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Investors get defensive and dump cyclical sector ETFs

Investors appear to be taking more defensive positions in their portfolios as market volatility, geopolitical instability and inflationary concerns continue to roil markets.

Rony Abboud

By Rony Abboud
0

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ETF investors appear to be taking more defensive positions in their portfolios as market volatility, geopolitical instability and inflationary concerns continue to roil markets. Flows into ETFs in defensive sectors have surged and, conversely, cyclical sector ETFs have witnessed a strong sell-off.

Consumer Staples ETFs were among the most bought this week with $445 Million of new inflows, Utilities ETFs saw $304 of new money and HealthCare ETFs picked up $186 Million. Gold ETFs (often considered a safe space for investors when volatility strikes) picked up $277 million of flows this week.

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On the flip side, ETFs tracking Cyclical sectors have suffered due to the flight-to-safety with Financial ETFs losing $338 million, Industrials ETFs losing $235 million, and Consumer Discretionary ETFs suffering from $114 million of outflows.

 

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