Top 10 June ETF Inflows
Investors worried about inflation and high fees poured money into commodities, inflation protected bonds, and cheaper versions of existing funds in June.
The United States Natural Gas Fund (UNG) was the month’s big winner with as investors showered 1.7 billion dollars on the commodity futures fund, despite concerns about its tracking accuracy. iShares’s TIP Bond Fund (TIP) saw the second biggest cash infusion, with the inflation-conscious sinking $942 million into the inflation protected securities fund.
Vanguard’s MSCI Emerging Markets (VWO) was in third place for a decidedly different reason, as institutional money fled en masse from the iShares MSCI Emerging Markets (EEM) to the VWO’s lower expense ratio. Cost conscious investors also rewarded iShares S&P 500 fund (IVV), to the detriment of State Street’s SPY.
The ProShares Ultra Short S&P 500 Fund (SDS) also saw $577 million of inflows in June, a warning sign that investors are betting on an imminent market correction.
| Net Cash Flow | |
|---|---|
| 1. US Natural Gas Fund (UNG) | $1.70 billion |
| 2. iShares Barclays TIP Bond (TIP) | $942 million |
| 3. Vanguard Emerging Markets (VWO) | $777 million |
| 4. iShares S&P 500 (IVV) | $642 million |
| 5. SPDR Financials (XLF) | $508 million |
| 6. ProShares Ultra Short S&P 500 (SDS) | $577 million |
| 7. SPDR Dow Diamonds DJIA (DIA) | $414 million |
| 8. PowerShares DB Commodity Index Tracking (DBC) | $438 million |
| 9. iShares GSCI Commodity Fund (GSG) | $332 million |
| 10. iShares S&P Midcap 400 (IJH) | $303 million |
June’s figures highlight the rising prominence of commodity ETFs, which carry unique tracking risks all investors should be aware of.
Those worried about inflation should also be aware of the risk of TIPs, and consider broader alternatives such as the SPDR International Government Inflation-Protected Bond (WIP) .
