3 Takeaways From SPY’s $8 Billion One Day Haul

March 02, 2017

The SPDR S&P 500 (SPY) had a blockbuster day Wednesday, seeing inflows of $8.2 billion in one day. That’s the ninth largest one-day intake in the fund’s 24-year history, and the largest creation since December 2014.

These assets have gone hand in hand with a solid performance (see the one-year chart below), and have picked up pace since the election last November. 

Chart courtesy of StockCharts.com

What does it mean? Put simply, it could mean that the ETF veteran is one of the most popular “Trump trades” there is. Matt Bartolini, head of SPDR Americas Research at SSGA, offered these three key insights:

1) The driver is bullish sentiment post-election.

SPY’s massive haul on Wednesday is actually a “continuation” of inflows the fund—and other U.S. equity ETFs—has seen since the presidential election last November. Some may even say SPY is one of the popular Trump trades.  

SPY has now taken in about $24 billion since the election. And that’s significant if for no other reason than a seasonality perspective alone. SPY typically doesn’t do well in terms of flows in the first quarter of every year. The fund has been known to have some of its weakest inflows in January and February, which makes the ongoing creations that much more meaningful.

“This is definitely a market-driven effect,” he said. Wednesday’s haul followed President Trump’s first address to Congress Tuesday, which many interpreted to be very pro-growth, and on script. Investors seem to be increasingly bullish about the U.S. market, pushing SPY to buck its seasonal trend. 

 

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