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.
Fund Creations
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%.
Fund Redemptions
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).