ETF Fund Flows (Week Ending 2/22/08)

By Matthew Hougan

Investors had $4.7 billion in net redemptions from U.S.-listed exchange-traded funds for the week ending February 22, 2008, as the pullback in funds from the ETF industry continues. The number of ETFs with net creation activity far outnumbered the number with net redemption activity - 138 to 60 - but the creation activity occurred in much smaller average amounts.

Largest Net Creations

The PowerShares QQQ Trust (QQQQ) led all ETFs with $881 million in net creation activity last week, while the iShares DJ US Real Estate ETF (IYR) also had a good week, with $438 million in net creation activity.

Beyond that, six ProShares UltraShort ETFs broke into the top 20 this week, headlined by the ProShares UltraShort FTSE/Xinhua China 25 ETF (FXP) at $204 million. Clearly, investors are none too keen on the market these days.

Top 20 ETFs By Creation Activity - Week Ending 2/22/08
Fund	Ticker	Creation Shares	Dollar Value
PowerShares QQQ Trust	QQQQ	20,200,000	$881,326,000
iShares DJ US Real Estate	IYR	7,000,000	$437,780,000
S&P 400 MidCap SPDR	MDY	2,825,000	$409,201,250
Select Sector SPDR-Energy	XLE	5,100,000	$378,777,000
DJIA DIAMONDS	DIA	2,600,000	$319,306,000
Select Sector SPDR-Financial	XLF	9,400,000	$250,134,000
iShares Lehman TIPS Bond	TIP	2,000,000	$215,280,000
iShares MSCI-Emerging Markets	EEM	1,500,000	$210,540,000
ProShares UltraShort FTSE/Xinhua China 25	FXP	2,175,000	$204,167,250
PowerShares DB Agriculture	DBA	4,600,000	$186,116,000
ProShares UltraShort Financials	SKF	1,125,000	$126,630,000
ProShares UltraShort QQQ	QID	2,400,000	$124,680,000
ProShares UltraShort S&P 500	SDS	1,950,000	$124,117,500
KBW Bank	KBE	2,900,000	$123,424,000
ProShares UltraShort Oil & Gas	DUG	3,000,000	$120,120,000
iShares Russell 3000	IWV	1,300,000	$101,049,000
ProShares UltraShort MSCI Emerging Markets	EEV	1,200,000	$96,972,000
iShares S&P Latin America 40	ILF	350,000	$89,572,000
iShares MSCI-Taiwan	EWT	4,800,000	$70,848,000
Select Sector SPDR-Technology	XLK	3,150,000	$70,339,500

Data from the American Stock Exchange.

Largest Net Redemptions

On the flip side, the S&P 500 SPDR (SPY) continued to get hammered with heavy redemptions, with investors pulling $6 billion out of the fund in a single week. That's the fourth straight week of net redemptions for SPY - $5.5 billion last week, $2.9 billion the week before and $1.7 billion the week before that - for a total of $16.1 billion in redemptions over the last month. There are only six ETFs (including SPY) that even have $16.1 billion in net assets.

Meanwhile, the iShares Russell 2000 ETF (IWM) also got dinged with $1.8 billion in net redemptions, while the iShares MSCI EAFE lost $515 million.

Investors pulled a quarter-billion dollars out of the iShares FTSE/Xinhua China 25 ETF (FXI); together with the heavy inflows into the ProShares UltraShort China ETF, that tells me that ETF investors are souring on the Chinese market.

Top 20 ETFs By Redemption Activity - Week Ending 2/22/08
Fund	Ticker	Creation Shares	Dollar Value
S&P 500 SPDR	SPY	(44,450,000)	($5,976,302,500)
iShares Russell 2000	IWM	(26,200,000)	($1,818,018,000)
iShares MSCI-EAFE	EFA	(7,200,000)	($514,512,000)
iShares FTSE/Xinhua China 25	FXI	(1,700,000)	($251,362,000)
iShares S&P 500	IVV	(1,700,000)	($228,990,000)
iShares Nasdaq Biotech	IBB	(2,700,000)	($203,796,000)
Select Sector SPDR-Utilities	XLU	(3,500,000)	($136,080,000)
iShares DJ US Transportation	IYT	(1,600,000)	($134,352,000)
iShares Lehman 20+ Year Treasury	TLT	(1,400,000)	($129,290,000)
Select Sector SPDR-Materials	XLB	(2,700,000)	($110,808,000)
Rydex S&P Equal Weight	RSP	(2,000,000)	($88,480,000)
United States Oil Fund LP	USO	(1,100,000)	($85,723,000)
Select Sector SPDR-Industrial	XLI	(2,300,000)	($84,157,000)
iShares Russell 1000 Growth	IWF	(1,400,000)	($77,532,000)
SPDR S&P Retail	XRT	(2,300,000)	($74,796,000)
iShares Lehman 1-3 Year Treasury	SHY	(800,000)	($66,896,000)
iShares Russell 1000	IWB	(850,000)	($62,390,000)
Select Sector SPDR-Consumer Discretionary	XLY	(1,850,000)	($58,423,000)
iShares Russell MidCap	IWR	(600,000)	($57,630,000)
iShares MSCI-Spain	EWP	(975,000)	($55,038,750)

Data from the American Stock Exchange.

Creation Activity By Provider

Starting this week, the ETF Fund Flows Report will include a new figure highlighting fund flows by ETF provider.

PowerShares leads the charge this week with $1.2 billion, thanks to the strong inflows into the QQQQs. ProShares is next with nearly $1 billion in new assets, followed by Vanguard at $310 million.

The reverse side of the ledger is dominated by the two big names in the industry: SSgA saw $4.8 billion in net redemption activity, while BGI suffered $2.4 billion in redemptions.

Creation/Redemption Activity By Fund Company - Week Ending 2/22/08
Fund Company	Net Creation/Redemption Activity
PowerShares	$1,230,568,000
ProShares	$964,782,000
Vanguard	$310,299,679
Van Eck	$79,572,500
WisdomTree	$64,068,500
MacroShares	$8,016,000
First Trust	$7,775,000
SPA ETF	$0
Ziegler	$0
Greenhaven	$0
FocusShares	$0
Fidelity	$0
HOLDRS	($1,668,516)
Xshares	($3,078,000)
Claymore	($39,960,000)
Rydex	($60,794,000)
Victoria Bay	($111,715,000)
BGI	($2,389,145,750)
SSgA	($4,810,150,750)

Data from the American Stock Exchange.

Comments

[GregGH]

How can we link these weekly updates into a YTD chart ?