Recent flows in stock and volatility-linked ETFs suggest some investors are turning a bit defensive on expectations that equities may be set for a pullback following a strong-early year rally.
Investors withdrew $1.8 billion from stock ETFs in the latest week, according to Thomson Reuters’ Lipper service.
The latest week’s data hint that some ETF investors think broad indices could see a retreat or a pause, Dow Jones Newswires reported.
“People are wondering: Is this where the market pulls back?” said Jeff Tjornehoj, senior research analyst with Lipper, in the article.
Still, inflows to equity-based ETFs have been extremely strong in 2013 despite last week’s redemptions.