World's Biggest S&P 500 ETF Bleeds Outflows: Why Isn't The Market Crashing? (CORRECTED)
Portfolio Pulse from Piero Cingari
The SPDR S&P 500 ETF Trust (SPY) is experiencing significant outflows, exceeding $40 billion year-to-date, yet the U.S. stock market remains stable. This is due to inflows into lower-cost S&P 500 ETFs like the Vanguard 500 Index Fund ETF (VOO) and the iShares Core S&P 500 ETF (IVV), which have attracted $45.4 billion and $20.8 billion respectively.
June 20, 2024 | 9:24 pm
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POSITIVE IMPACT
The iShares Core S&P 500 ETF (IVV) has recorded $20.8 billion in inflows year-to-date, as investors seek lower-cost alternatives to SPY.
IVV's lower expense ratio and significant inflows position it as a strong alternative to SPY, likely leading to a positive short-term price impact.
CONFIDENCE 100
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
The Vanguard 500 Index Fund ETF (VOO) has attracted $45.4 billion in inflows year-to-date, benefiting from investors fleeing higher-cost ETFs like SPY.
VOO's lower expense ratio and consistent inflows make it an attractive alternative to SPY, likely boosting its price in the short term.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) is experiencing significant outflows, exceeding $40 billion year-to-date, which could dethrone it as the leading S&P 500 ETF.
The significant outflows from SPY indicate a shift in investor preference towards lower-cost alternatives, which could negatively impact SPY's price in the short term.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100