Investors Seem To Be Dumping The SPY And Buying QQQ Instead

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today points out money continuing to leave the world’s largest ETF, continued interest in tech and emerging markets, and finally a well-timed bet on the financial sector declining.

Out With The SPY, In With The QQQ

SPY outflows have been building in the past several sessions, with more than $3.3 billion leaving the fund via redemptions. As we’ve noted recently, the S&P 500 (SPX) continues to struggle at and near the 2276 level, failing to break through its recent highs.

On the flipside, we have seen some buyers around in QQQ (Nasdaq 100), with about $1.5 billion entering that fund on strong leadership lately from the Technology sector.

EM Momentum Chasing Continues

Also on the inflows side after a week of notable outperformance are the Emerging Markets, with IEMG (iShares Core MSCI Emerging Markets) and VWO (Vanguard FTSE Emerging Markets) reeling in $1 billion and over $375 million respectively in recent sessions.

Bearish Financial Bet Pays Off

Finally, we saw some well-timed put buying in XLF (SPDR Financial) late in the week last week, with January 23.50 puts trading. These options are now in-the-money with the sector pulling back this morning

These options also expire this Friday, and the sector will be worth watching closely to see if it can break out of its current range.


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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