Credit: Shutterstock photoWith the Fed signaling that change may be coming regarding its five-year easy money policy featuring zero interest rates and "quantitative easing," it's no surprise that ETF investors were running for cover in the past week, pulling money out of bond funds, equity funds and, of course, gold.
Overall, net outflows totaled more than $6 billion in the week ended Thursday, June 27, though total U.S.-listed ETF assets held about steady at $1.437 trillion, as the S&P 500 Index bounced back from some sharp selling last week to end the five-day trading period more than 1.5 percent higher at 1,613.20.
With all the fretting about interest-rate risk, bond funds were all over IndexUniverse's Top 10 Creations and Redemptions list. The locus of the uncertainty of the outlook was concentrated in bonds, but all different pockets of the ETF world were reflecting the "what-will-happen-next?" mentality coursing through financial markets.
On the one hand, investors were bailing out of stalwart fixed-income funds such as the Vanguard Total Bond Market ETF (NYSEArca:BND), the SPDR Barclays High Yield Bond ETF (NYSEArca:JNK) and the iShares iBoxx $ Investment Grade Corporate Bond Fund (NYSEArca:LQD). Total bond-fund redemptions in the five-day period exceeded $1.6 billion, according to data compiled by IndexUniverse.
On the other hand, they were moving into shorter-duration fixed-income funds such as the SPDR Barclays 1-3 Month T-Bill ETF (NYSEArca:BIL) and the iShares Barclays 1-3 Year Treasury Bond Fund (NYSEArca:SHY).
Gold also took it on the chin, with the SPDR Gold Shares (NYSEArca:GLD), the market's biggest gold ETF, losing more than $1 billion in assets in the past week. The huge fund, now with $38.41 billion in assets, has lost almost half its assets this year after ending 2012 with about $72 billion in assets.
Even equities were vulnerable, especially those focused on the developing worlds. As an example, the $48 billion Vanguard FTSE Emerging Markets ETF (NYSEArca:VWO) suffered outflows of more than $1 billion in the five-day period.
The SPDR S&P 500 ETF (NYSEArca:SPY) was the most unpopular fund last week, losing $3.8 billion. The world's biggest ETF still has $134 billion in assets.
Top 10 Creations (All ETFs )
Top 10 Redemptions (All ETFs)
ETF Weekly Flows By Asset Class
Top 10 Volume Surprises, Funds 'gt;$50 mm AUM
Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and 'lt;1,000 Shares Traded
Top 10 YTD Performers
Bottom 10 YTD Performers
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 Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
