ETF fund flows (money moving in and out of ETFs) are a great way to get a timely perspective of what is happening in the fund space and the market in general. It can give you a glimpse into where things may be headed and the general investing environment. Here is a look at fund flows to start the month of November, thru November 15th.
QQQ Invesco QQQ Trust 5,429.57
HYG iShares iBoxx USD High Yield Corporate Bond ETF 3,404.80
SPY SPDR S&P 500 ETF Trust 2,479.52
IWM iShares Russell 2000 ETF 2,196.02
VOO Vanguard S&P 500 ETF 1,946.96
LQD iShares iBoxx USD Investment Grade Corporate Bond ETF 1,391.55
RSP Invesco S&P 500 Equal Weight ETF 1,362.31
VTI Vanguard Total Stock Market ETF 1,271.03
VTEB Vanguard Tax-Exempt Bond ETF 1,223.63
VCSH Vanguard Short-Term Corporate Bond ETF 1,111.20
Analysis of Creations – Through the first 2 weeks of November, we can see that there is a move to more risk being put on. The QQQ’s over the past month have returned 9.47%, HYG – 4.03%, SPY 10.58% and the IWM 10.46%.
SHV iShares Short Treasury Bond ETF -4,516.07
SDY SPDR S&P Dividend ETF -1,657.67
VTV Vanguard Value ETF -1,145.64
EMB iShares JP Morgan USD Emerging Markets Bond ETF -1,092.50
GLD SPDR Gold Trust -842.18
IWD iShares Russell 1000 Value ETF -704.67
VTIP Vanguard Short-Term Inflation-Protected Securities ETF -697.11
GSLC Goldman Sachs Active Beta U.S. Large Cap Equity ETF -692.47
TLT iShares 20+ Year Treasury Bond ETF -609.69
MINT PIMCO Enhanced Short Maturity Active ETF -544.15
Analysis of Redemptions – Through the first 2 weeks of November, we can see that there is a move out of value and safety. The SDY the dividend version of the SPY has really outperformed this year with a loss of just 1.22%.
What’s Creation and Redemption
ETFs are unique to equities because of their Creation and Redemption process. When a fund grows in assets the Associated Providers simply create more shares (Creations), at the same time when a fund is sold, those same shares can be redeemed (Redemptions).