Mid Caps ETFs See Sizable Outflows As Year-End Approaches

As we mentioned earlier today, we’re seeing sizable outflows heading into the end of the trading year in two Mid Cap equity focused ETFs.

Specifically, we notice over $1.3 billion leaving VO (Vanguard Mid-Cap) and more than $1 billion flowing out of IJJ (iShares Mid-Cap 400 Value). The two funds respectively have about $16.6 billion and $5.6 billion in assets under management.

So these larger inflows are worth noting, even if they are simply tax-related portfolio tilts or performance/end-of-quarter linked trading. Even with the latest outflows, VO has still had a more than respectable year in 2016 in terms of attracting net assets, with more than $2.2 billion in while IJJ has still managed to attain a net positive $700 million in during this time frame.

VOO-2016-12-29

The two largest Mid-Cap equity ETFs in the U.S. listed universe are IJH (iShares Core S&P Mid-Cap, Expense Ratio 0.07%, $34.7 billion in AUM) and MDY (SPDR S&P Mid-Cap 400, Expense Ratio 0.25%, $18.8 billion in AUM), and IJH has turned in a solid 2016 in terms of asset gathering thus far ($3.2 billion in), while MDY has attracted much less ($910 million in).

The Mid-Cap Equity space is fertile ground for a number of issuers and fund offerings in terms of investor popularity, at least judging by current assets under management levels, as outside of the four funds previously mentioned here, we see several popular Russell Index based products like IWR (iShares Russell Mid-Cap, Expense Ratio 0.22%, $14.3 billion in AUM), IWS (iShares Russell Mid-Cap Value, Expense Ratio 0.25%, $9.1 billion in AUM), and IWP (iShares Russell Mid-Cap Growth, Expense Ratio 0.25%, $6.7 billion in AUM), which clearly have hefty asset levels. Furthermore, there are eight other funds outside of this list that have north of $1 billion in AUM, with some larger than the $5 billion level, from fund sponsors such as iShares, Vanguard, Schwab, and WisdomTree.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch
paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.