Fund flow analysis: Global ETFs

Fund flow statistics are extremely helpful in understanding investor sentiment towards different sections of financial markets. Latest fund flow statistics available, for the week ending 18th May, from ETF.com

Inflows –

• Looking at this week’s fund flow, risk aversion and risk affinity both are visible and we can see discretion in choosing risk affinity, so it is not broad based.

• SPDR Gold Trust saw large inflows, in tune of $575.1 million. iShares 7-10 year U.S treasury bond ETF received inflows of $387.7 million. 20+ year U.S treasury bond ETF received inflows of $303 million. These are signs of clear risk aversion.

• However risk affinity wins the week with bigger inflows. SPDR S&P ETF Trust saw biggest inflows of $944.3 million, followed by iShares iBoxx $ High Yield Corporate Bond ETF that saw $935.5 million inflow.
   

• iShares U.S. Real Estate ETF saw $710.7 million inflow.

Outflows –

• iShares Russell 2000 ETF saw biggest outflow in tune of $1.9 billion. Ishares MSCI Emerging Markets ETF saw outflows of $1.16 billion. Health Care Select Sector SPDR Fund saw outflows of $ 565 million and iShares MSCI Japan ETF saw outflows of $385.6 million.           

• These are clear signs of risk aversion and discretion is risk picking.