Analyzing Fund Flows of Financial ETFs in November
The SPDR S&P Capital Markets ETF (KCE) has lost $53.5 million in assets in 2015 so far. In comparison, during the year 2014, the fund witnessed inflows of $74 million. 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, rising 0.6%. The Financial Select Sector SPDR ETF (XLF) represents the financial sector. In comparison, KCE has risen 4.2% in the past month.
Changes in institutional investors’ holdings
In 3Q15, trade activity by 13F filers displayed a 5.6% fall in aggregate shares held by institutional investors and hedge funds. Among the 18 13F filers holding the stock, nine funds reduced their exposure to KCE, while three funds sold all their holdings of the ETF. In contrast, two funds created new positions, and six funds increased their exposure to KCE.
Major institutional asset management companies such as Credit Suisse (CS), Jane Street Group, Citadel Advisors, Spinnaker Trust, and KCG Holdings were top buyers of the ETF during the third quarter.
Institutions such as Morgan Stanley (MS), CLAL Insurance, Barometer Capital Management, Royal Bank of Canada (RY), and DT Investment Partners significantly reduced their exposure to KCE. Among these, Barometer Capital and DT Investment Partners sold all their shares of KCE during the third quarter.
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