Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today picks up on relentless buying in the world’s largest ETF, significant outflows in a popular fixed income fund, and some potential arbitrage moves in financials.
SPY inflows just kept building all of last week, totaling over $12.5 billion in recent sessions, which is a huge number — even for SPY standards.
Equity markets are off today, however, once again as SPX made a run at 2400 four trading sessions ago, only to regress back to current levels. Clearly, someone is trying to “Buy The Dip,” an effect that we have seen too often over the past several years.
Elsewhere, outflows have been very light in the ETF marketplace, where the net leader in recent sessions is not an Equity product but a Fixed Income fund, TLT (iShares 20+ Year Treasury Bond), which has seen modest outflows to the tune of about $400 million. This could well be related to the Federal Reserve’s promise to hike interest rates multiple times in 2017, beginning as soon as this month.
Finally, we saw some late week call selling in XLF (SPDR Financial) involving April 25 calls, which seems to have a similar sentiment to some spring put buying we have witnessed in the same fund. This indicates potentially limited upside/potential downside in the sector in the next month or two.
The iShares Barclays 20+ Year Treasury Bond ETF (NASDAQ:TLT) was trading at $118.59 per share on Monday afternoon, down $0.76 (-0.64%). Year-to-date, TLT has declined -0.45%, versus a 6.14% rise in the benchmark S&P 500 index during the same period.
Paul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.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.