This week alone, FXZ shed about 20% of its overall assets under management due to heavy redemption activity on trading volumes that are a large multiple of the 451,000 shares that typically trades in the fund on a daily basis.
It seems that portfolio managers are cutting back exposure to the laggard sector in portfolios and using the recent bounce back in the equity markets in order to lighten positions, and perhaps embrace sectors that based on relative strength versus the S&P 500 benchmark, seem more poised to break out as the markets run higher such as utilities, healthcare, consumer staples, consumer discretionary and technology.
Finally, for those managers looking to leverage potential short term trading opportunities in the materials space, Direxion Daily Basic Materials Bear 3X (NYSEArca: MATS) and Direxion Daily Basic Materials Bull 3X (NYSEArca: MATL) offer three times daily leveraged exposure to the sector.
First Trust Materials AlphaDEX
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