Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at major inflows into small cap ETFs, and big interest in gold that may wane quickly amid a renewed dollar rally.
Small Cap stocks continue to attract money flows on new all-time highs in the Russell 2000, as IWM (iShares Russell 2000) has pulled in north of $2.5 billion in recent sessions. This small cap fund is not alone, of course, as we have mentioned IJR (iShares Core S&P Small Cap) actually outpacing it year-to-date in terms of inflows.
The most interesting paradigm here is that while Small-Caps continue to surge, we saw a big selloff in Large Cap “FANG” stocks yesterday, which has evened out a bit today, and one wouldn’t normally see such negative correlation like this.
Elsewhere, we have seen strong demand for gold this month via more than $1.7 billion entering GLD (SPDR Gold), but the question is will this hold with the U.S. Dollar (see UUP (PowerShares DB U.S. Dollar Index Bullish) rallying the past couple sessions, and trading at its highest level since late August.
The iShares Russell 2000 Index ETF (IWM) was trading at $144.92 per share on Tuesday afternoon, up $0.77 (+0.53%). Year-to-date, IWM has gained 8.24%, versus a 12.54% rise in the benchmark S&P 500 index during the same period.
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.