New Month Brings Fresh Outflows In Small Cap Funds Once Again
Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today picks up on renewed selling of small cap funds, along with some apparent sector rotation into energy and away from a few other sectors.
Beginning of the month tactical model changes seemed to be selling Small Cap stocks on the whole, as we have seen about $1.3 billion leave IWM (iShares Russell 2000) in recent sessions, coupled with smaller (but notable) outflows in the triple levered bull TNA (Direxion Daily Small Cap Bull 3X, -$175 million out).
Similarly, IJR (iShares Core S&P SmallCap) traded very heavy volume on Monday this week, although we have not seen the redemptions in the marketplace just yet but they will likely follow.
In other trading, there seems to have been some model tilting toward Energy (XLE) and away from Utilities (XLU), Health Care (XLV), Consumer Discretionary (XLY) and Biotech (XBI), as evidenced from early week fund flow data.
The iShares Russell 2000 Index ETF (NYSE:IWM) was trading at $136.13 per share on Wednesday afternoon, up $0.26 (+0.19%). Year-to-date, IWM has gained 0.95%, versus a 5.95% 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 28 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.
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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