S&P-500 Buyers & Sellers

Discussion in 'Wall St. News' started by dealmaker, Mar 17, 2020.

  1. dealmaker

    dealmaker

    S&P500 Buyers & Sellers

    March 16, 2020 9:08am by Barry Ritholtz

    [​IMG]
    Source:ETF Stream





    The (March 11) chart above shows three of the largest S&P500 index funds in the world from State Street, BlackRock, and Vanguard, Note these are the exact same index holdings, simply in different ETF wrappers:

    -The State Street Spyders (SPY) are the professionals’ choice.

    -Blackrock iShares (IVV) and Vanguards (VOO) are preferred by RIAs and individual investors.

    As the sell off progressed, what happened was fascinating: the Wall Street pros were net sellers and the Mom & Pop Main Street investors were net buyers. Some of this is attributed to different timelines between investors and traders, short term and long term.

    But I also suspect some of this is explained by psychology: Which S&P500 investors are less emotional and looking to take advantage of a price drop, and which ones are stressed, perhaps in a bit of a panic.

    It is an intriguing differential: I cannot recall ever seeing the exact same asset handled so differently at the same exact time depending upon the ETF issuer — but not the ETF.

    More on this later . . . (Update:Bloomberg column is posted)

    https://ritholtz.com/2020/03/buyers-sellers/
     
    zghorner likes this.
  2. brench

    brench

    SPY is used by traders because that's where the volume is. IVV and VOO by investors because of lower expense ratio
     
    Ayn Rand likes this.