blog

Latest from the Quantamize Blog

Perplexity in Technology: Investors Question How to Best Invest in Tech Stocks with ETF Fund Flows Mixed

Jun 06, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

Tech ETF Fund Flows

Name Ticker 1-Day Fund Flow ($) 1-Week Fund Flow ($) 30-Day Fund Flow ($) 90-Day Fund Flow ($) Assets Under
Management ($ billions)
Net Expense Ratio (%)
Invesco QQQ Trust QQQ $61,210,100 -$1,052,895,100 -$2,595,017,100 -$357,772,300 $67.80 0.20%
Technology Select Sector SPDR Fund XLK -$525,262,018 -$368,566,713 $561,894,579 $344,381,205 $20.24 0.13%
Vanguard Information Technology ETF VGT $0 -$184,669,500 -$178,932,359 -$301,382,431 $19.35 0.10%
iShares US Technology ETF IYW -$18,453,680 -$54,748,850 -$102,505,150 -$201,096,680 $3.82 0.44%
ProShares UltraPro QQQ TQQQ $45,738,000 $4,821,500 -$167,095,500 -$728,361,000 $3.39 0.95%
iShares North American Tech-Software ETF IGV $0 -$146,293,585 -$146,404,105 -$35,994,390 $2.65 0.48%
Fidelity MSCI Information Technology Index ETF FTEC $0 $0 $11,876,272 $115,350,758 $2.30 0.08%
Invesco S&P 500 Equal Weight Technology ETF RYT -$8,028,900 -$32,289,800 $4,129,850 $56,289,300 $1.66 0.40%
ETFMG Prime Cyber Security ETF HACK -$9,510,000 -$9,510,000 -$22,861,000 -$42,554,500 $1.52 0.64%
iShares PHLX Semiconductor ETF SOXX -$9,225,765 -$27,336,235 $283,791,050 $273,238,620 $1.37 0.48%
VanEck Vectors Semiconductor ETF SMH -$178,675,000 $133,559,400 $322,759,850 $183,889,050 $1.17 0.35%
First Trust NASDAQ Technology Dividend Index Fund TDIV $0 $0 -$5,611,186 $4,320,041 $0.92 0.50%
Direxion Daily Semiconductors Bull 3x Shares SOXL $6,026,350 $5,736,500 $162,623,550 -$65,559,650 $0.55 1.02%
Horizons Nasdaq-100 Covered Call ETF QYLD $0 $1,097,000 $30,559,500 $112,441,500 $0.53 0.60%
Invesco NASDAQ Internet ETF PNQI $0 $0 -$13,780,350 -$41,206,400 $0.53 0.60%
SPDR NYSE Technology ETF XNTK $0 $1,644,604 $1,727,821 $10,686,979 $0.41 0.35%

 

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

  • As the escalation of trade tensions between the US and China persists, investors continue to be mixed in sentiment towards US tech stocks. As can be seen in the table above, fund flows into US tech ETFs are extremely mixed on a 1-day, 1-week, 1-month, and 3-month basis.  
     
  • One of the few glimmers of green in the table above can be seen in the Horizons Nasdaq-100 Covered Call ETF (QYLD), a fund that leverages a buy-write strategy to make investment decisions. In a buy-write strategy, investors buy and hold securities while simultaneously selling a call option on that same underlying securities. This strategy is best used when investors intend to hold a security for the long-term, but do not believe the security will appreciate in the near-term. With that being said, it is no surprise to see QYLD receive positive inflows of $30.6 million over the last month -- perhaps investors are long-term bullish on tech, but because of uncertainty in the short-term outlook for tech stocks due to US-China trade tensions, they are leveraging this strategy to generate short-term yield.  

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS