How Big Were XLF’s Outflows Last Week Compared to 2016 Outflows?



Fund flows

In 2016, investors have withdrawn $1.7 billion from the Financial Select Sector SPDR Fund (XLF). Investors pulled out funds worth $447 million from XLF during the week ending March 11. During the week, XLF performed in line with the broad-based SPDR S&P 500 ETF (SPY) and returned 0.9%. In 2016, XLF has fallen 5.6% on fears of a global slowdown, plunging commodity prices, and falling expectations of an interest 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 of XLF. In 4Q15, trade activity by 13F filers led to a 7.4% reduction in aggregate shares held by institutional investors and hedge funds. Among the 611 13F filers holding the ETF, 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), Jefferies, and Passport Capital increased their exposure to XLF in the fourth quarter.

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


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