US ETF Market Weekly Review : Equity ETPs received $5.0bn in inflows

Net Cash Flows Review

Markets moved higher during last week. The US (S&P 500) edged higher by 0.43%. While, outside the US,…

the MSCI EAFE (in USD) and the MSCI EM (USD) rose by 0.43% and 1.23%, respectively. Moving on to other asset classes, the 10Y US Treasury Yield declined by 3bps last week; while the DB Liquid Commodity Index was up by 3.42%. Similarly, the Agriculture sector (DB Diversified Agriculture Index) and the WTI Crude Oil advanced by 2.79% and 4.98%, while Gold and Silver prices retreated by 0.33%, and 0.05%, respectively. Last but not least, Volatility (VIX) dropped by 2.8% during the same period.

The total US ETP flows from all products registered $5.5bn of inflows during last week vs $0.9bn of inflows the previous week, setting the YTD weekly flows average at +$2.9bn (+$85.4bn YTD in total cash flows).

Equity, Fixed Income, and Commodity ETPs experienced flows of +$5.0bn, +$1.2bn, and -$0.8bn last week vs. +$0.3bn, +$1.0bn, and -$0.5bn previous week, respectively.

Within Equity ETPs, large cap products experienced the largest inflows (+$3.5bn); while small cap products had the largest outflows (-$0.5bn). Within Fixed Income ETPs, Corporate products had the largest inflows (+$1.1bn); while Sovereign ETPs experienced the only outflows (-$0.4bn), respectively. Within Commodity ETPs, precious metals products experienced the largest outflows (-$0.9bn), while the other sectors experienced less relevant flows.

Top 3 ETPs & ETNs by inflows: SPY (+$1.8bn), QQQ (+$1.2bn), XLI (+$0.5bn)

Top 3 ETPs & ETNs by outflows: GLD (-$0.8bn), IWM (-$0.5bn), SHY (-$0.5bn)

New Launch Calendar: more income strategies, AUD and enhanced beta

There were 5 new ETFs and 1 new ETN listed during last week. The new products offer exposure to Equity, Fixed Income and Currency asset classes. The new Equity products offer access to income through MLP investing and enhanced returns through a technical analysis-based strategy investing in small cap companies, similarly, the new Fixed Income products also offer access to income investing, but through preferred shares. Last but not least, the Currency products offer leverage long and short exposure to the Australian dollar.

Turnover Review: floor activity dropped by 6.1%

Total weekly turnover dropped by 6% to $238bn vs. $254bn in the previous week. Last week’s turnover level was 36% below last year’s weekly average. Equity ETPs experienced a decrease of $17.5bn or -7.7% to $210bn. In the meantime, Fixed Income ETP turnover rose by 15.5% (+$1.9bn), along with Commodity ETPs which rose by 1.8% (+$0.2bn).

Assets Under Management (AUM) Review: assets rose by 0.8%

ETP assets rose by 0.8% driven by strong inflows during last week and ended the week at $1.18 trillion. As of last Friday, US ETPs have accumulated an asset growth of 12.6% YTD. Assets for equity, fixed income and commodity ETPs moved +$8.1bn, +$2.3bn, and -$1.4bn during last week, respectively.

Source: ETFWorld.com – Deutsche Bank – Equity Research – North America