Retail investors continue to buy into the dip, targeting U.S. equities and even the beaten-down technology segment and related exchange traded funds.
Among the most popular ETF plays over the past week, the SPDR Portfolio S&P 500 High Dividend ETF (SPYD) saw $1.3 billion in net inflows, the ProShares UltraPro QQQ (TQQQ) brought in $910 million in net inflows, the iShares Russell 2000 ETF (IWM) added $890 million and the SPDR S&P 500 ETF (SPY) attracted $820 million in inflows, according to ETFdb data.
According to brokerage TD Ameritrade’s AJ Kahling, retail investors remain committed to equities as many continued to buy the dip in the recent market turmoil, even targeting tech despite the sector rout, CNBC reports.
“Our indicators, TD Ameritrade [Investor Movement Index], just came out this morning indicating indeed that the retail traders are continuing to buy the dip,” Kahling, head of international education at the firm, told CNBC. TD Ameritrade claims its Investor Movement Index is the “first-ever index based on real investing behavior.”
“One of the interesting things that we saw was … tech continued to be a strong buy,” Kahling added.
For instance, TQQQ has been a popular way to quickly capitalize on a turnaround in the technology-heavy Nasdaq-100. TQQQ is a leveraged ETF that seeks a 3x return on the daily performance of the Nasdaq 100 Index. The index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization.
Kahling argued that investors interpreted the pullback in technology stocks as a buying opportunity.
“It’s looking like these stocks are … at an opportunity to buy them that they haven’t been in two years. If you missed the pullback from the Covid era when we had the 23 days … of declines there, this could be your opportunity,” Kahling said.
“What we think we saw happening was people waiting for, you know, a support level, technical support level to be reached before jumping in and buying that dip.”
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