Record flows to financial sector funds
November 22, 2016 3:28 PM
Financial sector ETFs enjoyed record inflows following Donald Trump's victory.
The Financial Select Sector SPDR ETF, which had outflows of $1.5 billion in the last year, attracted a whopping $4.9 billion in inflows during the week after the election. The sector's flood of new money comes as a direct result of a steepening yield curve in response to Trump's win, an analyst says.
"This is a sign of both the Trump-inspired bullishness for the sector as well as the increase in the size and number of investors using ETFs to express opinions," says Eric Balchunas, an ETF analyst at Bloomberg Intelligence. "This is what it looks like when hot money gets excited. Keep in mind these flows could come out just as easily if the narrative changes again."
Scroll through to see the top 20 financial sector ETFs with more than $100 million in assets ranked by their net share class inflows over the last year. The following flow data was last reported on Oct. 31 and returns on Nov. 16. All data from Morningstar.
The Financial Select Sector SPDR ETF, which had outflows of $1.5 billion in the last year, attracted a whopping $4.9 billion in inflows during the week after the election. The sector's flood of new money comes as a direct result of a steepening yield curve in response to Trump's win, an analyst says.
"This is a sign of both the Trump-inspired bullishness for the sector as well as the increase in the size and number of investors using ETFs to express opinions," says Eric Balchunas, an ETF analyst at Bloomberg Intelligence. "This is what it looks like when hot money gets excited. Keep in mind these flows could come out just as easily if the narrative changes again."
Scroll through to see the top 20 financial sector ETFs with more than $100 million in assets ranked by their net share class inflows over the last year. The following flow data was last reported on Oct. 31 and returns on Nov. 16. All data from Morningstar.
Financial Select Sector SPDR ETF (XLF)
Estimated 1-Yr. Net Share Class Flows (millions): -$1,533.32
1-Yr. Return: 16.82%
Expense Ratio: 0.15%
Net Assets (millions): $19,751
1-Yr. Return: 16.82%
Expense Ratio: 0.15%
Net Assets (millions): $19,751
SPDR S&P Bank ETF (KBE)
Estimated 1-Yr. Net Share Class Flows (millions): -$427.73
1-Yr. Return: 17.02%
Expense Ratio: 0.35%
Net Assets (millions): $2,990
1-Yr. Return: 17.02%
Expense Ratio: 0.35%
Net Assets (millions): $2,990
iShares US Broker-Dealers & Secs Exchs (IAI)
Estimated 1-Yr. Net Share Class Flows (millions): -$181.17
1-Yr. Return: 15.58%
Expense Ratio: 0.44%
Net Assets (millions): $142
1-Yr. Return: 15.58%
Expense Ratio: 0.44%
Net Assets (millions): $142
First Trust Financials AlphaDEX ETF (FXO)
Estimated 1-Yr. Net Share Class Flows (millions): -$169.44
1-Yr. Return: 12.50%
Expense Ratio: 0.64%
Net Assets (millions): $837
1-Yr. Return: 12.50%
Expense Ratio: 0.64%
Net Assets (millions): $837
iShares US Regional Banks (IAT)
Estimated 1-Yr. Net Share Class Flows (millions): -$168.58
1-Yr. Return: 21.95%
Expense Ratio: 0.44%
Net Assets (millions): $391
1-Yr. Return: 21.95%
Expense Ratio: 0.44%
Net Assets (millions): $391
SPDR S&P Regional Banking ETF (KRE)
Estimated 1-Yr. Net Share Class Flows (millions): -$147.66
1-Yr. Return: 19.14%
Expense Ratio: 0.35%
Net Assets (millions): $3,150
