Big Money Is Leaving SPY And Piling Into IWM

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows report, which today focuses on outflows from large caps and into small caps, along with outflows from a couple of popular gold miner funds.

Someone has been pulling the plug in SPY into the two-day rally in global equities, as we have seen a substantial $5 billion leave the fund via redemptions, and notably before first of the month model changes hit the market next Monday. On the flipside, breakout highs in Small-Caps have pulled some new assets into IWM (iShares Russell 2000) this week, with over $1 billion entering that fund.

Recently we have mentioned some inflows into GLD (SPDR Gold), and this seems to have corresponded with outflows in the two largest “Gold Miner” ETFs GDX (VanEck Vectors Gold Miners) and GDXJ (VanEck Vectors Junior Gold Miners). While these are not notionally huge numbers for either fund, the ETFs have seen about $350 million and $200 million flow out respectively due to redemption pressure in the past couple sessions — in tandem with inflows in GLD itself.

The iShares Russell 2000 Index ETF (NYSE:IWM) was trading at $141.60 per share on Wednesday afternoon, up $1.33 (+0.95%). Year-to-date, IWM has gained 5.01%, versus a 6.98% rise in the benchmark S&P 500 index during the same period.

IWM currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 29 ETFs in the Small Cap Blend ETFs category.

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.

About the Author: Paul Weisbruch

paul-weisbruchPaul 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 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.

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