We have seen gigantic inflows once again ahead of tomorrow’s anticipated FOMC rate decision, with an astounding over $6.3 billion entering SPY in the past couple sessions via creation pressure. This gives the largest S&P 500-linked fund a fresh $16.1 billion in year-to-date.
Meanwhile, competing S&P 500 tracking funds like IVV (iShares Core S&P 500) has reeled in more than $11.8 billion in its own right year-to-date, and VOO (Vanguard S&P 500) has pulled in over $11.4 billion during this time frame.
In total, that’s over $39 billion entering these funds this year alone.
Given that this sizable activity continues, even with broad market equity indices trading at new highs in what seems day after day lately, there is no reason for us to believe that this activity may lay-off if stock prices continue to rally into the end of December. Picture a Santa Claus rally on top of this pre-FOMC decision rally — even if we are due for the usual holiday trading doldrums.
SPY shares rose $1.62 (+0.71%) to $227.87 in Tuesday afternoon trading. Year-to-date, SPY has now gained 11.77%.
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.
Paul 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 ETFTrends.com 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.