Small Caps (IWM) Attracting Funds Amid Large Cap Outflows

Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today points out inflows into both tech and small cap funds, as investors seem to be getting out of large caps.

Yesterday, at least after the FOMC announcement, was actually quite a volatile session as compared to what we have been used to recently with the SPX breaching 2500 briefly before a strong recovery to end the day.

While SPY has been experiencing larger net outflows lately going into October as we mentioned in yesterday’s piece, we have seen some assets gravitate to Small Caps via IWM (iShares Russell 2000) as well as QQQ with the funds taking in about $2 billion apiece lately via creations.

Elsewhere, we are hard pressed to point out any pivotal directional trading that has occurred in ETF or Index options or in ETFs themselves in the past 48 hours or so, as the markets continue to be quiet amid the last official days of summer.

The iShares Russell 2000 Index ETF (NYSE:IWM) was trading at $144.05 per share on Thursday afternoon, up $0.21 (+0.15%). Year-to-date, IWM has gained 7.59%, versus a 12.73% rise in the benchmark S&P 500 index during the same period.

IWM currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 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 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.