All the Flows Went to One Sector

All the Flows Went to One Sector

The S&P 500 bottomed on March 30 and has climbed about 19% since. Money came back into the market on the way up, but almost none of it spread out.

Across the eleven State Street sector ETFs, net flows since the spring low add up to $19.4 billion. Technology alone pulled in $23.4 billion.

Energy was the only other sector to draw real money, about $4.8 billion. Financials, health care, and materials each saw billions walk out the door. The nine sectors outside technology and energy landed somewhere between a small gain and a $3.8 billion loss.

Concentration cuts both ways. It has carried the market higher all spring. The question is what the rest of the market does if technology stops doing the lifting.

Until next week,
Jacob

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