Analyzing Fund Flows of Financial ETFs in November
The SPDR S&P Insurance ETF (KIE) has added $257 million in assets in 2015 so far. In comparison, during the previous year, the fund witnessed outflows of $139 million. During the week ended November 20, 2015, investors added $7.3 million to KIE. In the month of November, investors added $7.3 million to the ETF.
Increased probability of a rate hike in December is bringing investors back to the financial sector. In the past month, the financial sector has outperformed the broad market and risen 0.6%. The Financial Select Sector SPDR ETF (XLF) represents the financial sector.
Changes in institutional investors’ holdings
Despite the negative flows, institutional investor holdings for the third quarter showed a positive picture for the insurance sector.
In 3Q15, trade activity by 13F filers displayed a 33% rise in aggregate shares held by institutional investors and hedge funds. Among the 67 13F filers holding the stock, 13 funds reduced their exposure to KIE, while seven sold all their holdings of the ETF. In contrast, 17 funds created new positions, and 23 funds increased their exposure to KIE.
Major institutional asset management companies such as Bank of Montreal, Goldman Sachs (GS), Morgan Stanley (MS), Brookstone Capital Management, and Clark Capital Management were top buyers of the ETF during the third quarter.
Companies such as Credit Suisse (CS), Bluecrest Capital Management, Susquehanna Capital Management, and Tower Research Capital were largest sellers of KIE’s shares during the same period.
Browse this series on Market Realist: