Small Cap, Smart Beta, And Corporate Bonds ETFs Draw Big Inflows

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today points out rising demand for smart beta, corporate bonds, and small cap ETFs.

Smart Beta Draws Big Money

Several weeks back we highlighted SPHD (PowerShares S&P 500 High Dividend Low Volatility) in our ETF Chart Of The Day piece, and this fund has recently pulled in a fresh $680 million via creation flows lately.

Corporate Bonds Clearly In Vogue

In other action, High Yield Corporate Bonds have also seen some buyers which may be linked to tactical ETF model portfolio tilts, where both HYG (iShares HY Corporate Bond) and JNK (SPDR High Yield Bond) have both seen inflows (over $575 million and over $475 million in apiece respectively). Interestingly, options flow in HYG has consisted of March 86 put buying in decent size lately, which contrasts with the inflows in the underlying.

LQD (iShares Investment Grade Corporate Bond) has also seen considerable inflows lately, with about $1 billion appearing there, so it isn’t just junk bonds attracting attention, but corporate bonds in general.

IWM Starts Raking It In Again

In other activity, not only has SPY been the recipient of larger inflows lately but we also see bids in Small-Cap stocks via sizable IWM creations. This fund has seen over $1.2 billion flowing in in recent sessions, with investors perhaps identifying small caps as a big potential beneficiary of the “risk on” Trump trade.

The iShares Russell 2000 Index ETF (NYSE:IWM) was trading at $135.13 per share on Thursday morning, down $0.02 (-0.01%). Year-to-date, IWM has gained 0.21%, versus a 1.82% 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 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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