August ETF Fund Flows Steady In A Sea Of Volatility

1
ETF TRADING RESEARCH
August ETF Fund Flows Steady In A Sea Of
Volatility
2
Welcome to ETF Trading Research Your premier site
to instantly diversify your portfolio to make
more money! Want More Research and Strategies on
ETFs visit our website ETFtradingresearch.com
3

• Get Your Free Report On The Top ETFs!
• Well tell you about this
• Special Offer
• at the end of the video!

4

• Hi, My name is Corey and Im with ETF Trading
  Research, today were reviewing our recently
  published article

5
August ETF Fund Flows Steady In A Sea Of
Volatility
6
August turned out to be one of the most turbulent
months weve seen in awhile for the financial
markets.
7
The stock market selloff that began in China
eventually spread around the globe and triggered
the first 10 selloff in US stocks since 2011.
8
Despite the market turbulence August ETF Fund
Flows held steady. Total assets invested in US
listed ETFs ticked up 2.7 billion during the
month.
9
Dont get me wrong, thats a fraction of the
inflows we have seen in previous months. And
thats a good indication of
10
The Emotion Driving June ETF Fund Flows
11
Fear is the dominant emotion on Wall Street. Fear
and greed can be measured with a variety of
different indicators. The VIX, put and call
option volume, and market breadth are some of my
favorite to track.
12
Guess what all of these indicators of fear and
greed all have in common right now?They all
indicate investors are running scared the VIX is
perfect example.
13
The VIX is the CBOE Volatility Index. It
measures the implied volatility of SP 500 index
options. It measures how much volatility
investors expect of the next 30-days.
14
(No Transcript)
15
As you can see, the VIX spiked more than twice as
it had been at any other time this year and
continues to be much higher than it had been.
16
In other words, investors are expecting the SP
500 to move three times as much as they did
before the recent selloff started. This is a
clear visual representation of fear in the
markets.
17
ETFs With The Largest Inflows In June
18
Despite the fear in the markets ETFs like
Vanguard SP 500 VOO and SPDR SP 500 SPY still
logged net inflows of around 1.5 billion in
August.This tells me two things
19
Long term investors and swing traders had been
waiting in the wings for a pullback to buy large
cap US stocks. So, there are investors that are
bullish on US stocks despite the overall fearful
tone of the market.
20
It also tells me that there is a growing group of
investors that are using ETFs to invest
systematically. These investors arent following
every market gyration.
21
They have a plan to deploy their new capital into
a group of ETFs every month no matter what the
markets are doing.Thats a good sign of the
growth in the ETF market and the strength of the
US stock market.
22
ETFs With The Largest Outflows In June
23
The outflows also had some clear cut indications
the first being investors dont want anything to
do with emerging markets. Not surprising given
that China is the epicenter of the recent selloff
and its still considered an emerging market.
24
The two ETFs hit hardest by redemptions were the
Vanguard FTSE Emerging Markets VWO and iShares
MSCI Emerging Markets EEM. Investors pulled
more than 1.3 billion out of VWO and EEM in
August.
25
We also saw large redemptions of two US sector
ETFs Health Care Select Sector SPDR XLV and
Technology Select Sector SPDR XLK both had net
outflows of more than 1 billion in August.
26
So, investor also took profits of the high flying
health care sector and trimmed their exposure to
the technology sector.Heres the bottom line
27
Weve seen some profit taking and money moving
from the areas most at risk to further losses
given the backdrop of current events. But
through it all money continues to flow into ETFs.
28
Dont forget that high levels of fear in the
market typically dont last long. Especially
when there is good economic data like we have in
the US right now.
29
If these fears prove to be unfounded it could be
the thing that sparks a massive bull market rally
in US stocks into the end of the year.
30

• Want More from ETF Trading Research.com?
• Follow us on Social Media

31

• Want more FREE information on ETF Trading?
• ETF Trading Research.com

Get Your FREE Report Now
32
READ THIS FREE REPORT!
Get the TOP 3 ETFs For 2015