Leveraged, Inverse and VIX ETFs Grow

WILLIAMSTOWN, Mass. ( TheStreet) -- A number of leveraged and inverse ETFs attracted capital at a fast clip last month, including ProShares UltraPro Short S&P 500 ( SPXU) and iShares DB Gold Short ETN ( DGZ). SPXU saw $72 million net flow into the fund and finished July with $69 million in assets. DGZ saw net inflow of $31 million and finished the month with $44 million in assets.

Aside from the leveraged and inverse ETFs, here are the ETFs with the largest inflows as a percentage of assets. iPath S&P 500 VIX Short Term Futures ETN ( VXX) saw $273 million flood into the fund as it grew to $408 million in total assets. Market Vectors Brazil Small Cap ( BRF) had net inflows of $59 million, while $34 million poured into iShares Peru ( EPU). Market Vectors Indonesia ( IDX) gathered $27 million in assets, while iPath DJ UBS Nickel ETN ( JJN) and iPath DJ UBS Sugar ETN ( SGG) each attracted $7 million in assets.

Other notable growers were Vanguard Mega Cap 300 Growth ( MGK), which saw assets grow to $494 million after gaining $203 million in net inflows. ProShares UltraShort FTSE/Xinhua China 25 ( FXP) added $117 million and closed July with $270 million in assets.

ETFs seeing major outflows as a percentage of assets were led by Direxion Daily Financials Bull 3X ( FAS). It went from $1,771 million in assets at the end of June to $1,041 million at the end of July after suffering a $984 million outflow. On a percentage basis, but far less in terms of nominal dollars, iPath DJ UBS Cocoa ETN ( NIB) saw its assets fall 50% after $2 million left the fund. ProShares UltraShort Silver ( ZSL), PowerShares Dynamic Food & Beverage ( PBJ) and PowerShares Dynamic Banking ( PJB) rounded out the bottom five.

Repeating the findings from yesterday's article on the funds with the largest inflows and outflows, it's obvious that bearish investors are finding a use for the inverse ETFs as well as short-term VIX futures-tracking VXX. That fund rolls the first and second month VIX futures contracts. VXX declined as the market rallied, sending shares down 45% from $113 at the end of March.

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