News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Coming up at half past: my weekly webinar looking at the charts, the sentiment indicators on the calendar this week and the IG client positioning data. Do join me if you can https://t.co/k8xpSlEM0n
  • Join @MartinSEssex at 5:30 EST/9:30 GMT for a webinar on trading sentiment. Register here: https://t.co/CX9djlHnWK https://t.co/DHjcgvlboC
  • 🇪🇸 Balance of Trade (AUG) Actual: €-3.9B Previous: €-1.60B https://www.dailyfx.com/economic-calendar#2021-10-19
  • 🇵🇱 Employment Growth YoY (SEP) Actual: 0.6% Expected: 0.6% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2021-10-19
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.40%, while traders in USD/JPY are at opposite extremes with 76.25%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/U1taXgNx2T
  • Heads Up:🇪🇸 Balance of Trade (AUG) due at 08:00 GMT (15min) Previous: €-1.60B https://www.dailyfx.com/economic-calendar#2021-10-19
  • Heads Up:🇵🇱 Employment Growth YoY (SEP) due at 08:00 GMT (15min) Expected: 0.6% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2021-10-19
  • 🇮🇩 Interest Rate Decision Actual: 3.5% Expected: 3.5% Previous: 3.5% https://www.dailyfx.com/economic-calendar#2021-10-19
  • Get your basics right. Find out what is stock market volatility and how you can trade It here:https://t.co/pK95WaqA3j https://t.co/0nrgHNl224
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Silver: 2.14% Gold: 0.81% Oil - US Crude: 0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/llK2Hpegt8
Stock Market Fund Flows: S&P 500 Retreat Sparks Demand for Defensives

Stock Market Fund Flows: S&P 500 Retreat Sparks Demand for Defensives

Peter Hanks, Strategist

Stock Market Fund Flows Talking Points:

  • Broad-market ETFs SPY, IVV and VOO notched $4.5 billion in outflows for the week
  • The XLV healthcare ETF recorded a near-record intraday inflow as the S&P 500 began its retreat
  • See Q1’19 forecasts for the Dow, Dollar, Bitcoin and more with the DailyFX Trading Guides.

Stock Market Fund Flows: S&P 500 Retreat Sparks Demand for Defensives

Amid a tumultuous week for the S&P 500 and other US equity markets, fund flows reveal that investors reduced exposure to the broad-market tracking ETFs of SPY, IVV and VOO. Together, the three funds notched $4.5 billion in outflows which marks the first week of net outflows in a month. The week also stands as the fifth week of net outflows for the year to date, despite a simultaneous 8.65% gain for the S&P 500.

Aggregate Fund Flows for Broad Market ETFs versus S&P 500 (Chart 1)

SPY ETF price chart

High-Yield Corporate Debt Sees Capital Flight

A sector-specific look into fund flows showed investors were eager to ditch their exposure to high-yield corporate debt, a recent high-flyer in the ETF space. This week however, the HYG ETF saw $108 million exit the fund. While somewhat minor, the week of net outflows marks the second such week after the fund saw its largest intraday outflow in over two months last Wednesday. Prior to the late-February outflows, the fund enjoyed a month of consecutive inflows.

HYG ETF Fund Flows (Chart 2)

HYG etf price chart

Learn tips and tricks to day trading the S&P 500

Defensive Sectors Gain Traction

While broad-market and high-growth ETFs saw capital shift elsewhere, the defensive healthcare sector posted considerable inflows. Specifically, the XLV ETF realized its second largest intraday inflow ever on Thursday. The flow was dwarfed only by December 12th when the fund saw $786 million enter its coffers just days before the worst of December’s equity rout.

XLV ETF Fund Flows (Chart 3)

XLV etf price chart

The considerable demand for healthcare exposure is indicative of a risk-off mood in the ETF sector, echoed by investors’ decision to shed exposure to the riskier HYG. While prior extreme fund flows have not always preceded a deeper decline, the concerted flight to XLV this week suggests some investors believe the S&P 500 has more ground to give.

Read more: Will the Stock Market Crash in 2019?

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES