Meanwhile, ETFs that invest in U.S. equities have recorded inflows of $51.9 billion, so ETF investors “seem to have the right call,” Colas wrote in a note.
“Money flows into all types of investments are notoriously seasonal. August is a low volume month to boot. So a few weeks of money out the door isn’t necessarily the death knell for U.S. stocks,” the strategist said. “But given that ETF money flows have been decently prescient indicator of overall stock market direction for several years, it is worth putting into your toolbox of indicators.”
iShares S&P 500 (NYSEArca: IVV)
