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Bank Loan ETF Sees Big Inflows This Week
Analyst Paul Weisbruch of Street One Financial in his daily fund flows update points out some increasing interest in a major bank loan ETF, as well as some interesting options activity in the most well-known bond fund.
There has been some pre-Christmas buying in BKLN (PowerShares Senior Loan Portfolio), with the fund packing in an additional over $415 million this week thanks to creation flows, bringing its YTD total to north of $3.5 billion in.
In other action, we have seen inflows that are likely related in two “EAFE” oriented funds, both VEA (Vanguard FTSE Developed Markets) and EFA (iShares MSCI EAFE) with these two ETFs piling in >$650 million and >$525 million respectively via inflows this week. In what may be related portfolio readjustments, EFAV (iShares MSCI EAFE Minimum Volatility) has seen about $225 million leave the fund during this same time frame. If you recall, minimum volatility funds saw huge interest in the first half of 2016, but their popularity has waned considerably in the second half of the year.
Elsewhere, earlier this week we saw buyers of cheap upside in TLT (iShares 20+ Year Treasury Bond) call options, specifically the February 126 calls (>115,000 contracts traded versus open interest of 6,200 contracts) with TLT trading with a $118 handle presently (about 6.7% OTM).
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.
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