Fund flows data in recent sessions implies that more than $14 billion has entered the SPDR S&P 500 ETF Trust (NYSE:SPY), which is just a jaw dropping amount.
Typically if we see a $5 billion inflow or outflow into any ETF, SPY included, we sound the alarms because of the size of the trade(s). But then again, since this U.S. Presidential election cycle from beginning to end has been nothing but normal nor expected, why should these fund flows surprise us?
In other flows, XLF (SPDR Financial) has reversed the year-to-date outflows that we have mentioned in this column several times, and has pulled in over $3.8 billion in new assets, likely amid the heavy upside call buying in the product and huge outperformance since Trump’s victory.
Meanwhile, IWM (Russell 2000) has also starred with more than $3.8 billion entering that fund via creation activity, and it is safe to say that fund flows are extremely active here before Thanksgiving as portfolio managers have not been shy about making large notional dollar trades in asset allocation tilts. XLV (Health Care) and IBB (Biotechnology) have caught bids lately as well, which is something that we alluded to last week via some of the early action there that we noted.
Elsewhere, we spoke about a lift in Natural Gas prices yesterday and that momentum has carried into today (UNG, UGAZ) and Crude Oil (USO) is also strong, rallying in the neighborhood of 3-4% this morning.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.