2013 ETF Recap For First Quarter
Michael Cafiero – Vice President ETF Trading – Knight Capital Americas, L.P.
Knight ETF Trading: Rounding out the Q1 of 2013 we saw a record quarter in terms of net inflows into ETFs. Equity linked ETFs were very strong as were flows into dividend income funds and minimum volatility funds. Despite the continued news pouring out of the Eurozone and more recently Cypress the markets remained resilient as we wrapped up the first quarter. The DJIA finished the quarters with an 11.6% gain while the Nasdaq Composite rose 9.1% and S&P gained 10.8%
Flows: For the month of March Knight ETF Trading had accounted for 14.25% of advertised ETF block shares traded trading in 1,449 unique ETFs. (Autex Block Data 4/2/13)
US Equity ETFs: Equity linked ETF flows continued to be robust as we moved through March. SPY(SPDR S&P 500 ETF TRUST), IVV (ISHARES CORE S&P 500 ETF), and VOO(VANGUARD S&P 500 ETF) all saw net inflows for the last month. Some notable selling has been seen in Midcap funds including IJH (ISHARES CORE S&P MIDCAP ETF) and MDY (SPDR S&P MIDCAP 400 ETF TRST) over the month. Growth funds including VUG (Vanguard Growth ETF), and IWO (ISHARES RUSSELL 2000 GROWTH) both saw a significant imbalance from the buy side.
Fixed Income ETFs: Overall selling for the month in treasury funds highlighted by MINT (PIMCO ENHANCED SHORT MATURIT), BSV (VANGUARD SHORT-TERM BOND ETF), and BIL (SPDR BARCLAYS 1-3 MONTH T-BI). High Yield funds continued to see inflows specifically in SJNK (SPDR BARCLAYS SHORT-TERM HIG), BSJG(GUGGENHEIM BULLETSHARES 2016), HYS(PIMCO 0-5 YEAR H/Y CORP BOND), and JNK (SPDR BARCLAYS HIGH YIELD BD).Corporate Bond ETFs saw steady inflows; specifically LQD (ISHARES IBOXX INV GR CORP BD), VCIT (VANGUARD INT-TERM CORPORATE), and VCSH (VANGUARD S/T CORP BOND ETF). Floating Rate funds saw continued inflows specifically in FLOT (ISHARES FLOATING RATE NOTE), and FLRN (SPDR BARCLAYS INVESTMENT GRA). Rounding out fixed income; flows remain strong into BKLN (POWERSHARES SENIOR LOAN), and shorter duration TIPS including VTP(VANGUARD SHORT-TERM TIPS) and TDTT (FLEXSHARES IBOXX 3-YEAR TARG).
International ETFs: Broad international inflows for the month headed into EEM (ISHARES MSCI EMERGING MKT IN), EEMV (ISHARES MSCI EMERG MKT MIN VOL), EWX (SPDR S&P EMERGING MKTS SMALL), VEA (VANGUARD MSCI EAFE ETF), and VPL (VANGUARD FTSE PACIFIC ETF). Broad outflows for the month included DGS (WISDOMTREE EM SMALL CAP), and ACWX (ISHARES MSCI ACWI EX US INDX). For individual countries we saw inflows into EWL (ISHARES MSCI SWITZERLAND CAP), EWG (ISHARES MSCI GERMANY INDEX), EWY (ISHARES MSCI SOUTH KOREA CAP), DXJ (WISDOMTREE JAPAN HEDGED EQ), EWA (ISHARES MSCI AUSTRALIA INDEX), and FXI (ISHARES FTSE CHINA 25 INDEX). Sellers were seen in INDA (ISHARES MSCI INDIA INDEX FND), EWP (ISHARES MSCI SPAIN CAPPED IN), and EWS (ISHARES MSCI SINGAPORE).
Commodity ETFs/ETNs: Gold linked funds saw their share of sellers for the Month of March. IAU (ISHARES GOLD TRUST), GLD (SPDR GOLD TRUST), and GDX (MARKET VECTORS GOLD MINERS) all saw pressure from sellers in the last 30 days.
Sector ETFs: For sector funds we saw money rotate into XLU (UTILITIES SELECT SECTOR SPDR), XLP (CONSUMER STAPLES SPDR), FXG (FIRST TRUST CONSUMER STAPLES), and IYC (ISHARES DJ US CNSMER SERVICE). Selling was seen in XLF(FINANCIAL SELECT SECTOR SPDR), XRT (SPDR S&P RETAIL ETF),and IYM (ISHARES DJ US BASIC MATERIAL).
Alternative/Specialty ETFs: The yield oriented funds continue to garner assets. Some notable names over the last month include, MDIV (FT NASDAQ US MA DIVERS INC), VIG (VANGUARD DIVIDEND APPREC ETF), DVY (ISHARES DJ SELECT DIVIDEND), and SDY (SPDR S&P DIVIDEND ETF). Demand was seen for Agriculture linked funds including MOO (MARKET VECTORS AGRIBUSINESS) as well as natural resources as seen in GUNR (FLEXSHARES GLOBAL UPSTREAM N).
You may reach Michael directly at email@example.com
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