Exodus From Small Cap Funds Accelerates Into End Of Week

Analyst Paul Weisbruch of Street One Financial wraps up the holiday shortened trading with his daily fund flows update, today pointing out conflicting fund flows in popular large cap equity funds, an exodus from small caps, and rising interest in foreign stock ETFs.

We have spoken about outflows for the past week in SPY, but competing ETF IVV (iShares Core S&P 500) has seen decent inflows in the past several sessions totaling more than $1 billion.

Elsewhere, we mentioned EZU (iShares MSCI Eurozone) in a piece about Germany Equity ETFs in our ETF Chart Of The Day segment recently, and this fund itself has seen decent inflows this week as well (over $250 million in).

Small Caps continue to see outflows this week, at least in the case of the largest ETF in that segment, IWM (iShares Russell 2000, -$2 billion in redemptions).

Elsewhere, we continue to see bids in the Developed Markets space across a variety of products as we have mentioned here in the recent past, IEFA (iShares Core MSCI EAFE), VEA (Vanguard FTSE Developed Markets), and EFA (iShares MSCI EAFE).

In VXX (iPath S&P 500 VIX Short-Term Futures ETN), we have seen steady activity in the April 17 calls, which expire next Friday, on very heavy trading volume in the product for the past seven sessions or so (and a spike in the VIX itself).

The iShares Russell 2000 Index ETF (NYSE:IWM) was trading at $134.25 per share on Thursday afternoon, down $0.79 (-0.59%). Year-to-date, IWM has declined -0.44%, versus a 4.65% 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 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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