uploads/2015/09/us-f51.png

US Equities Saw Inflows on Valuations and Relative Performance

By

Updated

Inflows

In the week ended September 25, 2015, US equities saw total inflows of $673 million compared to outflows of $1.66 billion in the previous week. The equities attracted positive flows after long gestation on an improved housing market, revised GDP growth in 2Q15, and global slowdown.

The US economy reported a mixed set of data with new housing sales rising, whereas existing home sales, durable order goods, and consumer sentiment fell during September. Mutual fund companies like American Funds, Vanguard, T. Rowe Price (TROW), and Janus Capital Group (JNS) would likely be negatively affected by a fall in investments.

Article continues below advertisement

ETF investment outflows

The ETF market has fallen significantly to more than $3 trillion over the span of just a decade. US equities form more than 65% of the total allocation. In the week ended September 25, the ETFs that saw a combined net outflow of $9.0 billion include the SPDR S&P 500 (SPY), the Vanguard Small-Cap (VB), the Vanguard Mid-Cap (VO), the iShares U.S. Real Estate (IYR), the First Trust Dow Jones Internet (FDN), the SPDR S&P MidCap 400 (MDY), the Schwab U.S. Small-Cap (SCHA), the Industrial Select SPDR (XLI), the iShares Russell 1000 Growth (IWF), and the Vanguard Small-Cap Value (VBR). Investors pulled money from small caps, mid caps, index funds, industrials, and real estate.

ETF investment inflows

ETFs that attracted investments during the week ended September 25 include the iShares Russell 2000 (IWM), the Technology Select SPDR (XLK), the Utilities Select SPDR (XLU), the Consumer Discretionary Select SPDR (XLY), the iShares 1-3 Year Treasury Bond (SHY), the PowerShares QQQ (QQQ), and the Vanguard FTSE Developed Markets (VEA). Together, these funds attracted $2.0 billion in investments.

Investors deployed funds in technology, consumers, and utilities. Asset managers such as State Street (STT), Vanguard, and BlackRock (BLK) are major players in ETF offerings in the United States, Europe, and Asia.

Advertisement

More From Market Realist