Recent Small Cap Popularity Continues As We Head Into September (IWM)

money flow

Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at unabated inflows into both large cap and small cap equities on the final day of August.

The dip-buying momentum has not abated in the past couple sessions, accompanied and perhaps even preceded by larger inflows as we mentioned in two of the largest Equity Index ETFs, SPY and IWM (Russell 2000).

Each fund has taken in over $6 billion and over $2.2 billion respectively during this last minute surge higher in August, and now the SPX is comfortably above its 50 day MA for the first time since the middle of the month.

ETF/Index options trading has been uneventful today thus far, as we are only witnessing what appears to be portfolio managers re-adjusting their hedges thanks to the latest run higher in equities. For example, in IWM we have seen some September put selling of lower, well out of the money strikes in order to purchase higher strike puts, perhaps signaling that managers are enjoying this little rally in equities but do not want to become too comfortable, given the recent global tensions and headline risks that have smacked markets at times.

This situation certainly bears monitoring as we head into September.

The iShares Russell 2000 Index ETF (NYSE:IWM) was trading at $139.73 per share on Thursday afternoon, up $1.36 (+0.98%). Year-to-date, IWM has gained 4.37%, versus a 11.54% rise in the benchmark S&P 500 index during the same period.

IWM currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #6 of 36 ETFs in the Small Cap Blend 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 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.