ETF Flow | SPY Saw 2100M+ Weekly Inflow; Funds Rushed to Big Tech Stocks

Market Overview

U.S. stocks surged to close out the trading week last Friday after a report said the U.S. Federal Reserve will likely debate on a smaller interest rate hike in December, raising hopes the central bank may be poised to adopt a less aggressive policy stance.

Some Fed officials have begun sounding out their desire to slow down the pace of increases soon, and how to signal plans to approve a smaller increase in December.

For the last week (Oct. 17-Oct. 21), the S&P 500 climbed 4.74%, the Dow gained 4.89% and the Nasdaq rose 5.22%. Each of the three major indexes notched their biggest weekly percentage gains in four months.

Top 10 ETF Creations (Oct. 17-Oct. 21)

Source: Bloomberg

S&P-related ETFs saw a huge weekly inflow last week. The total inflow amount of SPDR S&P 500 ETF Trust reached 2,156 million and ranks first among all ETFs. The S&P 500 index climbed 4.74% to 3,752.75 last week. Other S&P related ETFs, such as Vanguard S&P 500 ETF and iShares Core S&P Mid-Cap ETF, saw an inflow of 693 and 595 million, respectively.

Big tech giants Microsoft, Alphabet, Meta Platforms, Apple, and Amazon, which alone represent roughly a quarter of the S&P 500 index, are scheduled to release earnings this week. Thus, ETFs related to the technology sector drew huge fund inflow last week. iShares US Technology ETF、iShares Core S&P 500 ETF saw an inflow of 1,322 and 1,190 million, respectively.

Top 10 Redemptions

Source: Bloomberg

A total amount of $1218 million of iShares Russell 2000 ETF outflowed last week.

Invesco QQQ Trust saw an outflow of 785 million.

Regarding sector ETFs, Utilities Select Sector SPDR Fund, Vanguard Information Technology ETF saw a great amount of outflow last week.