Despite VIX Rising, Volatility ETFs Just Can’t Catch A Break
Analyst Paul Weisbruch of Street One Financial brings us his daily ETF money flows update, which today examines continued trouble for the most popular volatility ETN, as well as robust options activity in the largest financial ETF.
VXX Can’t Catch A Break
Even with the VIX trading near its 50 day MA yesterday after a handle surge back into the $12s after a stay in the $11s, “Long Volatility” ETPs are still having trouble. VXX (iPath S&P 500 VIX Short-Term Futures ETN), for example, traded at yet another new all-time low on Wednesday, and is yet again hitting fresh lows today as well. Year-to-date, VXX has seen modest inflows with about $48 million entering the fund in spite of continuing floundering returns.
The iPath S&P 500 VIX Short Term Futures TM ETN (NYSE:VXX) was trading at $21.16 per share on Thursday afternoon, down $0.15 (-0.70%). Year-to-date, VXX has declined -17.05%, versus a 1.29% rise in the benchmark S&P 500 index during the same period.
VXX currently has an ETF Daily News SMART Grade of F (Strong Sell), and is ranked #5 of 10 ETFs in the Volatility ETFs category.
Healthy Options Action For XLF
In other activity, we continue to see action in very near term January 23 puts in XLF (SPDR Financial) with the ETF trading right around $23 in early trading this morning. Top holdings in XLF are the following: 1) BRK.B (10.75%) 2) JPM (10.41%), 3) WFC (8.64%), 4) BAC (7.75%), and 5) C (5.89%). XLF has seen decent inflows year-to-date (>$468 million in) and has been very impressive since Trump’s election, packing in >$7.3 billion via creation flows.
The Financial Select Sector SPDR Fund (NYSE:XLF) was trading at $23.07 per share on Thursday afternoon, down $0.07 (-0.30%). Year-to-date, XLF has declined -0.77%, versus a 1.29% rise in the benchmark S&P 500 index during the same period.
XLF currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 39 ETFs in the Financial Equities 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.
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.
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