Despite another rough week for US equities, investors didn’t throw in the towel. Instead, they started buying into broad market US equity index ETFs.
The popular focus on emerging market equities in the present yield-oriented environment was a major topic during the last trading week.
The Financial Select Sector SPDR Fund (XLF) was hit the hardest during the last trading week. It lost almost 1.5%.
Investors seem undecided about US equities’ future direction. This was reflected in last week’s “roller coaster market” in the U.S. Equity Index ETF’s performance.
After a big miss in the NFP headline number and downward revisions to the prior month on June 3, we’ve seen a reversal in US index-based ETF flows.
US GICS (global industry classification standard) sector ETF flows reflected event-specific positioning during the trading week ending June 3, 2016.
Among the top ten ETF inflows and outflows on June 3, we can see a “risk-off” fund flow picture that goes hand in hand with the NFP miss that day.
On the international front, Japan’s Prime Minister, Shinzo Abe, did not provide the fiscal stimulus details that investors had hoped for.
Defensive sectors seem to be preferred amid the rally in equities.
Let’s examine the top ten ETF inflows and outflows within the Market Realist universe.
Do flows trickle into Japan as emerging market currency fears loom once again?
Inflows into US index-based ETFs last week supported the rebound in equities. Let’s take a closer look.
Year-to-date, shares of KCE have fallen 11.2% as asset management companies have been hit hard by sharp falls in their trading commissions.
KIE is the most liquid insurance ETF available in the country and is also among the cheapest, with an expense ratio of 0.35%.
With assets under management of $1.7 billion, KRE is the largest and most heavily traded regional bank ETF in the United States.
The SPDR S&P Bank ETF (KBE) has a market capitalization of $2.3 billion as of March 24, 2016. Its trading volume is $4.1 billion shares.
The iShares Dow Jones US Financial Sector ETF (IYF) has a market capitalization of $1.1 billion. On average, shares worth $7.8 million trade hands each day.
As of March 24, 2016, VFH has a market capitalization of $3.4 billion, making it the second-largest financial ETF after XLF.
The Financial Select Sector SPDR ETF (XLF) attracts the most attention among financial ETFs in the US. 87% of the fund is composed of large-cap stocks.
With the growing economy and global investment horizons, investments have shifted beyond the traditional options to specialized REITs.