Institutional investors bought $4.1 billion in US equities during the week ending September 18, while retail accounts sold $2.2 billion, extending an eighth straight week of outflows. The Russell 2000 ETF (IWM) posted its second-largest weekly outflow this year as the S&P 500 outperformed small caps for a fifth consecutive week.
Institutional investors bought $4.1 billion in US equities in the week ending September 18th, their third weekly purchase in the past four weeks, lifting the four-week average to $2.9 billion, according to The Kobeissi Letter. Hedge funds added another $1.2 billion of buying over the same span, pushing their own four-week average to $1.6 billion in net purchases.
Retail keeps selling as institutions buy
Retail accounts moved the other way, selling $2.2 billion and extending an eighth straight week of outflows, with a four-week average weekly exit of $1.9 billion. According to The Kobeissi Letter: "Institutions are buying while retail is selling."
Small-cap stocks bear the outflows
Not all names are benefiting from the institutional buying spree. The Russell 2000 ETF (IWM) posted $3.3 billion in outflows last week, its second-largest weekly outflow this year and its third-largest weekly withdrawal in nine years.
This comes as the S&P 500 has outperformed the Russell 2000 for five consecutive weeks, the longest streak in at least 12 months.
The streak is on track to extend to six weeks, which would mark the longest stretch of S&P 500 outperformance over small caps in eight years. Since mid-August, the Russell 2000 has declined 7.3%, to its lowest level since June 10th. The ratio of the Russell 2000 to the Nasdaq 100 has fallen to 0.09, its lowest on record, and small-cap stocks are struggling as rates move higher.
Source: The Daily Hodl
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