International Inflows Eclipse $4B, Small Caps Set Performance Pace

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Market Overview

The Global Ex-U.S. Size & Style market encompasses 308 ETFs from 84 issuers, with total Assets Under Management (AUM) of $1,351B. This week, the market saw a continuation of the trend of investors favoring international equities, with the channel seeing net inflows of $4.00B over the last five days. Year-to-date (YTD) and 1-year net flows stand at $90.37B and $131.79B, respectively. The week’s performance was led by small and mid-cap stocks, while blend strategies, particularly in the large-cap space, were the primary beneficiaries of new capital.

Weekly Performance & Flows Recap

This week’s performance was characterized by strength in smaller capitalization stocks, with the Global Ex-U.S. Small | Mid Cap segment leading the way with a week-to-date (WTD) return of +1.65%. In contrast, the Emerging Large Cap segment was the weakest performer, posting a WTD return of -0.08%. Over a one-year period, the Global Ex-U.S. Small | Mid Cap category has been the top performer. On the flows front, the channel saw a total 5-day net inflow of $4.00B. The Global Ex-U.S. Large Cap – Blend category attracted the most capital with a 5-day inflow of +$2,667M, bringing its YTD total to +$58,971M. The Emerging Small | Mid Cap category saw the most significant withdrawals, with a 5-day outflow of -$26M, and a YTD total of -$489M.

Global Ex-U.S. | AUM: $1,029.1B

  • Returns:
    • Large Cap – Growth: WTD: +0.73% | 3-Month: +5.52% | YTD: +18.06%
    • Large Cap – Blend: WTD: +0.97% | 3-Month: +7.90% | YTD: +23.45%
    • Large Cap – Value: WTD: +1.22% | 3-Month: +10.08% | YTD: +29.07%
    • Small | Mid Cap: WTD: +1.65% | 3-Month: +13.41% | YTD: +29.34%
  • Top 3 Performers (WTD):
    • First Trust International Equity Opportunities ETF (FPXI): +2.69%
    • VanEck Morningstar International Moat ETF (MOTI): +2.24%
    • Sparkline International Intangible Value ETF (DTAN): +2.12%
  • Bottom 3 Performers (WTD):
    • Nuveen ESG International Developed Markets Equity ETF (NUDM): -0.66%
    • Pacer Nasdaq International Patent Leaders ETF (PATN): -0.43%
    • Alpha Architect International Quantitative Momentum ETF (IMOM): -0.34%
  • Flows:
    • Large Cap – Growth: 5-Day: +$804M | 90-Day: +$3,497M | YTD: +$940M
    • Large Cap – Blend: 5-Day: +$2,667M | 90-Day: +$27,750M | YTD: +$58,971M
    • Large Cap – Value: 5-Day: +$355M | 90-Day: +$6,126M | YTD: +$13,040M
    • Small | Mid Cap: 5-Day: +$118M | 90-Day: +$2,165M | YTD: +$2,689M
  • Top 3 Inflows (5-Day):
    • Vanguard FTSE Developed Markets ETF (VEA): +$940M
    • VictoryShares International Free Cash Flow Gr.. (GRIN): +$640M
    • iShares Core MSCI EAFE ETF (IEFA): +$585M
  • Top 3 Outflows (5-Day):
    • Schwab International Equity ETF (SCHF): -$438M
    • Xtrackers MSCI EAFE Hedged Equity ETF (DBEF): -$92M
    • Fidelity International Value Factor ETF (FIVA): -$46M

Emerging Markets | AUM: $322.6B

  • Returns:
    • Large Cap: WTD: -0.08% | 3-Month: +9.01% | YTD: +17.92%
    • Small | Mid Cap: WTD: +0.59% | 3-Month: +10.45% | YTD: +14.71%
  • Top 3 Performers (WTD):
    • iShares MSCI BIC ETF (BKF): +2.16%
    • First Trust Emerging Markets AlphaDEX Fund (FEM): +1.88%
    • iShares Currency Hedged MSCI Emerging Markets ETF (HEEM): +1.46%
  • Bottom 3 Performers (WTD):
    • Rayliant Quantamental Emerging Market ex-China Equity ETF (RAYE): -1.93%
    • Putnam Emerging Markets ex-China ETF (PEMX): -1.79%
    • Macquarie Focused Emerging Markets Equity ETF (EMEQ): -1.59%
  • Flows:
    • Large Cap: 5-Day: +$87M | 90-Day: +$9,901M | YTD: +$15,217M
    • Small | Mid Cap: 5-Day: -$26M | 90-Day: -$97M | YTD: -$489M
  • Top 3 Inflows (5-Day):
    • Avantis Emerging Markets Equity ETF (AVEM): +$117M
    • Capital Group New Geography Equity ETF (CGNG): +$67M
    • SPDR S&P Emerging Markets Dividend ETF (EDIV): +$14M
  • Top 3 Outflows (5-Day):
    • iShares MSCI Emerging Markets ex China ETF (EMXC): -$143M
    • SPDR S&P Emerging Markets Small Cap ETF (EWX): -$20M
    • Fidelity Emerging Markets Multifactor ETF (FDEM): -$12M

Issuer and Product Landscape

Market Share: The top three issuers by AUM market share are iShares (40.14%), Vanguard (33.63%), and Schwab (7.02%).

Issuer Flows: Vanguard attracted the most absolute net inflows over the past week.

Product Development: There have been 11 new ETFs launched in the past 3 months, with Harbor and VictoryShares leading the way with 2 launches each. There have been 5 ETF closures in the past 3 months, with First Trust and Hartford having the most closures with 2 each.

  • Weekly Issuer Flow Leaders (Absolute):
    • Top 3 Inflows:
      1. Vanguard: 5-Day: +$1,414M | 30-Day: +$5,955M | YTD: +$28.15B
      2. iShares: 5-Day: +$1,333M | 30-Day: +$3,273M | YTD: +$21.72B
      3. VictoryShares: 5-Day: +$651M | 30-Day: +$2,057M | YTD: +$2.31B
    • Top 3 Outflows:
      1. Schwab: 5-Day: -$379M | 30-Day: +$90M | YTD: +$1.16B
      2. Xtrackers: 5-Day: -$95M | 30-Day: -$455M | YTD: +$0.67B
      3. WisdomTree: 5-Day: -$26M | 30-Day: -$128M | YTD: -$0.75B

For a detailed breakdown of all data, including individual fund performance and flows, please refer to the full ETF Action weekly reports.

Disclosures

This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.

This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.

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