WallachBeth ETF Market Update July 23

With the day starting off  heavily to the downside in equities, risk-off was the over-riding theme, best illustrated by a 6.15% uptick in VXX.

Otherwise, flows in the market picked up where last week’s left off; continued inflows into Hi-Yld and Investment Grade Corporate bonds (JNK and HYG). A spike in Spanish bond yields led to greater than average selling volumes in country ETFs (EWP down 1.35% and EWG down 3.25%). We also noticed larger than usual block trades in IEI and IEF, instigated by sellers in these 3-7 and 7-10 yr treasury bond ETFs.

Municipal Bonds and REITS were among the few gainers on the day. On our desk, we saw flows into MLN and REZ.

International names remained active again with an abundance of 2-way flows. We saw sellers of India, Rare Earths, REMX and buyers of EFAV.

Domestic ETFs with a focus on dividends saw inflows; PEY and FDL in particular.

As a reminder, I’m on holiday this week; Eric Mustin is standing in and provided above commentary.

Advertisements

Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s