“ETFs dedicated to Financial stocks had $1.5 billion of inflows last month, and those products which focus on Consumer Non-Cyclicals had $752 million of outflows.  Technology ($939 million of inflows) and Basic Materials ($895 million) were the other two sector winners last month.  If you were to look up ‘Cyclical rotation’ in the dictionary, you’d see March’s ETF money flows in the definition,” said Colas.

Despite the Federal Reserve’s rejection of Citigroup’s (NYSE: C) plans to return more capital to shareholders via increased buybacks and dividends, the Financial Select Sector SPDR (NYSEArca: XLF) jumped 4.1% last month. That could be a sign of things to come as XLF, the largest U.S. sector ETF, is one of the two best  of the nine sector SPDRs in the month of April. [Sector ETF Ideas for April]

Financial Select Sector SPDR


Tom Lydon’s clients own shares of SPY.

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