Weekly ETF Flows: EEM Again Adds Assets

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Investors poured money into international equity ETFs in the past week and, once again, flows into the iShares MSCI Emerging Markets Index Fund (NYSEArca:EEM) were a prominent feature of the week.

Overall, investors plowed $3.86 billion into ETFs in the week ended Thursday, Dec. 6, with $2.67 billion of that in international equity, according to data compiled by IndexUniverse. Total U.S-listed ETF assets rose to $1.317 trillion-just shy of the all-time record of $1.318 trillion set in October- from $1.312 trillion in the prior week.

The asset gains were helped by the Dow Jones industrial average's gain of 52 points, or 0.4 percent, in the same five-day period ended Thursday.

EEM gathered $908.9 million, and total assets in the fund ended the period at almost $42.6 billion. The Vanguard MSCI Emerging Markets ETF (NYSEArca:VWO) meanwhile had negligible inflows and its assets ended the week at nearly $58 billion.

The flows are the latest sign investors have been pouring money back into EEM since The Vanguard Group's announcement in early October that it planned to change indexes on VWO to a benchmark from FTSE. In that vein, EEM was the single most popular ETF in all of November.

Some ETF industry sources have argued that the positive flows for EEM relative to VWO-essentially a reversal of a broad pattern of the past few years-might be related to the fact that institutions still largely favor MSCI benchmarks. That would mean VWO could be falling out of favor among such large investors, no matter how smoothly it trades.

Another feature of the past week was broad outflows from a number of Vanguard funds-much as we predicted would be the case last week, when many of those same funds had exceptionally strong inflows.

Those asset movements don't appear to be inflows or outflows in the usual sense, but rather reflect adjustments around twice-yearly rebalancing of MSCI indexes, as Stifel Nicolaus said in an analyst note this week.

"Twice per year, MSCI rebalances its indices, and during this process the Vanguard funds create new shares temporarily (with the authorized dealer) and then reverse the trades within days through fund redemption and in-kind exchange of stocks," Stifel Nicolas analyst Jeffrey Hopson said in the report.

The week's least popular fund, the Vanguard Mid-Cap ETF (NYSEArca:VO), was at the very center of the phenomenon Hopson described, with redemptions of $1.39 billion. Those redemptions followed VO creations in the prior week amounting to $1.4 billion-a perfect illustration of such phantom flows from Vanguard.

Vanguard has been mostly reticent on the subject, acknowledging that the flows are related to period rebalancings, but declining to elaborate.

Top 10 Creations (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
SPY SPDR S&P 500 2,322.89 112,290.76 2.11%
QQQ PowerShares QQQ 997.19 31,250.61 3.30%
EEM iShares MSCI Emerging Markets 908.87 42,595.59 2.18%
XLP Consumer Staples Select SPDR 533.59 6,566.99 8.84%
IWM iShares Russell 2000 484.10 15,935.61 3.13%
EWJ iShares MSCI Japan 317.12 4,566.54 7.46%
XLV Health Care Select SPDR 307.98 5,884.73 5.52%
IVV iShares Core S&P 500 305.63 32,919.21 0.94%
EMB J.P. Morgan USD Emerging Markets Bond 280.07 6,806.48 4.29%
VGK Vanguard MSCI Europe 261.23 4,607.12 6.01%


Top 10 Redemptions (All ETFs)

Ticker Name Net Flows ($,mm) AUM ($, mm) AUM % Change
VO Vanguard Mid-Cap -1,386.47 3,839.55 -26.53%
VTV Vanguard Value -1,243.89 6,803.00 -15.46%
VB Vanguard Small-Cap -845.56 4,492.39 -15.84%
VUG Vanguard Growth -604.74 8,379.60 -6.73%
VBR Vanguard Small-Cap Value -503.79 2,176.05 -18.80%
VBK Vanguard Small-Cap Growth -488.74 2,113.78 -18.78%
XLB Materials Select SPDR -286.96 2,166.59 -11.70%
VOT Vanguard Mid-Cap Growth -174.30 1,172.11 -12.95%
DIA SPDR Dow Jones Industrial Average Trust -171.12 10,349.14 -1.63%
XRT SPDR S&P Retail -157.43 640.46 -19.73%


ETF Weekly Daily Flows By Asset Class

Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity -484.69 587,058.16 -0.08%
International Equity 2,659.28 314,736.73 0.84%
U.S. Fixed Income 987.22 229,386.23 0.43%
International Fixed Income 380.77 25,260.06 1.51%
Commodities 542.72 120,640.11 0.45%
Currency -26.52 2,838.68 -0.93%
Leveraged -271.66 13,574.01 -2.00%
Inverse 139.45 17,576.70 0.79%
Asset Allocation 14.29 2,347.92 0.61%
Alternatives -84.60 3,588.83 -2.36%
Total: 3,856.26 1,317,007.42 0.29%


