QQQ outperformed SPY since the end of June. Investors piled ~$1.6 billion of capital into the tech ETF. SPY’s rallies are an opportunity to unload holdings.
Emerging market equity ETFs continue to attract large capital inflows. In fact, fund inflows are becoming increasingly broader.
The U.S. Bureau of Labor Statistics published the NFP (non-farm payroll) for July at a stable 255,000. This was well above the market’s forecast of 180,000.
The RBA (Reserve Bank of Australia) cut the cash rate by 25 basis points to a record low of 1.5% in the monetary policy meeting on Tuesday.
The ISM published the US manufacturing PMI for July on August 2. The ISM manufacturing PMI came out at 52.6—well below the forecast.
The rise of the actively selective investor becomes more nuanced within the context of our entire ETF universe.
Investor appetite for emerging market exposure has been growing steadily, and last week’s fund flows showed that emerging market bulls are still hungry.
GICS sector ETF flows provide another example of active asset reallocation that we started to discuss in Part 1 of this series, though on a different level.
The rise of actively selective investors may be the next turnaround story of 2016!
Last week‘s ETF fund flows showed the beginning of a remarkable shift in investor behavior and asset allocation.
The BoJ’s monetary policy was the most awaited macro event this week. It was the first major central bank to expand its easing program after the Brexit vote.
The Fed had a meeting on July 27 to decide on the monetary policy. The tone of the Fed’s statement made a case for the September meeting to be a live one.
The overall Ifo business climate suffered a setback in July. Looking at the sector-based performance, the construction and retail sector saw a rise.
The iShares MSCI Emerging Markets ETF (EEM) clearly attracted the largest capital inflows last week.
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) saw by far the largest inflows within our ETF universe last week.
GICS sector ETF flows largely confirmed investor risk aversion and the increasing selectivity that we discussed in Part 1 of this series.
Risk-hungry investors turned into selective optimists last week. This statement may come as a surprise, considering the persistent rise in US equities.
In terms of the major macro data release from the United States (VOO) (QQQ), it would be the FOMC monetary policy release on July 27. 2016.
Mario Draghi was less dovish in the post monetary policy press conference. The press conference started 45 minutes after the monetary policy statement.
The IMF cut its global economic growth forecasts, according to the latest IMF World Economic Output Update dated July 19. The cut in forecasts was expected.