1-Yr. Return: 19.14%
Expense Ratio: 0.35%
Net Assets (millions): $3,150
PowerShares KBW Bank ETF (KBWB)
Estimated 1-Yr. Net Share Class Flows (millions): -$135.99
1-Yr. Return: 18.39%
Expense Ratio: 0.35%
Net Assets (millions): $652
1-Yr. Return: 18.39%
Expense Ratio: 0.35%
Net Assets (millions): $652
PowerShares KBW High Div Yld Fincl ETF (KBWD)
Estimated 1-Yr. Net Share Class Flows (millions): -$35.92
1-Yr. Return: 13.33%
Expense Ratio: 0.35%
Net Assets (millions): $229
1-Yr. Return: 13.33%
Expense Ratio: 0.35%
Net Assets (millions): $229
Guggenheim S&P 500 Eq Weight Fincl ETF (RYF)
Estimated 1-Yr. Net Share Class Flows (millions): -$15.44
1-Yr. Return: 19.29%
Expense Ratio: 0.40%
Net Assets (millions): $146
1-Yr. Return: 19.29%
Expense Ratio: 0.40%
Net Assets (millions): $146
iShares US Financial Services (IYG)
Estimated 1-Yr. Net Share Class Flows (millions): -$11.13
1-Yr. Return: 12.15%
Expense Ratio: 0.44%
Net Assets (millions): $1,126
1-Yr. Return: 12.15%
Expense Ratio: 0.44%
Net Assets (millions): $1,126
PowerShares S&P SmallCap Financials ETF (PSCF)
Estimated 1-Yr. Net Share Class Flows (millions): $7.38
1-Yr. Return: 20.20%
Expense Ratio: 0.29%
Net Assets (millions): $217
1-Yr. Return: 20.20%
Expense Ratio: 0.29%
Net Assets (millions): $217
iShares MSCI Europe Financials (EUFN)
Estimated 1-Yr. Net Share Class Flows (millions): $18.53
1-Yr. Return: -7.58%
Expense Ratio: 0.48%
Net Assets (millions): $340
1-Yr. Return: -7.58%
Expense Ratio: 0.48%
Net Assets (millions): $340
VanEck Vectors BDC Income ETF (BIZD)
Estimated 1-Yr. Net Share Class Flows (millions): $21.91
1-Yr. Return: 16.62%
Expense Ratio: 0.40%
Net Assets (millions): $112
1-Yr. Return: 16.62%
Expense Ratio: 0.40%
Net Assets (millions): $112
First Trust Nasdaq ABA Community Bk ETF (QABA)
Estimated 1-Yr. Net Share Class Flows (millions): $29.13
1-Yr. Return: 21.56%
Expense Ratio: 0.60%
Net Assets (millions): $277
1-Yr. Return: 21.56%
Expense Ratio: 0.60%
Net Assets (millions): $277
SPDR S&P Insurance ETF (KIE)
Estimated 1-Yr. Net Share Class Flows (millions): $44.12
1-Yr. Return: 15.36%
Expense Ratio: 0.35%
Net Assets (millions): $780
1-Yr. Return: 15.36%
Expense Ratio: 0.35%
Net Assets (millions): $780
iShares Global Financials (IXG)
Estimated 1-Yr. Net Share Class Flows (millions): $46.02
1-Yr. Return: 7.15%
Expense Ratio: 0.47%
Net Assets (millions): $321
1-Yr. Return: 7.15%
Expense Ratio: 0.47%
Net Assets (millions): $321
Fidelity MSCI Financials ETF (FNCL)
Estimated 1-Yr. Net Share Class Flows (millions): $48.12
1-Yr. Return: 18.40%
Expense Ratio: 0.12%
Net Assets (millions): $346
1-Yr. Return: 18.40%
Expense Ratio: 0.12%
Net Assets (millions): $346
Vanguard Financials ETF )
Estimated 1-Yr. Net Share Class Flows (millions): $65.10
1-Yr. Return: 18.42%
Expense Ratio: 0.10%
Net Assets (millions): $4,008
1-Yr. Return: 18.42%
Expense Ratio: 0.10%
Net Assets (millions): $4,008
PowerShares KBW Regional Banking ETF (KBWR)
Estimated 1-Yr. Net Share Class Flows (millions): $75.06
1-Yr. Return: 22.60%
Expense Ratio: 0.35%
Net Assets (millions): $179
1-Yr. Return: 22.60%
Expense Ratio: 0.35%
Net Assets (millions): $179
iShares US Financials (IYF)
Estimated 1-Yr. Net Share Class Flows (millions): $112.72
1-Yr. Return: 11.59%
Expense Ratio: 0.44%
Net Assets (millions): $1,704
1-Yr. Return: 11.59%
Expense Ratio: 0.44%
Net Assets (millions): $1,704
