Fund Flows to VFH Are Positive



Fund flows to VFH

Exchange-traded fund investors moved an average of almost $13.9 million into the Vanguard Financials ETF (VFH) in the last quarter. In contrast to the Financial Select Sector SPDR ETF (XLF) and the iShares Dow Jones US Financial Sector ETF (IYF), VFH experienced inflows of $18.6 million during the week ending September 25.

Shares of VFH have fallen 7.79% YTD (year-to-date). Among the largest underlying components of these ETFs, Wells Fargo & Co. (WFC) has fallen 6.09% YTD, while Bank of America (BAC) has fallen 11.18%. Meanwhile, JPMorgan Chase (JPM) has fallen 1.77% during the same period.

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Institutional holdings in VFH increased in 2Q15

Fund flows for VFH and 13F filings of major institutional asset managers for the second quarter of 2015 give a positive picture.

In 2Q15, trade activity by 13F filers showed a 31.23% increase in aggregate shares held by institutional investors and hedge funds. Among the 125 13F filers holding the stock, 28 funds reduced their exposure to IYF, while five funds sold all their holdings of IYF. However, 23 funds created new positions, and 50 funds increased their exposure to IYF.

Major institutional asset management firms such as Goodman & Company, Managed Account Advisors, M&T Bank Corp, Beacon Capital Management, and Morgan Stanley (MS) added VFH to their portfolio in 2Q15. Among these, two took fresh positions in VFH, while three added to their existing portfolio.

Institutions such as Bank of America (BAC), SG Americas Securities, Fukoku Mutual Life Insurance, and Wells Fargo (WFC) sold their shares of VFH.


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