Large Caps Saw Greatest Outflows Among U.S. Equity ETFs

Large Caps Flows by asset type

Analyzing the ETF flows for last week, a recent Credit Suisse report points out that large caps saw significant outflows, while small cap outflows were modest at $660 million.

In terms of sector focus, Victor Lin of Credit Suisse points out health care ETFs witnessed the largest sector outflows with over $700 million in net redemptions.

Flows by asset type

Tracking the ETF flows by asset type, Lin points out that developed global / international ETFs witnessed an outflow of $0.61 billion, while alternatives witnessed an outflow of $0.35 billion.

The following graph illustrates the flows by asset type:

Turning the focus towards loan markets, Lin points out loan markets showed borrow easing substantially for PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ), SPDR S&P 500 ETF Trust (NYSEARCA:SPY) and SPDR S&P Oil & Gas Explore & Prod. (ETF) (NYSEARCA:XOP), while iShares MSCI Emerging Markets Indx (ETF), Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO) and SPDR S&P Homebuilders (ETF) (NYSEARCA:XHB) became more difficult to borrow. The following graph captures the trend in the loan markets:

ETP Loan Markets

Trends in regional flows

The Credit Suisse analyst notes U.S. equity ETFs witnessed outflows of $7.5 billion. However, broad-based emerging market equity ETFs had net inflows of $1.7 billion, a large part of the $2.4 billion of total net inflows for Emerging Market ETFs.

The following graph illustrates the flows by region:

Flows by region

Analyzing sector flows, Lin points out that Health Care ETFs had the largest outflows last week witnessing net redemptions totaling over $700 million. Moreover, there were also significant outflows from Utilities and Financials ETFs. However, net inflows were seen in Real Estate and Energy ETFs at $397 million and $390 million respectively.

The following graph captures the flows by sector:

Flows by sector

Fixed income flows

The Credit Suisse analyst points out that corporate bond ETFs attracted $490 million of net inflows, while municipal bond ETFs attracted $188 million. The CS report notes fixed income ETF flows were relatively light last week. The following graph highlights the bond ETF flows:

Bond ETF flows

In summary, the analyst highlights WTD, MTD and YTD flows as under:

The week-to-date largest inflows stood at $9,800 million, while the week-to-date largest outflows stood at $15,003 million. The following graph illustrates the week-to-date flows:

Week to date

The month-to-date largest inflows stood at $34,008 million, while the month-to-date largest outflows stood at $26,078 million. This is highlighted in the following graph:

Month to date

The year-to-date largest inflows stood at $77,163 million, while the year-to-date largest outflows stood at $64,038 million. The following graph sets forth the year-to-date flows:

Year to date



About the Author

Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports