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How Much Have Investors Withdrawn from KRE in 2016?

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Fund flows

In 2016 so far, ETF investors have withdrawn $491.6 million from the SPDR S&P Regional Banks ETF (KRE). In contrast, investors plowed $477 million into KRE in 2015. During February 2016, KRE saw a fall of $233 million in terms of assets.

Last week, KRE recorded outflows of $14 million, and shares of KRE rose 2.1%. Year-to-date, shares of KRE have plunged 16%, dragged down by low oil prices and a slowing economy.

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Changes in institutional investors’ holdings

In 4Q15, trade activity by 13F filers displayed a 10.6% fall in aggregate shares of KRE held by institutional investors and hedge funds. Among the 245 13F filers holding the stock, 61 funds reduced their exposures to KRE, and 28 funds sold all their holdings of the ETF. In contrast, 56 funds created new positions, and 92 funds increased their exposures to the ETF.

Institutional asset management companies such as UBS, Bank of America (BAC), Hap Trading, LPL Financial, and Blackstone Group were the top five buyers of KRE during the fourth quarter. Meanwhile, the institutions that significantly reduced their holdings of KRE during the quarter were Goldman Sachs (GS), JPMorgan Chase (JPM), Citigroup (C), Schroder Investment Management, and Wellington Management.

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