Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today hones in on some sudden outflows in a number sector ETFs, along with low-volatility funds catching a bid as we head towards fall.
Dip buyers seem to be in the marketplace, as SPY has pulled in over $5.5 billion in recent sessions, which is not an insubstantial amount for the fund, while Small Caps (NYSE:IWM) have also attracted about $2 billion in creation flows.
Additionally, on the redemption side, we have seen some sector outflows in various SPDR products, such as XLY (Consumer Discretionary, -$800 million), XLV (Health Care, -$500 million), and XLI (Industrials, -$300 million) into the month’s end, and interestingly prior to the beginning of September.
In other action, there has been some traffic in “Low Volatility” portfolios lately,with inflows of $200 million into USMV (iShares Edge MSCI Minimum Volatility USA) and larger outflows in Powershares S&P 500 Low Volatility Portfolio (NYSE:SPLV) (-$725 million).
Additionally, VanEck Vectors Semiconductor (NYSE:SMH) has seen some notable outflows recently that we will go into more depth in during our “ETF Chart Of The Day” post.
ETF/Index options activity this morning remains light, considering the overnight volatility on more North Korea tensions, but will likely pick up in the next couple sessions as we head into September and first of the month (this Friday) trading.
The Consumer Discretionary SPDR ETF was trading at $88.43 per share on Tuesday afternoon, down $0.25 (-0.28%). Year-to-date, XLY has gained 9.29%, versus a 10.34% rise in the benchmark S&P 500 index during the same period.
XLY currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #15 of 43 ETFs in the Consumer-Focused ETFs category.