By Tyler Durden
Two weeks ago, when looking at the mid-March surge in equity ETF inflows, JPMorgan – which previously had been worried that retail investors may no longer be the marginal buyer of equities – concluded that as retail investors resumed their equity ETF buying, they had once again emerged as the marginal buyer of equities.
Not any more.
As Morgan Stanley’ S&T team writes in a note from this morning, over the past week, US Equity ETFs saw $7.5bn of outflows, a dramatic reversal from trends earlier in the year, and as a result 54% of all YTD inflows have now come out.
Furthermore, as the bank adds, all US-listed ETFs (Equities & Fixed Income) have seen over $6Bn of outflows over the past week, “so this feels much less like a rotation and much more like money being taken out of the market.”
As MS writes, while there has been a lot of discussion on SPY outflows, the MS ETF Desk is more focused on VOO (Vanguard S&P 500), which had $1.2Bn of outflows last week, a -5 std dev. event based on rolling 5-day changes in shares outstanding. The reason MS prefer VOO is that it tends to see much fewer fluctuations …read more