The Trend That Defined November's ETF Flows

While the iShares Core U.S. Aggregate Bond ETF (NYSEArca: AGG) was the most popular ETF of November with close to $2.7 billion in inflows, investors largely shunned fixed-income assets ahead of rising interest rate speculation. For instance, among the top ETF redemptions, the iShares 1-3 Year Treasury Bond ETF (NYSEArca: SHY) saw $1.4 billion in net outflows, iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF) lost $868.9 million in outflows, SPDR Barclays 1-3 Month T-Bill (NYSEArca: BIL) saw assets drop by $731 million, iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) lost $726.4 million, SPDR Barclays High Yield Bond ETF (NYSEArca: JNK) experienced $525.3 million in outflows and PowerShares Senior Loan Portfolio (NYSEArca: BKLN) shrunk by $435.5 million.

Additionally, investors yanked $1.8 billion from SPDR Gold Shares (NYSEArca: GLD) and $949.8 million from rate-sensitive e Utilities Select Sector SPDR (NYSEArca: XLU) in anticipation of a Federal Reserve rate hike in December.

“S&P Capital IQ believes investors can use ETF inflow and outflow to keep up with market trends, as these products have become a go-to-vehicle to get diversified low-cost exposure to various investment styles,” Rosenbluth said.

For more information on ETF flows, visit our ETF Performance Reports category.

Max Chen contributed to this article.