Investors Pulled $54 Million from Capital Market ETF KCE in 2015



Fund flows

The SPDR S&P Capital Markets ETF (KCE) has lost $53.5 million in assets in 2015 so far. In comparison, the fund witnessed inflows of $74 million in 2014.

The increased possibility of a rate hike in December is bringing investors back to the financial sector. In the past month, the financial sector has outperformed the broad markets and has lost 1.8%. The Financial Select Sector SPDR ETF (XLF) represents the financial sector. In comparison, KCE fell 5.3% in the past month.

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Change in institutional investors’ holdings

In 3Q15, trade activity by 13F filers displayed a 5.6% decline in aggregate shares held by institutional investors and hedge funds. Among the 18 13F filers holding the stock, nine funds reduced their exposure to KCE, while three funds sold all their holdings of the ETF. In contrast, two funds created new positions and six funds increased their exposure to KCE.

Major institutional asset management firms Credit Suisse (CS), Jane Street Group, Citadel Advisors, Spinnaker Trust, and KCG Holdings were top buyers of the ETF during the third quarter.

Institutions Morgan Stanley (MS), CLAL Insurance, Barometer Capital Management, Royal Bank of Canada (RY), and DT Investment Partners significantly reduced their exposure to KCE. Among these, Barometer Capital and DT Investment Partners sold all their shares of KCE during the third quarter.


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