December Inflows into IYF Have Reached $37 Million

Strong Fund Flows to Financial ETFs despite Recent Weakness

(Continued from Prior Part)

Fund flows

The iShares US Financials ETF (IYF) recorded net outflows of $3.6 million during the week ended December 11. Exchange-traded fund investors have withdrawn $806 million from IYF during the year so far.

During November 2015, the fund witnessed net inflows of $144 million. The net flows calculation does not include the performance of the ETF, but only share redemptions (outflows) and share purchases (inflows). Net inflows create excess cash for managers to invest, which theoretically creates demand for the ETF’s holdings. Year-to-date, IYF has lost 3.3% and has underperformed the broad markets.

Institutional investors added exposure to IYF in 3Q15

In 3Q15, trade activity by 13F filers displayed a 4% decline in aggregate shares held by institutional investors and hedge funds. Among the 139 13F filers holding the stock, 51 funds reduced their exposure to IYF, while 23 funds sold all their holdings of IYF. However, eight funds created new positions and 43 funds increased their exposure to IYF.

Major institutional holders FMR LLC, AssetMark, Morgan Stanley (MS), Bank of America (BAC), and Bank Hapoalim have added IYF to their holdings in 3Q15. Meanwhile, institutions TransAmerica Financial, Pictet Asset Management, United Capital Financial Advisors,(UCAP), and LPL Financial (LPLA) significantly reduced their holdings of IYF.

Continue to Next Part

Browse this series on Market Realist:

• Part 1 - Financial ETF XLF Traded below Its Moving Averages on December 11

• Part 2 - XLF Has Had Inflows of $828 Million in December to Date

• Part 3 - Vanguard Financials Crossed below Moving Averages on December 9