ETF Trends
ETF Trends

Money flowing out of stock exchange traded funds suggests some investors are scaling back risk as the market flounders in early summer.

A closer look at ETF flows “makes more evident that the risk-off trade remains in place,” Deutsche Bank analysts said in a note.

“The market couldn’t take it anymore. As more and more disappointing and softer-than-expected U.S. economic data flooded the markets, investors factored in the new environment and pushed the equity markets down the hill,” they wrote.

The S&P 500 lost more than 2% last week and has fallen the past six days.

Long-only stock exchange traded products saw outflows of $2.4 billion last week, according to the latest data. “From a geographic allocation perspective, U.S.-focused ETPs concentrated the bulk of the outflows” at $2.3 billion, according to Deutsche Bank.

Among U.S. sectors, energy ETFs saw selling last week with $455 million in outflows.


The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.