SPDR S&P 500 ETF (SPY) Outflows Accelerate Into Fed Decision

money flow

Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today focuses on increasing outflows in the world’s largest ETF, and big inflows for several major Treasury-focused funds.

New all-time highs in equities has been met with growing outflows as portfolio managers seem to be prepping for October early in trimming positions. In SPY we have seen over $8 billion leave the fund month-to-date, with much of the redeeming occurring in the last couple sessions ahead of today’s FOMC rate decision.

On the other hand, Fixed Income ETFs from iShares have been prosperous in September in terms of reeling in new assets ahead of the FOMC rate decision. TLT (iShares 20+ Year Treasury Bond) has pulled in over $2.6 billion in new assets, while IEI (iShares 3-7 Year Treasury Bond) has attracted more than $770 million, and IEF (iShares 7-10 Year Treasury Bond) has piled in about $300 million.

Notably, these funds encompass all durations of Treasuries heading into an FOMC rate decision where market participants are looking for commentary relating to the Fed’s “wind down” of their balance sheet, and it will be interesting to see how rates react today.

The SPDR S&P 500 ETF Trust (NYSE:SPY) was trading at $249.84 per share on Wednesday morning, down $0.13 (-0.05%). Year-to-date, SPY has gained 12.80%.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 121 ETFs in the Large 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.