Financial ETFs across the Globe See Bearish Trends
Fund flows to CHIX
ETF investors have withdrawn almost $32 million from the Global X China Financials ETF (CHIX) in the last six months. So far during the year, investors have added $1.6 million to CHIX.
Concerns regarding the Chinese economic slowdown have been worrying investors in emerging markets. As a result, we are witnessing a flight of capital to developed economies (FEZ).
Change in institutional investors’ holdings
Negative flows to CHIX correspond with the fall in investor trade activity as seen by the 13F filings of major institutional asset managers for the third quarter. In 3Q15, trade activity by 13F filers displayed a 47.5% fall in aggregate shares held by institutional investors and hedge funds.
Among the 18 13F filers holding the stock, seven funds reduced their exposures to CHIX, while nine funds sold all their holdings of the ETF. In contrast, three funds created new positions, and four funds increased their exposures to CHIX.
Major institutional asset management companies such as Permal Asset Management, Royal Bank of Canada (RY), Jane Street Group, Old Mission Capital, and Flow Traders were the top net buyers of CHIX.
Meanwhile, institutions such as Janney Capital Management, Bluefin Trading, Morgan Stanley (MS), Creative Planning, and Citadel Advisors sold their holdings of CHIX during the third quarter. Among these, Old Mission Capital liquidated all its exposure to CHIX, while the others just reduced their holdings. Other funds to sell their holdings of CHIX were UBS, Citigroup (C), and Metlife (MET)
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