World’s Biggest ETF Gets Record $21-B Inflow

An unprecedented amount of cash flowed into the world’s largest and oldest exchange-traded fund last week, as stocks rallied to near-record highs after the Federal Reserve indicated it could cut interest rates next year, Emily Graffeo and Vildana Hajric reported for Bloomberg.

State Street’s $478 billion SPDR S&P 500 ETF raked in $20.8 billion on Friday, the biggest inflow since the fund’s inception in 1993. I Photo: State Street SPDR ETFs X

State Street’s $478 billion SPDR S&P 500 ETF raked in $20.8 billion on Friday, the biggest inflow since the fund’s inception in 1993. According to Bloomberg Intelligence, it was the largest one-day flow for any ETF.

For the week, the ETF garnered more than $24 billion, also a record, data compiled by Bloomberg showed.

SPY’s inflows coincided with several events known to increase trading activity, said Matt Bartolini, head of SPDR Americas Research at State Street Global Advisors.

Friday was the final trading day before the S&P 500 and Nasdaq 100’s rebalancings went into effect, which can prompt funds managing trillions of dollars to readjust to align with new index compositions. Roughly $5 trillion of options also expired on the same day, which generally sees Wall Street managers roll over existing positions or start new ones.

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