Outflows Start To Hit The iShares NASDAQ Biotech ETF (IBB)

Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today examines a relatively muted ETF landscape that’s seen smallish outflows in biotech and some renewed interest in volatility products ahead of earnings season.

Outflows have been extremely light in the marketplace even though we are almost through the historically troublesome month of October. For instance, in recent sessions the net leader in outflows across all ETFs is IBB (iShares NASDAQ Biotechnology) as it has seen about $235 million leave the fund via redemptions and this is a barely notable, small sum in the context of typical inflows and outflows in ETFs that we cover.

With earnings season expected to rule the tape for the next week or more, we have noted that the VIX has sharply and suddenly reversed since Friday’s brief dip below $9.50 (it is near $11 this morning). During the month of October VXX has pulled in nearly $200 million while levered UVXY has attracted just shy of $100 million in new assets.

The iShares NASDAQ Biotechnology Index ETF (IBB) was trading at $326.17 per share on Tuesday morning, down $1.57 (-0.48%). Year-to-date, IBB has gained 23.10%, versus a 15.83% rise in the benchmark S&P 500 index during the same period.

IBB currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #2 of 33 ETFs in the Health & Biotech 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.