People stop pouring money into the world's largest ETF

Mar. 18, 2020 11:23 AM ETSPDR S&P 500 Trust ETF (SPY), AGGSPY, AGGBy: Liz Kiesche, SA News Editor85 Comments
  • In yesterday's session, investors pulled $6.5B from the $233B SPDR S&P 500 ETF Trust (SPY -5.2%), the most since October 2018, according to Bloomberg data.
  • The withdrawal came after six straight days of inflows that amounted to ~$16.8B, during the worst drop on Wall Street since 1987. A portion of those inflows may have been shorts borrowing shares to sell them.
  • With many businesses temporarily closing in an effort to stop the spread of the coronovirus, economists have been slashing global economy forecasts and market volatility has intensified.
  • The S&P 500 has moved an average of 7.7% in the past seven sessions and saw its worst day in 30 years on Monday.
  • Bond funds are also seeing outflows. The $70.6B iShares Core U.S. Aggregate Bond ETF (AGG -1.4%) posted eight straight days of withdrawals, pulling a record $4.5B, its worst run since the fund started in 2003.
  • “People are raising money where they can,” said Matt Maley, equity strategist at Miller Tabak. “They’re saying, ‘I don’t care what I have, I want to get out.’”

Recommended For You

Comments (85)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.