FYI: A handful of exchange-traded funds have shed nearly $14 billion in assets in the past week, reversing an influx of cash that came in late June.
They all have one thing in common: All six ETFs follow FTSE Russell’s popular U.S. stock indexes, which underwent their annual rebalance at the closing bell on June 28. That is when funds pegged to those benchmarks sell the companies dropped from the index and buy the new additions.
For ETFs, index changes often lead to ebbs and flows of cash. Such fund flows look a lot like the peaks and valleys on an electrocardiogram, earning them the nickname “heartbeat flows.” Such was the case for the Russell ETFs, which raised $14 billion in the week leading up to the reshuffling, only to see it all come back out days later.
Regards,
Ted
https://www.wsj.com/articles/whiplash-etf-flows-follow-russell-rebalance-11562606228?mod=md_mf_news
