The Riskalyze Report: Advisors buy Europe and Japan

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

October 23rd – October 29th

Winners (advisor flows TO these investments increased substantially):
  1. Japan Hedged Equity (DXJ)
  2. Silver (SLV)
  3. FTSE Europe (VGK)

Losers (advisor flows FROM these investments increased substantially):

  1. Short-Term Corporate Bond (VCSH)
  2. Utilities (VPU)
  3. The Boeing Company (BA)

Josh here – if it feels like utilities have been sale for most of the year, it’s true, they have. Advisor use of the sector for yield continues to fade. Might have something to do with those rate hike expectations for the December meeting.

In the meanwhile, a very interesting development for the winners’ column. Europe and Japan are both back on the buy list among the advisors who use the Riskalyze platform to manage their accounts. A quick scoreboard for what’s been going on so far this year: In total return, SPY up 6%, while Europe (VGK) is down 3% and DXJ is off a terrible 9%. Could these be merely rebalancing buys, or are advisors going against the grain and looking for value in foreign developed markets?

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