(Boursier.com) — History! Further proof of investors’ greater nervousness about big US stocks, the SPDR S&P 500 ETF Trust, the world’s largest ETF, saw its largest outflows since its launch in 1993 in January. According to data compiled by ‘ Bloomberg’, some $6.96 billion was withdrawn from the ETF on Monday alone, the highest in nearly four years. And this while the S&P 500 ended the session with a gain of 1.9%. The ‘SPY’ is not the only ETF to have suffered such a disappointment. The Invesco QQQ Trust Series 1, which tracks the Nasdaq 100 index, recorded its biggest exodus since the dot-com meltdown with nearly $6.2 billion in outflows in January.
While investors exited funds covering US large caps, they favored ‘more targeted’ ETFs such as the Financial Select Sector SPDR ETF and the Vanguard Value ETF, whose inflows reached $3.9 billion respectively and $2.3 billion. “People are more targeted,” says Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence. “For example, energy has been one of the best sectors since the peak and you won’t get much out of that in the general indices.” Overall, about $23 billion was deposited last month in equity ETFs in the United States.
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