Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at the sudden sector rotation in the markets, with investors flocking to value-oriented areas and selling off high-flying technology.
Heavy sector rotation is evident in the marketplace again today as it was during Friday’s session, as we have seen sellers in Technology, but noticeable buying in Energy and Financials. Those latter sectors, of course, have been relative laggards lately.
We mentioned some “Value” buying last week as well in specifically seeing XLP (Consumer Staples) inflows, with over $1.2 billion in via creation flows. In contrast, we have seen some trimming in XLK (Technology) with about $300 million leaving the fund.
Top holdings there in XLK are some of the names that have been blistered the most in recent sessions, namely, 1) AAPL (15.18%), 2) MSFT (10.42%), 3) FB (6.72%), 4) GOOGL (5.56%), and 5) GOOG (5.41%).
With the VIX rising from below $10 on Friday to above $12 this morning, we have seen August 24 strike call buying in the index, which may be a good indication on where folks are betting volatility wise heading into the end of June and the beginning of the summer.
The Consumer Staples Select Sector SPDR ETF (NYSE:XLP) was trading at $56.58 per share on Monday morning, down $0.09 (-0.16%). Year-to-date, XLP has gained 9.42%, versus a 8.58% 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.