ETFs received $17.4 billion of net inflows last week, the largest weekly net inflow of the year, Morgan Stanley said in a report. U.S. equity ETFs received the most of any asset group, at $13.7 billion.
The top two asset classes over the past week were U.S. large-cap stocks, with net inflows of $5.3 billion and U.S. small and micro-cap stocks with $3.9 billion. Commodities saw inflows of $623 million. The SPDR S&P 500 (SPY), with $3.478 bilion and the iShares Russell 2000 Index Fund (IWM), with $3.471 billion, were the top two funds. The SPDR Gold Trust (GLD) saw net inflows of $852 million.
The short interest betting the SPDR will fall grew the most of all ETFs, $4.4 billion. Meanwhile iShares Russell 2000 Index Fund saw its short interest post the largest decline, $1.1 billion.
In a sign that investors were moving away from safe-haven assets, Morgan Stanley says the two funds with the largest net outflows were iShares Barclays Short Treasury Bond Fund (SHV), losing $683 million, and SPDR Barclays Capital 1-3 Month T-Bill ETF down $674 million.
Over the past 13 weeks, ETFs in all asset classes received a combined $29.4 billion in net inflows. Fixed income saw inflows of $13.8 billion over the past 11 weeks.
For the year to date, $98.3 billion have flowed into ETFs, or 9%, for a total ETF assets of $1.1 trillion.
Among ETFs under a year old the largest net inflows were seen by the PowerShare S&P 500 Low Volatility Portfolio, with $38 million last week, and the iShares High Dividend Equity Fund (HDV), with $19 million.