Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

August ETF Asset Report

By Zacks Investment ResearchStock MarketsAug 30, 2016 11:24PM ET
August ETF Asset Report
By Zacks Investment Research   |  Aug 30, 2016 11:24PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Following an outstanding July, August has been moderate for U.S. equities. Still-low Treasury yields despite an improving U.S. economy seem to have dominated investor sentiment. However, strengthening Fed rate hike bets has left a last-minute impact on the ETF monthly asset report and could prove to be game changers in the days ahead.

Let’s find out the top gainers and losers in terms of asset growth in August (as of August 29, 2016) (source:

Emerging Markets Earns Attention

The emerging markets (EM) equities have been at the helm in August with the ultra-popular emerging market ETF iShares MSCI Emerging Markets ETF EEM taking the top spot. EEM has attracted about $2.19 billion in assets in August while iShares Core MSCI Emerging Markets ETF IEMG has garnered over $1.15 billion in assets in the month (as of August 29, 2016), taking the fifth spot. Yet another EM ETF Vanguard FTSE Emerging Markets ETF VWO has pulled in close to $1.15 billion in assets in the month.

Better growth prospects, signs of stabilization in China, comparatively higher yield and more resilience to the Fed rate hike bets than what we saw in 2013 has made this segment a winner.

Tech-Laden Nasdaq: A Bright Spot

Tech-heavy Nasdaq-100-based ETF PowerShares QQQ Trust (QQQ has gathered about $1.61 billion in assets in August. A slew of positive earnings releases and the return of risk-on sentiments to the market (after the Brexit induced sell-off) on a flurry of upbeat U.S. economic data favored this growth-oriented fund. The fund has about 57% exposure to the IT sector (read: Time to Buy These Tech ETFs?).

Corporate Bond ETFs in Favor

Since yields on the 10-year U.S. Treasury bonds remained at very low levels, the lure for higher-yielding corporate bond ETFs returned. Thus, iShares iBoxx $ Investment Grade Corporate Bond LQD has attracted about $1.23 billion in net assets in the month.

Also, the aggregate bond ETF iShares Core U.S. Aggregate Bond ( (AX:AGG) ) has accumulated about $933.0 million in assets. Notably, AGG puts about 38% of its assets in U.S. Treasuries while corporate bonds also grab a major share of it. Its credit quality is high with about 71% bonds being AAA-rated.

Industrial Sector is Back

Industrial Select Sector SPDR Fund XLI has added about $767.6 million in assets in August as the sector is on a recovery mode. Impressive data for new orders for U.S. manufactured capital goods lately boosted investor sentiment (read: Time to Play These Industrial ETFs?).

Preferred Stock ETF: Another Winner

As bets over a sooner-than-expected rate hike strengthened at the end of the month, investors rushed to high-yielding preferred stock equities ETFs like iShares U.S. Preferred Stock ETF PFF. The fund has amassed about $753.7 million in assets in August (read: ETF Winners & Losers Post Jackson Hole Meet).

SPY: A Surprise Loser

SPDR S&P 500 ETF (NYSE:SPY) (AX:SPY) has lost about $1.25 billion in assets in the month. Investors probably have shown more interest in Vanguard S&P 500 Index Fund VOO which gathered about $1.59 billion in the month till August 29, 2016. Investors should note that VOO charges about 5 bps in fees while SPY charges about 9 bps (net expense ratio). A lower expense ratio could be an advantage of VOO over SPY as both products have the same theme.

Hedged Japan: A Spoiler

WisdomTree Japan Hedged Equity Fund DXJ shed about $1.08 billion in assets as Japan’s economy grew less than expected in Q2. A stronger yen was also a dampener.

Europe Peters Out

WisdomTree Europe Hedged Equity Fund HEDJ, iShares MSCI Eurozone ETF EZU and Deutsche X-trackers MSCI Europe Hedged Equity ETF DBEU shed about $551.4 million, $543.7 million and $396.7 million in assets. Slower growth was probably an overhang for this region.

Low Volatility ETFs Fizzle

Two low volatility ETFs, namelyiShares Edge MSCI Min Volatility USA ETF USMV and PowerShares S&P 500 High Dividend Low Volatility Portfolio SPHD have shed about $412.1 million and $386.2 million in assets in August. Since the broader markets are relatively steady since the start of Q3, low volatility ETFs have lagged slightly.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

SPDR-SP 500 TR (SPY): ETF Research Reports

ISHARS-EMG MKT (EEM): ETF Research Reports

ISHARS-IBX IG (LQD): ETF Research Reports

NASDAQ-100 SHRS (QQQ): ETF Research Reports

SPDR-INDU SELS (XLI): ETF Research Reports

WISDMTR-J HEF (DXJ): ETF Research Reports

ISHARS-EMU IDX (EZU): ETF Research Reports

PWRSH-SP5 HI DV (SPHD): ETF Research Reports

VANGD-SP5 ETF (VOO): ETF Research Reports

WISDMTR-I HE FD (HEDJ): ETF Research Reports

ISHARS-CR US AG (AGG): ETF Research Reports

ISHARS-US PFD S (PFF): ETF Research Reports

DEUTS-XT MS EUR (DBEU): ETF Research Reports

VANGD-FTSE EM (VWO): ETF Research Reports

ISHARS-CR MS EM (IEMG): ETF Research Reports

Original post
August ETF Asset Report

Related Articles

August ETF Asset Report

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email