Overall: More gigantic Equity inflows of +$16.7B (previous week +$7.5B). That is now +$54B inflows over the last month. This is the most inflows I have ever seen in 1 month… Is this extreme? Yes, but keep in mind 2016 had less equity ETF inflows over the first 3 quarters of the year vs past years.
In US sectors, it was more of the same – Financials +$1.0B, Industrials +$618M, and Materials +$557M are still posting huge inflows (see below table for details on individual names). Those 3 sectors have seen huge inflows for now 3+ weeks in a row. Particularly interesting is different ETFs gaining assets inside these sectors. For example, PFI (PowerShares DWA Financial Momentum Portfolio), MXI (iShares Global Materials ETF), and EUFN (iShares MSCI Europe Financials ETF) are seeing rare inflows. Many of these ETFs have smaller cap names that are now seeing investment.
What changed last week in US Sectors? Consumer Discretionary, Tech, and Consumer Staples also saw good sized inflows. Note 2 weeks ago there was a large rotation out of Staples and into Industrials, so Staples seeing inflows is a noticeable change from the last few weeks. This group also saw call buying last week in individual names: CAG, CPB, K, SYY and PM. Semis, a group that saw big outflows 2 weeks ago, gained almost all of the assets lost, posting +$250M inflows last week.
On the outflow side, Health Care led outflows -$537M last week, followed by Energy -$324M, and Utilities, -$308M. Note Energy saw massive inflows 2 weeks ago, and the XOP ETF was only ETF that saw the outflows, all other ETFs in the Energy sector saw small inflows.
International ETFs were much more interesting last week. Developed International markets saw inflows along with Emerging Markets. Japan saw its 4th straight week of inflows, +$202M last week. Also notable, Mexico, Russia, Europe, and Canada all saw inflows. Keep in mind International countries / regions have been very quiet for most of 2016, so the fact that they are starting to see inflows is very interesting.
High Yield Bonds ETFs posted huge inflows of +$2.8B inflows last week with HYG and JNK capturing $1.9B of that number. Gold ETFs once again saw outflows. GLD (Gold) saw another $464M outflows (-560M prior week) and IAU (Gold) -$46M outflow.
- International ETFs +$2.5B - Country/ Region specific ETFs: Largest Inflows: - Developed Markets +$1.0B - Emerging Markets +$475M - Mexico +$215M - Japan +$202M - Russia +$200M - Canada +$132M - Europe +$198M Largest Outflows: - NONE
LEARN MORE ABOUT CHRISTIAN'S NEWSLETTERS, TRADING ROOM AND WEBINARS AT TRIBECA TRADE GROUP