Small Cap Funds Lead The Charge Higher Following Trump’s Bullish Speech

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today points out some huge inflows into equity funds, following President Trump’s big speech last night.

SPY saw over $1.5 billion in new asset flows, as did QQQ (over $1.1 billion), ahead of the first trading day of March, and of course, ahead of Trump’s speech last night.

Right on cue, Trump’s pro-business commentary — which was long on promises but short of details — has vaulted markets to new highs this morning. Competing ETF of SPY, VOO (Vanguard S&P 500), has also reeled in more than $460 million lately. SPY, in fact saw heavy activity in the upside May 260 calls yesterday, prior to today’s move higher (perhaps a short enacting a disaster hedge in case of more equity upside into May).

Small Caps are notably up substantially today, with IWM (Russell 2000) for instance trading up as much as 1.9% in early trading today. IWM itself has had strong inflows ahead of yesterday’s move, pulling in more than $1 billion in new funds.

On the flipside, there was some selling ahead of March 1 in the Industrials space, with XLI (SPDR Industrials) losing more than $550 million to redemptions. XLI and IYJ (iShares Industrials) are likely to be quite active today amid first-of-the-month ETF tactical model changes by big players.

The iShares Russell 2000 Index ETF (NYSE:IWM) was trading at $140.37 per share on Wednesday morning, up $2.53 (+1.84%). Year-to-date, IWM has gained 4.09%, versus a 7.15% 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.

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 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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