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Investors Pile Back Into Equity ETFs

Published 12/08/2017, 01:31 PM
US500
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DIA
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IVV
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SPY
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IWM
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KRE
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XLF
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BTC/USD
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Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at major inflows nearly everywhere you turn in the equity space, including large caps, small caps, and financials.

There has been more talk about bitcoin, lately, given the meteoric rise in the crypto-currency in the very short-term, and the impending launch of bitcoin futures on exchanges on Sunday. This fervor has overshadowed the equities markets.

Dip Buying

Of course, the launch of the futures will be followed with, “When will long/short bitcoin ETFs start trading?” and we will monitor that closely from here and report accordingly. Speaking of equities, “Buy The Dip” is around again, at least in terms of the major Equity Index ETFs, with SPY seeing more than $5 billion enter the fund via creations and small caps reeling in more than $2 billion via IWM inflows.

Similarly in S&P 500 equities, IVV has also participated in attracting more than $1 billion, while even DIA has pulled in an impressive $1.7 billion lately.

Financials have seen substantial inflows since the beginning of the month as well, evident in the huge gap up that has occurred on heavy volume in XLF (financials) and related ETFs in the sector in December. On this move higher, XLF has seen creation activity topping over $1.1 billion, while related ETFs such as KRE (regional banking) have also participated.

IWM was trading at $151.65 per share on Friday morning, up $0.38 (+0.25%). Year-to-date, IWM has gained 13.27%, versus a 19.73% rise in the benchmark S&P 500 index during the same period.

IWM currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 40 ETFs in the Small Cap Blend ETFs category.

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