Also seeing inflows last week were corporate bond ETFs, which is a continuation of flows activity that we noted during the previous week.
On the outflows side, over $4 billion flowed out of SPDR S&P 500 (NYSEArca: SPY) which is a reasonably high number compared to a typical week of creation/redemption activity in ETFs. It it hard to say exactly where the assets are flowing to, whether it is portfolio managers simply trimming back on large cap equities and taking profits into recent strength and moving into cash, or perhaps they are moving into other areas of the equity markets.
To finish the week, the Euro closed at its highest level versus the U.S. Dollar since mid December of last year, as the last few trading sessions have reflected a changing sentiment in regards to the Euro’s future seemingly and concerns about Greece seem to have taken a bit of a backseat. That said, related ETF CurrencyShares Euro Trust (NYSEArca: FXE) finished last week rallying more than 3% over the past 6 sessions and within shouting distance of its 200 day moving average.
Going into this week we will be mindful of the continued bids that seem to be around in commodity products, encompassing the metals and oil and related fuel products, and we will look for continued signs out of Europe to see if this recent rally in the Euro is sustainable or simply just a “bear” rally in the context of the steep sell off that began in the currency late last summer.
SPDR S&P 500
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