Banking, finance, and taxes

Favorable ETF Trends Showing Inflows (FAS, FAZ, SPY, QQQQ, IJH, VWO, EEM, RSX, EWW, JNK, HYG, TBT)

The end of this last week and weekend reviews showed how the highly volatile Direxion Daily Financial Bear 3X Shares (NYSE: FAZ) and the Direxion Daily Financial Bull 3X Shares (NYSE: FAS) were putting record volume for combined trading for the year 2010.  After looking around at many of the weekend ETF reviews, while FAZ triple-bear grew and the FAS triple-bull saw outflows, it was interesting to see a report from Morningstar’s John Gabriel showing that Q1 was a period of strong inflows in ETF products.  Not all categories, short-term and government bonds for instance, showed gains; but some funds on the larger list of ETF inflows was seen in SPDRs (NYSE: SPY), PowerShares QQQ (NASDAQ: QQQQ), and iShares S&P MidCap 400 (NYSE: IJH).  In emerging markets, Vanguard Emerging Markets Stock ETF (NYSE: VWO) is seeing inflows while the iShares MSCI Emerging Markets Index (NYSE: EEM) is seeing outflows.  Market Vectors Russia ETF (NYSE: RSX) and iShares MSCI Mexico Investable Market Index (NYSE: EWW) saw inflows in emerging market trends.  On bonds, SPDR Barclays Capital High Yield Bond (NYSE: JNK) and iShares iBoxx $ High Yield Corporate Bond (NYSE: HYG), and then the double-short UltraShort 20+ Year Treasury ProShares (NYSE: TBT) were all capital inflow winners.  These are just some of the winners, and the full article shows many of the losers with some obvious and some surprises in the outflows.

Morningstar’s John Gabriel noted, “Investors plowed some $19.7 billion into ETFs in March. Those inflows helped push total net inflows for the ETF industry to $7.7 billion for the first quarter of 2010.”

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1 https://www.fdic.gov/national-rates-and-rate-caps

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