What Are XLF’s Year-to-Date Outflows?



Fund flows

In 2016 so far, ETF investors have withdrawn $2 billion from the Financial Select Sector SPDR ETF (XLF). However, XLF saw an inflow of $354 million during the week ending February 19. In the week ending February 12, XLF underperformed the broad market SPDR S&P 500 ETF (SPY) and returned -2.2%. However, in the last five trading days as of February 19, XLF has gained 4.2%. In 2016 so far, XLF has plunged 12% on fears of a global slowdown, plunging commodity prices, and falling expectations of a rate hike. All these factors have led to increasing doubts about the health of the US economy.

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Institutional investor holdings

13F filings of major institutional asset managers for the fourth quarter of 2015 give a mixed picture for the Financial Select Sector SPDR ETF (XLF).

In 4Q15, trade activity by 13F filers saw a 7.4% reduction in aggregate shares held by institutional investors and hedge funds. Among the 611 13F filers holding the stock, 177 funds reduced their exposure to XLF while 56 funds sold all their holdings of XLF. However, 93 funds created new positions and 254 funds increased their exposure to XLF.

Major institutional holders like Bank of America (BAC), Franklin Resources (BEN), and Jefferies and Passport Capital have increased their exposure to XLF in the fourth quarter. Among these, the Bank of America has added a new XLF holding to its portfolio.

Institutions that have significantly reduced their exposure are BNP Paribas, Goldman Sachs (GS), and Nomura (N). Nomura sold all of its shares in XLF.


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