How Much Have Investors Pulled from KIE in 2016?
Hit or Hint: What Are Financial ETF Fund Flows Trying to Tell Us?
Fund flows
The SPDR S&P Insurance ETF (KIE) invests in a portfolio of insurance stocks trading on the New York Stock Exchange. But shares of KIE have been exposed to a global sell-off in effect since the beginning of 2016. YTD (year-to-date), KIE has plunged by 9.5%, in line with the S&P 500 Index (SPY).
YTD, investors have pulled $54.6 million from this KIE. By comparison, investors added $207 million in assets in 2015. During the week ending February 5, 2016, investors withdrew $25.7 million from KIE while the fund returned -2.6% over the same week.
Changes in institutional investors holdings
Despite its negative flows, institutional investor holdings for the third quarter show a positive picture for the insurance sector. In 3Q15, trade activity by 13F filers displays a 33% increase in aggregate shares held by institutional investors and hedge funds. Among the 67 13F filers holding KIE stock, 13 funds reduced their exposure to the fund while seven funds sold all their holdings. By contrast, 17 funds created new positions, and 23 funds increased their exposure to KIE.
Major institutional asset management firms like Bank of Montreal, Goldman Sachs Group (GS), Morgan Stanley (MS), Brookstone Capital Management, and Clark Capital Management were the top buyers of KIE stock during 3Q15. By contrast, institutions including Credit Suisse (CS), Bluecrest Capital Management, Susquehanna Capital Management, and Tower Research Capital were largest sellers of KIE shares.
Now let’s take a look at the SPDR S&P Capital Markets ETF (KCE).
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