The Riskalyze Report: Advisors Bet on Rising Rates

At the request of so many investment advisors, my friends at Riskalyze share the big trends in the assets going into and coming out of advisor portfolios every week. The underlying data is aggregated from hundreds of thousands of client accounts across the $120 billion and counting that advisors manage on the Riskalyze platform*. I hope we can uncover interesting trends for you each week…

Riskalyze

November 1st – November 7th

Winners (advisor flows TO these investments increased substantially):
  1. Financials (XLF)
  2. US Equity (SPY, IWV, QQQ)
  3. Catalyst Hedged Futures Strategy (HFXAX, HFXIX)

Losers (advisor flows FROM these investments increased substantially):

  1. Mid Caps (MDY)
  2. Amazon (AMZN)
  3. Qualcomm (QCOM)

 

Josh here – Banks were added across advisor portfolios, specifically via the XLF ETF that tracks the S&P 500’s financial sector stocks.According to Riskalyze CIO Mike McDaniel, this is a first. “First time I can remember financials being on the winner list, after being a constant name on the losers list.” This matches up well with the now over-50% chance of a December rate hike that the bond market is currently pricing in.

Advisors are willing to make the bet early, it seems, as the XLF stocks may enjoy the prospects of a rising spread from net interest margins. Or not, we’ve had plenty of fakeouts and false starts before. Guess we’ll find out soon enough.

Not shown here – Google and Microsoft were also on the loser’s list this week.

 

*(to state the obvious, Riskalyze does not share client sensitive data with me or use animals in testing).

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