How quickly things can change! Investor sentiment started to feel a little shaky last week.
Cumulative net flows into SPDR’s S&P 500 ETF Trust (SPY) reached a YTD (year-to-date) high last Monday. However, inflows reversed sharply.
Those who recognized the upside potential in emerging market equities in early 2016 are likely already in the “hangover stage” of celebrating sizable YTD (year-to-date) returns.
It’s a fact that investors buy into GLD when equity markets turn lower in times of elevated uncertainty.
As we hinted at in Part 2 of this series, market participants seem to become more comfortable as major equity index ETFs rose to highs last Thursday.
The optimism among US equity bulls is simply remarkable, reflecting both in ETF performance and fund flows.
YTD (year-to-date) asset inflows into emerging market equity ETFs have been remarkably broad.
The upside reversal in emerging market equity ETFs has become one of the most remarkable investment themes in 2016. Investors don’t want to miss out.
In the current low-yield environment and with US equities at extremes, investors are trying to boost returns by reallocating capital into the most cost-efficient ETFs.
US GICS sector ETFs witnessed net outflows for the second week. In aggregate, investors pulled out ~$400 million. Last week, the flows were concentrated.
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 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 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.