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ETFs AM Wrap-Up: Investors Buy Low Volatility to Lower Portfolio Beta with VIX Trending Up

Apr 26, 2019

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  • Interesting to see the iShares Edge MSCI Minimum Volatility USA ETF (USMV) in the top 5 ETFs by 1-day fund flow yesterday. This suggests that investors may be looking to introduce low beta into the portfolios to protect against a breakout in volatility.  The collapse in the VIX and overall volatility over the course of 2019 has been one of the quickest in history, something we discuss more in, “Like Cookie Monster with Chips Ahoy, Investors Gobble Up Risk; VIX Collapse Since December One of Quickest Ever”.
     
  • USVM currently has a “Worst” ETF Smart Beta Score and a “Sell” AI Trading Signal according to our models.  
     
  • Two of OUR favorite low volatility ETFs are iShares Edge USA Momentum ETF (MTUM) and Alpha Architect US Quantitative Momentum ETF (QMOM)
     
  • Investors continued to be bullish on tech stocks yesterday with the Technology Select Sector SPDR Fund (XLK) receiving a little over $106.4 million yesterday. For the past week, we have been highlighting the elevated levels of inflows into technology ETFs. XLK is currently number 3 in our ETF universe by 1-week fund flow with $540.6 million of positive flows while the Vanguard Information Technology ETF (VGT) is currently number 5 in our ETF universe by 1-week fund flow with $426.1 million flowing into the fund. The tech-heavy Invesco QQQ Trust (QQQ) is also number 3 in our ETF universe by 1-week fund flow with nearly $590 million flowing into the fund.
     
  • XLK currently has a “Caution” ETF Smart Beta Score and a “Sell” AI Trading Signal according to our models. VGT currently has a “Caution” ETF Smart Beta Score and a “Sell” AI Trading Signal according to our models. QQQ currently has a “Poor” ETF Smart Beta Score and a “Sell” AI Trading Signal according to our models. 
     
  • XLK has lagged many of its other US Tech ETF peers this year 
     
  • First Trust Technology AlphaDEX (FXL) is our “BEST” Tech ETF according to the Quantamize Smart Beta Ratings

 

Top 5 ETFs by Assets Under Management (AUM)

On Mobile/Tablet scroll to the right

Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
SPDR S&P 500 ETF Trust SPY -$949,667,193 -$4,726,237,444 $3,950,516,776 $3,916,949,817 $276.74 0.09%
iShares Core S&P 500 ETF IVV $0 $10,736,025 $2,885,350,090 $3,055,988,440 $177.95 0.04%
Vanguard Total Stock Market ETF VTI $35,059,701 $275,515,541 $870,663,525 $2,196,668,466 $114.15 0.04%
Vanguard S&P 500 ETF VOO -$12,057,502 -$171,127,329 $1,299,912,809 $5,527,132,333 $112.42 0.04%
Invesco QQQ Trust QQQ -$407,771,150 $589,299,450 -$119,262,750 $3,516,120,800 $76.49 0.20%
 

Source: ETF Global

Top 5 ETFs by Lowest Net Expense Ratios

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Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
JPMORGAN BETABUILDERS U.S. EQUITY ETF BBUS $0 $0 $2,602,500 $0 $0.03 0.02%
SPDR Portfolio Large Cap ETF SPLG $0 $71,587,934 $9,008,089 $315,714,955 $2.35 0.03%
iShares Core S&P Total U.S. Stock Market ETF ITOT $0 $82,713,800 $582,321,220 $1,336,162,660 $19.85 0.03%
Schwab US Large-Cap ETF SCHX $13,980,205 $69,632,405 $498,516,029 $807,236,649 $16.53 0.03%
Schwab US Broad Market ETF SCHB $0 -$181,144,839 -$112,837,661 $354,411,760 $14.69 0.03%

Source: ETF Global

Top 5 ETFs by 1-Day Fund Flow

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Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
SPDR S&P Retail ETF XRT $201,911,987 $99,103,874 $103,178,761 $158,149,669 $0.45 0.35%
Vanguard Value ETF VTV $135,117,041 $142,157,532 $344,668,863 -$19,794,682 $47.62 0.05%
Technology Select Sector SPDR Fund XLK $106,463,225 $540,670,462 $851,234,602 -$482,682,757 $21.13 0.13%
iShares Edge MSCI Min Vol USA ETF USMV $101,003,970 $265,835,570 $557,180,320 $2,723,283,710 $25.31 0.15%
Health Care Select Sector SPDR Fund XLV $69,772,376 $217,640,902 -$695,704,541 -$393,366,045 $18.14 0.13%

Source: ETF Global

Top 5 ETFs by 1-Week Fund Flow

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Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
iShares 20+ Year Treasury Bond ETF TLT -$185,116,800 $1,945,166,490 $2,641,275,270 $2,518,147,810 $12.53 0.15%
Invesco QQQ Trust QQQ -$407,771,150 $589,299,450 -$119,262,750 $3,516,120,800 $76.49 0.20%
Technology Select Sector SPDR Fund XLK $106,463,225 $540,670,462 $851,234,602 -$482,682,757 $21.13 0.13%
iShares Core MSCI EAFE ETF IEFA $0 $523,339,320 $1,813,286,720 $4,715,987,220 $63.42 0.08%
Vanguard Information Technology ETF VGT $32,032,500 $426,164,000 $572,523,801 $509,044,427 $21.18 0.10%

Source: ETF Global

Top 5 ETFs by 1-Month Fund Flow

On Mobile/Tablet scroll to the right

Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
SPDR S&P 500 ETF Trust SPY -$949,667,193 -$4,726,237,444 $3,950,516,776 $3,916,949,817 $276.74 0.09%
iShares Core S&P 500 ETF IVV $0 $10,736,025 $2,885,350,090 $3,055,988,440 $177.95 0.04%
iShares 20+ Year Treasury Bond ETF TLT -$185,116,800 $1,945,166,490 $2,641,275,270 $2,518,147,810 $12.53 0.15%
iShares Core MSCI EAFE ETF IEFA $0 $523,339,320 $1,813,286,720 $4,715,987,220 $63.42 0.08%
JPMorgan BetaBuilders Canada ETF BBCA $22,086,000 $51,822,000 $1,356,090,000 $1,375,083,000 $3.72 0.19%

Source: ETF Global

Top 5 ETFs by 3-Month Fund Flow

On Mobile/Tablet scroll to the right

Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
Vanguard S&P 500 ETF VOO -$12,057,502 -$171,127,329 $1,299,912,809 $5,527,132,333 $112.42 0.04%
iShares Core MSCI EAFE ETF IEFA $0 $523,339,320 $1,813,286,720 $4,715,987,220 $63.42 0.08%
Graniteshares Gold Trust BAR -$1,898,250 -$10,801,550 -$8,228,750 $4,105,621,020 $0.45 0.17%
SPDR S&P 500 ETF Trust SPY -$949,667,193 -$4,726,237,444 $3,950,516,776 $3,916,949,817 $276.74 0.09%
Invesco QQQ Trust QQQ -$407,771,150 $589,299,450 -$119,262,750 $3,516,120,800 $76.49 0.20%

Source: ETF Global

 

 

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