Top 10 Volume Surprises, Funds 'gt;$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average
Volume
% of Average
ECON EGShares Emerging Markets Consumer 356,590 8,240,353 462.18%
RXI iShares S&P Global Consumer Discretionary 62,002 1,281,041 413.22%
AUNZ WisdomTree Australia & New Zealand Debt 34,874 719,373 412.55%
BWZ SPDR Barclays Short Term International Treasury Bond 38,635 693,230 358.86%
EWO iShares MSCI Austria Investable Market 162,374 2,870,461 353.56%
ISHG iShares S&P/Citigroup 1-3 Year International Treasury Bond 14,163 241,850 341.51%
TDTT FlexShares iBoxx 3-Year Target Duration TIPS 163,668 2,660,660 325.13%
EWX SPDR S&P Emerging Markets Small Cap 82,212 1,189,356 289.34%
IAT iShares Dow Jones U.S. Regional Banks 81,020 1,141,793 281.86%
ACWV iShares MSCI All Country World Minimum Volatility 35,008 487,779 278.67%


Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and 'lt;1,000 Shares Traded

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
DRGS RBS Global Big Pharma ETN 7.25% 3,264 4.80
VIXY ProShares VIX Short-Term 6.10% 3,180,438 151.10
VIIX VelocityShares VIX Short Term ETN 6.05% 1,046,928 14.90
VXX iPath S&P 500 VIX Short-Term Futures ETN 6.05% 130,866,889 1,228.57
SCIN EGShares India Small Cap 5.88% 39,700 25.84
SCIF Market Vectors India Small-Cap 5.79% 947,866 83.79
INXX EGShares India Infrastructure 5.76% 22,576 59.88
CHXX EGShares China Infrastructure 5.68% 14,261 12.23
SMIN iShares MSCI India Small Cap 5.10% 9,418 5.27
GREK Global X FTSE Greece 20 4.65% 123,425 20.28
Bottom 10 Weekly Performers, Excluding Leverage/Inverse Funds and 'lt;1,000 Shares Traded
Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
RING iShares MSCI Global Gold Miners -5.30% 64,847 36.35
GDX Market Vectors Gold Miners -5.23% 67,398,965 9,093.78
GGGG Global X PURE Gold Miners -5.16% 7,700 4.12
UGA United States Gasoline -5.02% 91,545 63.05
GLDX Global X Gold Explorers -4.61% 282,381 39.11
GDXJ Market Vectors Junior Gold Miners -4.44% 11,410,863 2,726.40
PSAU PowerShares Global Gold and Precious Metals -4.16% 18,583 36.00
PGJ PowerShares Golden Dragon China -4.09% 226,635 181.94
GRN iPath Global Carbon ETN -3.93% 22,807 1.06
DBS PowerShares DB Silver -3.87% 181,040 68.41

Top 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
ITB iShares Dow Jones U.S. Home Construction 67.82 -3.35 1,604.13
TUR iShares MSCI Turkey Investable Market 57.87 4.19 688.28
INCO EGShares India Consumer 55.48 3.82 2.46
TAO Guggenheim China Real Estate 52.51 2.09 64.38
XHB SPDR S&P Homebuilders 51.12 -2.69 2,178.99
BBH Market Vectors Biotech 48.84 -0.92 141.08
EPHE iShares MSCI Philippines Investable Market 44.60 1.89 203.82
IFAS iShares FTSE EPRA/NAREIT Developed Asia 38.85 0.46 33.06
FBT First Trust NYSE Arca Biotechnology 38.76 -1.51 235.82
PKB PowerShares Dynamic Building & Construction 38.43 -1.36 61.31

Bottom 10 YTD Performers

Ticker Name YTD Performance Weekly Performance AUM ($, mm)
VIIX VelocityShares VIX Short Term ETN -78.63 6.05 14.90
VXX iPath S&P 500 VIX Short-Term Futures ETN -78.63 6.05 1,228.57
VIXY ProShares VIX Short-Term -78.57 6.10 151.10
VIIZ VelocityShares VIX Mid Term ETN -53.02 0.70 5.13
VXZ iPath S&P 500 VIX Mid-Term Futures ETN -53.02 0.70 76.53
VIXM ProShares VIX Mid-term -52.94 0.69 90.04
TAN Guggenheim Solar -42.85 -0.07 42.26
KWT Market Vectors Solar Energy -41.18 1.59 9.75
JO iPath Dow Jones-UBS Coffee Total Return ETN -40.12 -3.66 53.30
CAFE iPath Pure Beta Coffee ETN -38.76 -3.44 2.46

Disclaimer:All data as of 6 a.m. Eastern time the date the article is published. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.

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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: EEM , VO , VWO

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