PowerShares QQQ Sees Sizable Outflows As Investors “Sell In May”

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May 19, 2017 11:44am NASDAQ:QQQ

Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at end-of-week bulls pushing equities higher at home and abroad, a quick collapse in volatility, and some outflows in major U.S. equity funds.

The dip buying of yesterday continues into today’s session, in not only U.S. equities but even the most recently battered segments of the market such as Brazil (EWZ) and Emerging Markets (EEM, VWO).

Long Volatility products such as VXX, UVXY, and TVIX are sinking as quickly as they rallied during the past two sessions, and we see a VIX which peaked above $16 briefly yesterday back in the low 12’s. Note that the volatility gauge had a $10 handle just four trading sessions ago. When folks speak about the “Vol of Vol,” this week is an example of what they are referring to.

We have also seen some examples of “Selling In May and Going Away” though, including more than $2.2 billion flowing out of SPY this week, about $1.3 billion leaving IWM (Russell 2000) and additionally about $800 million being redeemed from QQQ. Today’s options expiration may exacerbate volatility and volume, especially into the close.

The PowerShares QQQ ETF (NASDAQ:QQQ) was trading at $138.21 per share on Friday morning, up $0.95 (+0.69%). Year-to-date, QQQ has gained 16.65%, versus a 6.65% rise in the benchmark S&P 500 index during the same period.

QQQ currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 33 ETFs in the Large Cap Growth ETFs category.

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.

About the Author: Paul Weisbruch

paul-weisbruchPaul 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.

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