ETF Inflows Are near $400 Billion
ETFs saw another week of record inflows even though the markets fell slightly for the second consecutive week. ETFs added $5.4 billion last week.
Over the years, the largest US banks (XLF) have followed different approaches to their equity and FICC (fixed income, currencies and commodities) trading.
Last week, US markets ended on a sour note. The S&P 500 Index (SPY) and the Dow Jones Industrial Average (DIA) fell 0.13% and 0.27%, respectively.
Notwithstanding the market sell-offs, ETF inflows continued to trend higher though with lower intensity.
The five largest US investment banks garnered total advisory and underwriting fees of $7.7 billion in 3Q17.
The S&P 500 Financial Index fell 2.7% last week, dragging down the benchmark index.
According to FactSet, $3.7 billion worth of inflows were added in the ETF last week, which takes the year-to-date total to $388.2 billion.
Large US banks borrowing from the FHLB System more than doubled in the past decade. The advances stood at $706 billion or 65% of its assets as of June.
The S&P 500 Index continued its winning streak last week and reported eight consecutive weeks of gains. The index rose 0.26% week-over-week.
The US offshore rig count was at 20 in the week ending October 27, 2017. The rig count didn’t change from the previous week.
FactSet data show that $16.2 billion worth of inflows were added in the ETF last week, which takes the YTD (year-to-date) total to $384.3 billion.
According to S&P Global Ratings, US banks (C) (GS) and other lenders are holding onto a higher proportion of consumer loans.
The stock markets continued to reach new highs driven by gains in financial and technology stocks.
As the broader stock indexes continued to make new highs, ETFs also continued to witness record inflows.
Goldman Sachs (GS) posted EPS (earnings per share) of $5.02 for 3Q17, which easily beat Thomson Reuters’ consensus estimate of $4.17.
US stocks are rising due to hopes that the Trump Administration will complete a tax deal in the near future that will substantially benefit corporates.
ETF inflows continued to trend higher last week even as the equity markets made new highs. The S&P 500 Index (SPX-INDEX) (SPY) closed at 2,553.2—up 0.86%.
Financial stocks were the biggest drag on the S&P 500—the S&P 500 Financials Index fell 0.90%. All of the major bank stocks were in the red last week.
So far, banks that reported their 3Q17 earnings showed mixed trends. JPMorgan Chase’s revenue and earnings comfortably beat consensus estimates.
Chesapeake Energy’s (CHK) production in 2Q17 was 527.6 Mboed (thousand barrels of oil equivalent per day), which was ~20% lower than Chesapeake Energy’s reported production of 657 Mboed in 2Q16.