Checkout Commodity Trading Research Articles for FREE! http://www.etftradingresearch.com
ETF Fund Flows are good indicator of investor sentiment. We take a look at the November ETF fund flows and other sentiment indicators to gauge market sentiment.
#ETFFundFlows, $GLD, $USO, $AGG, $IWM, $IWB
2. Welcome to ETF Trading Research Your
premier site to instantly diversify your
portfolio to make more money! Want More
Research and Strategies on ETFs visit our
website
ETFtradingresearch.com
3. Hi, My name is Corey and I‘m with ETF
Trading Research, today were reviewing
our recently published article…
5. Money came flooding into ETFs last
month. Overall, there was $26 billion
more inflows than outflows. That’s a
tremendous amount of money coming
into ETFs.
6. Let’s take a closer look at the November
ETF fund flows and other sentiment
indicators say about the emotion driving
the market action.
8. We track several indicators of fear and
greed. And they are split between fear
and greed. Stock market indicators like
the number of advancing than declining
stocks and the number of stocks
9. reaching 52-week highs are better than
they have been in months. At the same
time, indicators that aren’t related to the
stock market show there’s still
something out there keeping investor
greed in check.
10. More than anything, the current
emotional state can be described as a
lack of fear. And we can see this reflected
in the ETF inflows and outflows.
12. A trio of iShares ETFs enjoyed the largest
ETF fund flows in November. iShares
Russelll 1000 $IWB had net inflows of
$2.55 billion, iShares Core US Aggregate
Bond $AGG added $2.45 billion , and
13. iShares Russell 2000 $IWM had $2.26
billion in inflows. That’s large influx of
money into US stocks and bonds. It’s the
type of fund flows that reflect a lack of
fear but without any specific bullish bias.
14.
15. However, one ETF with $844 million in
net inflows is a bullish indicator worth
noting… that ETF is the United States Oil
Fund $USO. USO tracks the value of WTI
crude oil futures on the NYMEX.
16. The large influx of money into USO is a
bet on oil moving higher in the near
future.
18. Interest rate sensitive ETFs were the big
losers in November. This makes sense
given the markets view of a potential Fed
interest rate hike in December.
19. iShares 1-3 Year Treasury Bond $SHY led
all ETFs with 1.3 billion in outflows. And
several other ETFs that hold Treasuries
followed suit. More than $3 billion exited
ETFs that hold Treasuries during the
month.
20. Another ETF hit with a large outflow was
the SPDR Gold Trust $GLD. This ETF that
tracks the price of gold saw more
outflows as the price of gold fell to the
lowest level in five years.
21. Here’s the bottom line…
There is a constant give and take
between fear and greed in financial
market. We are in transitional time where
the fear has subsided but greed hasn’t
taken control.
22. This type of environment is prone to long
periods of range bound trading until
something spurs investors to take action.
But one thing’s for sure, the fund flows
reflect sentiment toward oil and gold are
going in opposite directions.