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.
SPDR S&P 500 ETF (NYSEArca: SPY)
