GLD Shines Bright; KRE Drops Amid Unusual Stock Outflows
During the week ending October 17, 2023, investors infused a net total of $1.1 billion into U.S.-listed ETFs, according to FactSet. However, the trend was varied across asset classes. While U.S. equity ETFs experienced a significant outflow of $2.5 billion, commodities ETFs saw a strong inflow, attracting $1.8 billion.
ETFs Performance Overview
U.S. fixed-income funds garnered $1.6 billion, and international equity ETFs pulled in $1.1 billion. Notably, the SPDR S&P 500 ETF Trust (SPY) led inflows with $1.8 billion. The SPDR Gold Shares (GLD) followed closely, collecting $1.7 billion as gold prices surpassed $4,300 per ounce, marking over a 60% gain year-to-date.
Top Inflows and Outflows
- SPY (SPDR S&P 500 ETF Trust): $1,816.9 million
- GLD (SPDR Gold Shares): $1,725.7 million
- BBEU (JPMorgan BetaBuilders Europe ETF): $697.9 million
- GOVT (iShares U.S. Treasury Bond ETF): $379.9 million
- KRE (SPDR S&P Regional Banking ETF): -$569.3 million
Regional Banking Woes
The SPDR S&P Regional Banking ETF (KRE) faced considerable outflows amid renewed concerns regarding the stability of regional banks. This speculation resulted in a brief sell-off in the sector, contributing to its significant loss.
Market Insights
Despite the decline in U.S. equities, alternatives and commodities showed resilience. The asset allocation for alternatives was positive with net inflows of $25.4 million. International equity saw a net flow of $1.068 billion, further emphasizing strong investor interest in diversified funds.
Summary of ETF Flows by Asset Class
| Asset Class | Net Flows ($ mm) |
|---|---|
| Commodities ETFs | $1,778.2 |
| U.S. Equity | -$2,532.2 |
| International Equity | $1,068.6 |
Data reflects market conditions as of 6 a.m. Eastern Time on the publication date. While this information is believed to be accurate, market data is subject to change.
