 |
4,955.46 |
| EWJ |
iShares MSCI Japan |
BlackRock |
-713.64 |
4,214.42 |
7,310.36 |
| UST |
ProShares Ultra 7-10 Year Treasury |
ProShares |
-684.16 |
20.07 |
2,587.66 |
| IEF |
iShares Barclays 7-10 Year Treasury
Bond |
BlackRock |
-606.86 |
4,576.17 |
5,938.64 |
| BIL |
SPDR Barclays Capital 1-3 Month T-Bill |
SSgA |
-503.97 |
1,058.32 |
1,984.25 |
| XLU |
Utilities Select SPDR |
SSgA |
-430.00 |
6,158.91 |
15,310.65 |
| FAS |
Direxion Daily Financial Bull 3x |
Direxion |
-411.58 |
1,114.87 |
25,417.05 |
| SSO |
ProShares Ultra S&P 500 |
ProShares |
-361.22 |
1,088.72 |
22,888.44 |
| TIP |
iShares Barclays TIPS Bond |
BlackRock |
-349.42 |
23,097.54 |
7,269.53 |
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