THE VIEW
Friday’s AI-led selloff took the S&P 500 down 1.82% to 7,580.07, yet the plumbing of the ETF business kept running: weekly flows stayed positive and credit held up, with HYG down only 0.19%. This week stacks Apple earnings, Tuesday’s midterm elections and Friday’s jobs report, which gives distribution teams a natural reason to reach advisors who are reassessing concentration risk.
Wall Street closes sharply lower as AI cash burn fears spark tech selloff
The Nasdaq Composite fell 2.86% on Friday, its largest one-day drop since June, after Intel and Amazon results. Sponsors of thematic and tech-heavy ETFs should expect advisor questions about concentration this week.
ICI: Combined long-term fund flows and ETF net issuance
Estimated ETF net issuance was $45.82 billion for the week ended October 21 while mutual funds saw estimated outflows of $33.50 billion. The vehicle shift toward ETFs keeps running regardless of market tone.
ETF fund flows: biggest inflows and outflows
Investors put a net $8.2bn into ETFs in the week to Oct 30, with LQD taking in the most at $1.7bn and SPY losing $4.6bn. Money moved toward investment-grade credit as equities sold off.
Stock futures higher, oil lower as investors return to risk
Futures rose and Treasury yields eased Monday as falling oil prices encouraged a cautious return to risk. The week tests whether Friday’s de-risking sticks through the midterms and the jobs report.