Analyst Paul Weisbruch brings investors his daily fund flows update, which today points out a lack of interest in a high-flying financial ETF, despite the fund leading the markets higher.
First, let’s recap some fund flows in the larger indexes. SPY saw $5.5 billion in inflows in the past twenty-four hours, which is a substantial amount flowing in after the Presidential election. IWM (Russell 2000) has also seen buyers with $1.2 billion being created there recently.
In other action, we’ve previously spoken about well-timed buyers of January 20 strike calls in XLF (SPDR Financials), and the Financial sector has been one of the best performers since the Presidential election results came in in favor of Trump. Since then, the XLF traded as high as $21.70 yesterday on an intraday basis on extremely heavy trading volume.
XLF is trading at multi-year highs this week, but it has had a very hard time year-to-date in terms of asset flows, with $3.3 billion out. We will see if this trend reverses at all into year’s end, given the immense outperformance here. January 22 calls in XLF have traded in good size (over 123k contracts) on what looks like speculation on additional upside there.
The Financial Select Sector SPDR Fund (NYSE:XLF) is actually pulling back today, down $0.13 (-0.60%) to $21.48 in Friday morning trading, putting it roughly in line with the daily performance of the SPY so far.
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.
Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
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.