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ETFs AM Wrap-Up: Rotation into Tech, Utilities, and Health Care

Apr 18, 2019

Actionable and Transparent Quantitative ResearchActionable and Transparent Quantitative Research
Actionable and Transparent Quantitative ResearchActionable and Transparent Quantitative Research
 
  • Really fascinating to see that $1 billion flowed into the Invesco QQQ Trust (QQQ) yesterday. Investors were actually increasing their tech exposure while the S&P 500 edged lower and the Nasdaq Composite was directionless.  What does it mean?  Well, we like to look at flows data as another way to judge investor sentiment.  In many ways, it is a leading indicator of future moves.  Buying tech on a down day for the market suggests the rebound in tech can continue.  For the year, the QQQs are already up +21.5%!  The QQQs currently have a “SELL” trading signal with a “Poor” Smart Beta score. 
     
  • Surprising to see the Health Care Select Sector SPDR Fund (XLV) as a top 5 ETF in terms of 1-day fund flow with more than $158 million flowing into the fund. Negative sentiment has surrounded US health care stocks over the last two days as potential Democratic Presidential candidates are placing universal health care policies at the forefront of their campaigns, a topic we dive into more in, “Band-Aid Please! Health Care Stocks Lick Their Wounds and Search for Ointment Amid a Sector Meltdown”. XLV currently has a “Sell” AI Trading Signal.
     
  • Despite the inflows into XLV yesterday, we are looking at a bearish options trade on the ETF. We discuss our trade idea more in , “Options Trades We Like This Morning: XLV Bear Put Spreads”.
     
  • More than $163 million flowed into the Utilities Select Sector SPDR Fund (XLU) on Wednesday. Could yesterday’s positive fund flows signal a trend reversal for the XLU’s fund flows? Over the last week, more than $713 million has flowed out of XLU, and over the last month, nearly $900 million has flowed out of the fund. Positive fund flows can certainly be a bullish indicator for ETFs and the broader sector they track. Yesterday we published, “Duke Energy – This Utility Stock is not a Bore! Find out why in 2 minutes,” where we discuss a utilities trade idea that would benefit from bullish sentiment in the broader utilities sector. XLU currently has a “Sell” AI Trading Signal.

 

Top 5 ETFs by Assets Under Management (AUM)

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Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
SPDR S&P 500 ETF Trust SPY -$1,595,758,461 $2,159,608,797 $8,846,338,479 $4,130,203,998 $278.99 0.09%
iShares Core S&P 500 ETF IVV $0 $552,790,190 $2,999,611,595 $2,953,563,820 $176.35 0.04%
Vanguard Total Stock Market ETF VTI $89,783,127 $258,128,186 $828,660,888 $2,313,916,087 $112.88 0.04%
Vanguard S&P 500 ETF VOO $286,840,245 $1,209,789,608 $1,318,267,922 $6,312,592,775 $111.59 0.04%
Invesco QQQ Trust QQQ $1,115,172,000 $660,855,100 -$114,687,100 $1,423,236,650 $74.58 0.20%
 

Source: ETF Global

Top 5 ETFs by Lowest Net Expense Ratios

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Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
JPMORGAN BETABUILDERS U.S. EQUITY ETF BBUS $0 $0 $5,139,500 $0 $0.03 0.02%
iShares Core S&P Total U.S. Stock Market ETF ITOT $0 $164,805,125 $609,803,830 $1,978,371,470 $19.60 0.03%
SPDR Portfolio Total Stock Market ETF SPTM $0 $5,441,077 $112,794,478 $187,239,162 $3.22 0.03%
SPDR Portfolio Large Cap ETF SPLG $10,232,859 $51,114,980 -$47,506,072 $263,912,034 $2.25 0.03%
Schwab US Broad Market ETF SCHB $6,987,636 -$10,280,491 $95,643,410 $510,745,520 $14.75 0.03%

Source: ETF Global

Top 5 ETFs by 1-Day Fund Flow

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Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
Invesco QQQ Trust QQQ $1,115,172,000 $660,855,100 -$114,687,100 $1,423,236,650 $74.58 0.20%
Industrial Select Sector SPDR Fund XLI $367,251,679 $293,064,478 $314,362,482 -$340,108,093 $11.01 0.13%
Vanguard S&P 500 ETF VOO $286,840,245 $1,209,789,608 $1,318,267,922 $6,312,592,775 $111.59 0.04%
Utilities Select Sector SPDR Fund XLU $163,628,258 -$713,239,175 -$897,041,366 -$517,416,783 $8.67 0.13%
Health Care Select Sector SPDR Fund XLV $158,973,561 -$345,616,513 -$727,337,516 -$883,102,828 $17.42 0.13%

Source: ETF Global

Top 5 ETFs by 1-Week Fund Flow

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Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
SPDR S&P 500 ETF Trust SPY -$1,595,758,461 $2,159,608,797 $8,846,338,479 $4,130,203,998 $278.99 0.09%
Vanguard S&P 500 ETF VOO $286,840,245 $1,209,789,608 $1,318,267,922 $6,312,592,775 $111.59 0.04%
Financial Select Sector SPDR Fund XLF -$99,837,074 $872,963,604 -$38,318,389 -$883,881,928 $25.23 0.13%
iShares Core MSCI EAFE ETF IEFA $0 $857,092,600 $2,375,952,020 $3,917,991,260 $63.39 0.08%
Invesco QQQ Trust QQQ $1,115,172,000 $660,855,100 -$114,687,100 $1,423,236,650 $74.58 0.20%

Source: ETF Global

Top 5 ETFs by 1-Month Fund Flow

On Mobile/Tablet scroll to the right

Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
SPDR S&P 500 ETF Trust SPY -$1,595,758,461 $2,159,608,797 $8,846,338,479 $4,130,203,998 $278.99 0.09%
iShares Core S&P 500 ETF IVV $0 $552,790,190 $2,999,611,595 $2,953,563,820 $176.35 0.04%
iShares Core MSCI EAFE ETF IEFA $0 $857,092,600 $2,375,952,020 $3,917,991,260 $63.39 0.08%
iShares iBoxx $ High Yield Corporate Bond ETF HYG -$86,708,400 $198,608,020 $1,736,008,940 $1,897,054,650 $17.29 0.49%
iShares U.S. Treasury Bond ETF GOVT $39,889,120 $290,274,850 $1,528,849,830 $2,434,942,910 $9.74 0.15%

Source: ETF Global

Top 5 ETFs by 3-Month Fund Flow

On Mobile/Tablet scroll to the right

Name Ticker 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net
Expense Ratio (%)
Vanguard S&P 500 ETF VOO $286,840,245 $1,209,789,608 $1,318,267,922 $6,312,592,775 $111.59 0.04%
SPDR S&P 500 ETF Trust SPY -$1,595,758,461 $2,159,608,797 $8,846,338,479 $4,130,203,998 $278.99 0.09%
Graniteshares Gold Trust BAR $0 $0 $7,136,100 $4,116,422,570 $0.46 0.17%
iShares Core MSCI EAFE ETF IEFA $0 $857,092,600 $2,375,952,020 $3,917,991,260 $63.39 0.08%
iShares Core MSCI Emerging Markets ETF IEMG $0 $0 $94,117,680 $3,660,824,280 $61.41 0.14%

Source: ETF Global

 

 

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