November ETF Fund Flows Benefit US Stock ETFs - PowerPoint PPT Presentation

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November ETF Fund Flows Benefit US Stock ETFs

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ETF Fund Flows are good indicator of investor sentiment. We take a look at the November ETF fund flows and other sentiment indicators to gauge market sentiment. – PowerPoint PPT presentation

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Title: November ETF Fund Flows Benefit US Stock ETFs


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ETF TRADING RESEARCH
November ETF Fund Flows Benefit US Stock ETFs
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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
  • Hi, My name is Corey and Im with ETF Trading
    Research, today were reviewing our recently
    published article

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  • November ETF Fund Flows Benefit US Stock ETFs

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  • Money came flooding into ETFs last month.
    Overall, there was 26 billion more inflows than
    outflows. Thats a tremendous amount of money
    coming into ETFs.

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  • Lets take a closer look at the November ETF fund
    flows and other sentiment indicators say about
    the emotion driving the market action.

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  • The Emotion Driving November ETF Fund Flows

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  • We track several indicators of fear and greed.
    And they are split between fear and greed. Stock
    market indicators like the number of advancing
    than declining stocks and the number of stocks

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  • reaching 52-week highs are better than they have
    been in months. At the same time, indicators that
    arent related to the stock market show theres
    still something out there keeping investor greed
    in check.

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  • More than anything, the current emotional state
    can be described as a lack of fear. And we can
    see this reflected in the ETF inflows and
    outflows.

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  • ETFs With The Largest Inflows In November

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  • A trio of iShares ETFs enjoyed the largest ETF
    fund flows in November. iShares Russelll 1000
    IWB had net inflows of 2.55 billion, iShares
    Core US Aggregate Bond AGG added 2.45 billion ,
    and

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  • iShares Russell 2000 IWM had 2.26 billion in
    inflows. Thats large influx of money into US
    stocks and bonds. Its the type of fund flows
    that reflect a lack of fear but without any
    specific bullish bias.

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  • However, one ETF with 844 million in net inflows
    is a bullish indicator worth noting that ETF is
    the United States Oil Fund USO. USO tracks the
    value of WTI crude oil futures on the NYMEX.

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  • The large influx of money into USO is a bet on
    oil moving higher in the near future.

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  • ETFs With The Largest Outflows In November

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  • Interest rate sensitive ETFs were the big losers
    in November. This makes sense given the markets
    view of a potential Fed interest rate hike in
    December.

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  • iShares 1-3 Year Treasury Bond SHY led all ETFs
    with 1.3 billion in outflows. And several other
    ETFs that hold Treasuries followed suit. More
    than 3 billion exited ETFs that hold Treasuries
    during the month.

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  • Another ETF hit with a large outflow was the SPDR
    Gold Trust GLD. This ETF that tracks the price
    of gold saw more outflows as the price of gold
    fell to the lowest level in five years.

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  • Heres the bottom line
  • There is a constant give and take between fear
    and greed in financial market. We are in
    transitional time where the fear has subsided but
    greed hasnt taken control.

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  • This type of environment is prone to long periods
    of range bound trading until something spurs
    investors to take action. But one things for
    sure, the fund flows reflect sentiment toward oil
    and gold are going in opposite directions.

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