iShares Russell 2000 Index ETF (IWM) Sees Major Inflows As Stocks Plunge

Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at

Yesterday’s trading, as we reported in our morning piece, was marked with a much lower U.S. Dollar and surging Precious Metals prices prior to the FOMC rate decision, only to see these movers reverse themselves into the close after the rate decision itself.

Gold and Silver, for example, have more than given up all of yesterday’s gains and are once again trading at their lowest levels since late May. Meanwhile, the Dollar, which traded at a new 52- week low yesterday, is spiking today (see UUP).

We have spoken also about larger equity inflows into major index ETFs prior to yesterday’s rate decision as well involving not only Large Caps (SPY, IVV), but also Small-Caps, with IWM taking in over $2 billion.

On the options front, trading has been fairly quiet, although we have seen some nibbling on well out-of-the-money puts in SPY, as some portfolio managers may be enacting hedges going into what could prove to be an unpredictable summer.

Finally, we are watching two newer funds to the marketplace that debuted in late May from issuer GraniteShares known as COMB (Bloomberg Commodity Broad Strategy No K-1 ETF) and COMG (S&P GSCI Commodity Broad Strategy No K-1 ETF). We spoke about ways to access diversified exposure to Precious Metals yesterday, for instance, and these ETFs invest in futures such as Gold, Copper, Natural Gas, Corn, Crude Oil, Silver and so on. According to fund literature, COMB is the lowest cost broad commodity ETF in the U.S., in fact.

The iShares Russell 2000 Index ETF (NYSE:IWM) was trading at $140.06 per share on Thursday morning, down $1.2 (-0.85%). Year-to-date, IWM has gained 3.86%, versus a 8.81% rise in the benchmark S&P 500 index during the same period.

IWM currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 33 ETFs in the Small Cap Blend ETFs category.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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