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EAFE Funds See Big Continued Inflows As We Approach 2017
Analyst Paul Weisbruch of Street One Financial brings investors his daily fund flows update, which today points out continued interest in some non-U.S. funds and an apparent end-of-year sector rotation happening in domestic funds.
We have seen some buyers in Europe, Australasia and Far East (EAFE) related ETFs in the past couple sessions, namely EFA (iShares MSCI EAFE) and VEA (Vanguard FTSE Developed Markets), and that trend has continued this week. Also, a Europe linked ETF from WisdomTree, HEDJ (WT Europe Hedged Equity), has seen similar creation demand recently heading into year’s end.
The iShares MSCI EAFE Index Fund (ETF) (NYSE:EFA) was trading at $57.51 per share on Thursday afternoon, up $0.12 (+0.21%). Year-to-date, EFA has declined -0.05%, versus an +11.08% rise in the benchmark S&P 500 index during the same period.
EFA currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #8 of 49 ETFs in the Foreign Large Cap Blend ETFs category.
Sector Rotation Forming?
There has been some moderate sector rotation in U.S. equities as well with buyers of Energy (XLE) Financials (XLF), and Technology (XLK), and sellers of Consumer Discretionary (XLY) and Utilities (XLU).
ETF/Index options trading has been especially muted this week heading into the last trading day of the calendar year tomorrow, as it feels like market participants are content with current levels from a hedging standpoint — even though the VIX has been creeping up above $13 today (note that the venerable “fear index” traded as low as $10.93 just six trading sessions ago).
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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