Market Overview

My goal is to be on stage with my computer and let you
see my screen and make sure you know what buttons to
press, where you’re getting in & out, how to calculate
risk, your targets — all of those things.
It’s real-life trading. Make sure you sign up!
- Jerremy Newsome
GET TICKETS

What Are April's Fund Flows Saying About The Market?

Share:
What Are April's Fund Flows Saying About The Market?

Every month, Credit Suisse takes a look at Morningstar fund flow data to measure the temperature of the market. April’s data was market by “severe outflows” in U.S. equities.

Credit Suisse also notes outflows in international funds as well. Where is all this money going?

“The Morningstar data point to a rotation out of US equities and into bonds,” analyst Lori Calvasina explains. “Within bond funds, high yield inflows fell significantly last month after reaching past highs in March.”

Related Link: History Shows Fed Tightening Will Likely Lead To U.S. Recession

The iShares iBoxx $ High Yid Corp Bond (ETF) (NYSE: HYG) is up 3 percent so far this year.

In addition, Calvasina notes funds continue to flow away from growth stocks in 2016. The First Trust IPOX-100 Index Fund (ETF) (NYSE: FPX) is down 1.1 percent in 2016.

In terms of sector equity funds flows, top 2015 sectors, including Healthcare, Consumer Discretionary and Tech, have witnessed deep outflows so far in 2016. Instead, Utilities, Real Estate and Consumer Staples, which were all relatively weak in 2015, have been among the strongest sectors so far in 2016.

Inflows into the Energy sector have been persistent since August of 2015.

Consumer Discretionary and Consumer Staples flows turned negative in April.

So far this year, the top-performing Sector SPDR ETF has been the Utilities SPDR (ETF) (NYSE: XLU), up 12.6 percent. The worst-performing Sector ETF has been the Health Care SPDR (ETF) (NYSE: XLV), which is down 2.8 percent.

Disclosure: the author holds no position in the stocks mentioned.

Posted-In: Credit SuisseAnalyst Color Sector ETFs Bonds Specialty ETFs Markets Analyst Ratings ETFs Best of Benzinga

 

Related Articles (FPX + HYG)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
ORCLDowngrades
FRPTDowngrades
JKSDowngrades25.0
ARRYDowngrades48.0
SMAssumes20.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Kohl's Earnings, Outlook Offered 'Very Few' Silver Linings

10 Biggest Mid-Day Market Gainers