Analyzing Fund Flows of Financial ETFs in November
Fund flows to KBE
ETF investors added $41.3 million in the SPDR S&P Bank ETF (KBE) during the month of November 2015. Year-to-date, investors have poured $211 million into KBE. During the week ended November 27, 2015, the ETF saw outflows of $9.1 million.
Shares of KBE have generated returns of 8.5% year-to-date and have outperformed the Financial Select Sector SPDR ETF (XLF) as well as the broad market. In the past month, KBE has returned 3.6% due to increased optimism in the financial sector after the increased probability of a rate hike in December.
Changes in institutional investors’ holdings in 3Q15
Despite the positive flows to KBE over the year, 13F filings of major institutional asset managers for the third quarter of 2015 gave a gloomy picture.
In 3Q15, trade activity by 13F filers displayed a 13.1% fall in aggregate shares held by institutional investors and hedge funds. Among the 133 13F filers holding the stock, 43 funds reduced their exposure to KBE, while 21 funds sold all their holdings. However, 40 funds created new positions and 20 funds increased their exposure to KBE.
Major institutional holders such as Franklin Resources (BEN), Schroder Investment Management, Wexford Capital, Bank of America (BAC), and JPMorgan Chase (JPM) bought shares of KBE during the third quarter.
Meanwhile, institutional investors such as Goldman Sachs (GS), Citigroup (C), Morgan Stanley, Barclays, and Stadion Money Management significantly reduced their exposure to KBE.
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