Among fixed-income options, only the iShares TIPS Bond ETF (NYSEArca: TIP) made it to top 10 most popular ETF plays of the past month, seeing $2.0 billion in net inflows. Treasury inflation-protected securities have grown in popularity in recent months on rising inflationary pressure, especially in recent sessions after the surge in crude oil prices in response to the Organization of Petroleum Exporting Countries’ deal on production cuts, which further fueled inflation expectations.
On the other hand, emerging market assets and safe-haven plays were among the least popular investments of November.
The iShares MSCI Emerging Markets ETF (NYSEArca: EEM) was the most unloved play of the past month, experiencing $3.6 billion in net redemptions. Meanwhile, the iShares J.P. Morgan USD Emerging Markets Bond ETF (NYSEArca: EMB) lost $1.0 billion. Emerging market assets were hit with a double whammy as a strengthening U.S. dollar and protectionist rhetoric out of President-elect Trump weighted on the asset category.
Gold assets also suffered from a blow, with SPDR Gold Shares (NYSEArca: GLD) seeing $2.3 billion in outflows and iShares Gold Trust (NYSEArca: IAU) shrinking by $1.1 billion. The safe-haven gold bullion has been pushed aside in the risk-on environment, lost its luster in light of a stronger USD and became less attractive in a rising rate environment.
Similarly, the iShares Edge MSCI Min Vol USA ETF (NYSEArca: USMV) saw $734 million in outflows and iShares Edge MSCI Min Vol EAFE ETF (NYSEArca: EFAV) lost $689 million as investors turned to riskier assets. Moreover, the low-volatility factor emphasizes areas like healthcare, information technology and consumer staples, or sectors that have underperformed in the recent Trump-induced rally.
Lastly, the iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) saw $520 million in redemptions and SPDR Barclays Short Term Corporate Bond ETF (NYSEArca: SCPB) experienced $478 million in outflows as bond yields rose. Yields on benchmark 10-year Treasury notes moved as high as 2.488% Thursday, or near its highest since September 2014.