Investors Dump SPY In Droves, As Year-To-Date Flows Turn Negative

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at an exodus out of U.S. large and small cap equities, some hesitancy in financials ahead of big earnings next week, and an uptick in volatility.

As we have mentioned in recent recaps, assets continue to flow out of SPY, and today’s declines likely will not help matters. We have seen over $6.6 billion leave the fund since just before the release of the FOMC minutes last week up until now, and these recent larger redemptions have turned the year-to-date flows in SPY decidedly to the negative (-$2.6 billion YTD).

That’s quite a difference from just a few weeks ago, when SPY had added several billion dollars worth of inflows in the first quarter.

Likewise, we continue to see selling pressure in Small-Caps visible in IWM (Russell 2000, -$1.3 billion out) and Financials via XLF (SPDR Financials, -$700 million). The XLF outflows are interesting, because as we have stated in recent recaps, large banks are expected to report their quarterly earnings beginning at the end of this week and into early next week, including JPM, WFC, C, BAC, and so forth.

Finally, with the VIX on the move today on a global equity sell-off, we have seen some well-timed upside call buying in VXX (April 17 calls). The VIX itself has traded in the high $15s in early trading after having an $11 handle just four trading sessions ago.

The SPDR S&P 500 ETF Trust (NYSE:SPY) was trading at $233.91 per share on Tuesday afternoon, down $1.43 (-0.61%). Year-to-date, SPY has gained 4.64%.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 108 ETFs in the Large 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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