ETF Fund Flows (Week Ending 2/1/08)

In sum, across all 650 U.S. ETFs on the market for more than a week, there was a net $8.2 billion in redemption activity last week. All told, there were 141 ETFs with net creation activity and 119 ETFs with net redemption activity.

Largest Net Creations

No funds broke the $1 billion mark for net creation activity last week, which was marked by strong net redemptions on an industry basis. The leading fund for creation activity was the iShares MSCI Emerging Markets (EEM) ETF, with $667 million, followed by the ProShares UltraShort Financials at $384 million.

Scanning down the list, the strong creation activity in the KBW Regional Banking (KRE) and KBW Bank (KBE) ETF stands out; it remains to be seen if those funds were created for long demand or to (perhaps more likely) fuel short shares.

Vanguard makes a strong showing this week, with four funds landing in the top 20, reflecting slow but steady cash flow into that ETF family.

Top 20 ETFs By Creation Activity - Week Ending February 1, 2008
Fund	Ticker	Creation Shares	Dollar Value
iShares MSCI-Emerging Markets	EEM	4,950,000	$666,715,500
ProShares UltraShort Financials	SKF	3,975,000	$384,104,250
iShares Lehman 20+ Year Treasury Bond	TLT	3,300,000	$312,873,000
United States Oil Fund	USO	3,800,000	$276,602,000
SPDR S&P Metals & Mining	XME	3,650,000	$240,097,000
KBW Regional Banking	KRE	4,750,000	$183,920,000
KBW Bank	KBE	3,400,000	$158,270,000
Vanguard Emerging Markets	VWO	1,604,990	$149,793,717
ProShares UltraShort S&P 500	SDS	2,400,000	$145,680,000
Vanguard Total Market	VTI	858,340	$117,129,076
Market Vectors- Gold Miners	GDX	2,200,000	$110,242,000
Vanguard Dividend Appreciation	VIG	2,000,000	$106,960,000
PowerShares DB Agriculture	DBA	2,800,000	$103,320,000
iShares Lehman TIPS Bond	TIP	800,000	$87,568,000
iShares MSCI-Hong Kong	EWH	4,350,000	$85,260,000
iShares Lehman 7-10 Year Treasury Bond	IEF	900,000	$80,730,000
iShares S&P 100 Index	OEF	1,250,000	$80,650,000
Select Sector SPDR-Industrial	XLI	1,950,000	$72,676,500
iShares Russell MidCap Value	IWS	500,000	$67,380,000
Vanguard Growth	VUG	1,100,000	$65,395,000

Largest Net Redemptions

The list of net redemption activity is more robust, with four funds marking over $1 billion in net redemptions, spearheaded by a $3.1 billion pullout from the iShares Russell 2000 ETF (IWM).

Large-cap US funds turn up in big numbers as well, with the iShares S&P 500 (IVV) and S&P 500 SPDR (SPY) funds notching $1.7 and $1.4 billion in redemptions, respectively. Five of the Select Sector SPDR funds also showed net redemptions, with pullbacks in Energy, Consumer Discretionary, Utilities, Materials and Technology.

Top 20 ETFs By Redemption Activity - Week Ending February 2, 2008
Fund	Ticker	Creation Shares	Dollar Value
iShares Russell 2000	IWM	(43,800,000)	($3,111,552,000)
Select Sector SPDR-Financial	XLF	(74,950,000)	($2,172,800,500)
iShares S&P 500	IVV	(12,350,000)	($1,705,164,500)
S&P 500 SPDR	SPY	(9,800,000)	($1,350,538,000)
Select Sector SPDR-Energy	XLE	(12,550,000)	($885,026,000)
DJIA DIAMONDS	DIA	(4,300,000)	($543,563,000)
Select Sector SPDR-Consumer Discretionary	XLY	(15,000,000)	($486,000,000)
iShares DJ US Real Estate	IYR	(5,600,000)	($368,200,000)
iShares Russell 1000 Value	IWD	(4,350,000)	($336,168,000)
iShares MSCI-Japan	EWJ	(19,800,000)	($252,648,000)
iShares Russell 1000 Growth	IWF	(4,400,000)	($247,192,000)
Select Sector SPDR-Utilities	XLU	(5,550,000)	($220,057,500)
Select Sector SPDR-Materials	XLB	(5,450,000)	($218,272,500)
Select sector SPDR-Technology	XLK	(7,150,000)	($167,596,000)
ProShares Ultra QQQ	QLD	(2,025,000)	($154,730,250)
SPDR S&P Homebuilders	XHB	(4,400,000)	($98,692,000)
PowerShares QQQ Trust	QQQQ	(1,800,000)	($82,098,000)
iShares Russell 1000	IWB	(1,050,000)	($78,844,500)
iShares Lehman 1-3 Year Treasury Bond	SHY	(900,000)	($75,132,000)
ProShares UltraShort QQQ	QID	(1,350,000)	($64,975,500)

Data from the American Stock Exchange.

Written by Matthew Hougan