All major US indexes rose higher last week, driven by continued positive trade sentiment. Friday saw a large spike as both Chinese and US officials announced tariff reductions.

Despite the enthusiasm over a phase one trade deal, weak economic data negatively impacted fixed income markets at the end of the week.

In the UK, the conservatives won the general election by a landslide, which helped to ease Brexit uncertainty and helped European equities rise over the week.

Asian markets rose on the same trade sentiments, with the majority of gains seen on Friday, despite official statements from Beijing being made hours after the Asian markets close.

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One Week ETF Trends

US Listed ETFs – Equity – 1 Week Best & Worst Returns

Copper ETF COPX led equity returns for last week, followed by Mexico fund EWW and South Korea fund EWY.

MLPs were also a winning category, with MLPB, AMUB, and MLPO all gaining at least 5% for the week.

Real estate ETFs took a hit last week, with all 10 names in the worst performing category being REITs or real estate ETFs.

US Listed ETFs – Fixed Income – 1 Week Best & Worst Returns

Emerging markets sovereign debt ETF PCY led fixed income ETF gains for the week, with other emerging markets sovereign debt ETFs EMHY, VWOB, LEMB, ELD, and JPMB also making the list.

Long-term Treasury ETFs DTYL and LGOV saw the worst performance for the week.

US Listed ETFs – Equity – 1 Week Top Inflows & Outflows

Index ETFs IVV, QQQ, SPY, and VTI led equity inflows for the week. Fixed Income Emerging Market ETFs IEMG and EEM also saw significant inflows last week.

The financial XLF and utilities XLU select sector ETFs saw the largest equity outflows.

US Listed ETFs – Fixed Income -1 Week Top Inflows & Outflows

Bond index ETFs AGG and BND led fixed income flows last week, while 7-10 year treasury bond ETF IEF saw the largest outflows.

On-Screen Liquidity Momentum

Top 10 secondary-market volume increases where ADV 5-day increased substantially over ADV 20-day and ADV 5-day > $10mm

ETF Name Ticker %Diff.
SPDR Russell 1000 Momentum Focus ETF ONEO 396%
Principal U.S. Mega-Cap Multi-Factor Index ETF USMC 356%
VictoryShares US 500 Volatility Wtd ETF CFA 267%
FlexShares Morningstar Global Upstream Natural Resources Index Fund GUNR 265%
iShares Currency Hedged MSCI Eurozone ETF HEZU 236%
ETFMG Prime Mobile Payments ETF IPAY 230%
iShares MSCI France ETF EWQ 214%
First Trust Utilities AlphaDEX Fund FXU 210%
IQ 500 International ETF IQIN 200%
iShares Core MSCI Europe ETF IEUR 190%

Industry Changes

Launches

  • KFA Dynamic Fixed Income ETF KDFI, 46bps
  • Innovator S&P 500 Power Buffer ETF – December PDEC, 79bps
  • Innovator S&P 500 Buffer ETF – December BDEC, 79bps
  • Anfield U.S. Equity Sector Rotation ETF AESR, 142bps

Closings

  • Invesco plans to shut down 42 ETFs with a total of $1B AUM in an effort to consolidate their offerings after two major acquisitions the past few years. The closures are set to be finalized by February 14th.

Filings

  • Invesco Intermediate Bond Factor ETF
  • Invesco Multi-Sector Bond Income Factor ETF 
  • Invesco Short-Term Bond Factor ETF
  • Invesco Corporate Bond Factor ETF
  • Invesco High Yield Bond Factor ETF
  • TrueMark AI & Deep Learning ETF
  • TrueMark ESG Active Opportunities ETF 
  • iShares Factors US Small Blend Style ETF     
  • Franklin Liberty Ultra Short Bond ETF 
  • iShares MSCI Kuwait ETF       

Expense Ratio Changes

  • Schwab lowered expense ratios on 5 of their fixed income ETFs
    • Schwab Short-Term U.S. Treasury ETF SCHO, 6→5bps
    • Schwab 5-10 Year Corporate Bond ETF SCHI, 6→5bps 
    • Schwab Intermediate-Term U.S. Treasury ETF SCHR, 6→5bps
    • Schwab Long-Term U.S. Treasury ETF SCHQ, 6→5bps
    • Schwab 1-5 Year Corporate Bond ETF SCHJ, 6→5bps
  • First Trust made expense ratio changes to 12 of their funds
    • First Trust Technology AlphaDEX Fund FXL, 63→61bps
    • First Trust Large Cap Core AlphaDEX Fund FEX 61→60 bps          
    • First Trust Large Cap Value AlphaDEX Fund FTA 62→60bps 
    • First Trust Health Care AlphaDEX Fund FXH, 63→62bps              
    • First Trust Mid Cap Core AlphaDEX Fund FNX, 62→61bps        
    • First Trust Small Cap Core AlphaDEX Fund FYX, 66→63bps        
    • First Trust Industrials/Producer Durables AlphaDEX Fund FXR, 62→63bps
    • First Trust Multi Cap Growth AlphaDEX Fund FAD, 69→66bps
    • First Trust Materials AlphaDEX Fund FXZ, 64→65bps  
    • First Trust Energy AlphaDEX Fund FXN, 63→65bps
    • First Trust Small Cap Value AlphaDEX Fund FYT, 76→72bps          

Other Changes

  • The Salt Low truBeta US Market ETF LSLT fee waiver has now expired, and owners will now pay the 29bps expense ratio.
Scott McKenna

Scott McKenna

Sales & Marketing Associate