Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at
Yesterday’s trading, as we reported in our morning piece, was marked with a much lower U.S. dollar and surging precious-metals prices prior to the FOMC rate decision, only to see these movers reverse themselves into the close after the rate decision itself.
Gold and silver, for example, have more than given up all of yesterday’s gains and are once again trading at their lowest levels since late May. Meanwhile, the dollar, which traded at a new 52- week low yesterday, is spiking today (see UUP).
We have spoken also about larger equity inflows into major index ETFs prior to yesterday’s rate decision as well involving not only Large Caps (SPY), IVV), but also small caps, with IWM taking in over $2 billion.
On the options front, trading has been fairly quiet, although we have seen some nibbling on well out-of-the-money puts in SPY, as some portfolio managers may be enacting hedges going into what could prove to be an unpredictable summer.
Finally, we are watching two newer funds to the marketplace that debuted in late May from issuer GraniteShares known as COMB (Bloomberg Commodity Broad Strategy No K-1 ETF) and COMG (S&P GSCI Commodity Broad Strategy No K-1 ETF). We spoke about ways to access diversified exposure to Precious Metals yesterday, for instance, and these ETFs invest in futures such as Gold, Copper, Natural Gas, Corn, Crude Oil, Silver and so on. According to fund literature, COMB is the lowest cost broad commodity ETF in the U.S., in fact.
The IWM was trading at $140.06 per share on Thursday morning, down $1.2 (-0.85%). Year-to-date, IWM has gained 3.86%, versus a 8.81% 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 33 ETFs in the Small Cap Blend ETFs category.