Investors Pulled $8.5 Million from VFH the Week Ended November 20
Investors Pour in to Financial ETFs before Fed’s December Meeting
Fund flows
Exchange-traded fund investors have plowed $677 million into the Vanguard Financials ETF (VFH) year-to-date. During November 2015, investors poured $6.4 million into VFH while they allocated $549 million to the Financial Select Sector SPDR ETF (XLF). During the week ended November 20, the fund recorded asset outflows of $8.5 million.
Institutional investors liquidated exposure to VFH in 3Q15
The 13F filings of major institutional asset managers for 3Q15 give a negative picture for the VFH ETF. In 3Q15, trade activity by 13F filers displayed a 9.4% decline in aggregate shares held by institutional investors and hedge funds. Among the 128 13F filers holding the stock, 33 funds reduced their exposure to IYF, while 17 funds sold all their holdings of IYF. However, 21 funds created new positions and 52 funds increased their exposure to VFH.
Major institutional asset management companies Bank of America (BAC), Morgan Stanley (MS), Bank Hapoalim, Quantitative Advantage, and UBS added VFH to their portfolio in 3Q15. Among these, two took fresh positions in VFH while three added to their existing portfolios. Meanwhile, institutions like 1832 Asset Management, Beacon Capital Management, and M&T Bank (MTB) sold their shares of VFH.
Shares of VFH have been generally flat year-to-date, gaining 0.5%. Among the largest underlying components of these ETFs, Wells Fargo & Co. (WFC) has gained 1.8% year-to-date while Bank of America Corp. (BAC) has lost 1.3%. Meanwhile, JPMorgan Chase (JPM) has gained 7.9% during the same period.
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