Komfie Manalo, Opalesque Asia: David Santschi, Chief Executive Officer of TrimTabs said flows of electronic traded funds (ETFs) shifted dramatically beneath the market’s calm surface as he also noted massive rotation out of growth and into value this spring.
Santschi said, "Fund flows have shifted dramatically beneath the market’s calm surface," and added, "While most major U.S. stock market averages were little changed in recent weeks, investors showed an overwhelming preference for value over growth."
At the same time, TrimTabs Investment Research reported growth-oriented U.S. equity exchange-traded funds have redeemed $5.6bn (4.6% of assets) since the start of April, while value-oriented U.S. equity ETFs have issued $3.9bn (2.6% of assets).
TrimTabs explained that the shift in flows has occurred across the size spectrum. For example, small-cap growth ETFs have redeemed $750m (5.9% of assets) since the start of April, while small-cap value ETFs have issued $150m (1.0% of assets). Similarly, large-cap growth ETFs have redeemed $4.6bn (4.9% of assets), while large-cap value ETFs have issued $2.6bn (2.5% of assets).
"These flows mark a huge change in trend," Santschi said. "Investors were favoring growth over value for most of the past year."
TrimTabs believes the Federal Reserve’s "tapering" and the disappointing recent performance of recent technology and biotechnology IPOs are probably ...................... To view our full article Click here
|