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Strong hands to weak–and so it goes
More than $1 trillion of trend-following capital flowed into global equity exchange-traded funds (ETFs) over the past year–exceeding the combined total of the past 19 years (data: Bank of America Corp. and EPFR Global.) Passive funds tracking U.S. equity indexes accounted for most of that inflow. Funds held in ETFs globally have now moved toward $9.5 trillion and more than twice the amount at the end of 2018. Under the surface, half of the index gains between April and December, came from just five companies–Microsoft, Alphabet, Nvidia, Tesla and Apple–while the majority have fallen. The average S&P 500 ... (full story)