Exchange-traded fund flows: Investors are turning to big-cap stocks, and swapping out of gold. Now that we are at new highs, I spent the morning combing through ETF inflows (creations) and outflows (redemptions) year to date, and ran my findings by Dave Nadig at IndexUniverse.
Here's what I see: Classic risk-on so far in 2013 ... getting in the market, and staying in the market.
1) The biggest success has been WisdomTree Japan Hedged Equity Fund (DXJ), which has gone from less than $1 billion in assets last year to $3.8 billion in the first two months of the year. Why? Shinzo Abe's election in Japan created a frenzy of speculation that he would re-flate Japan's economy — and stock market. The DXJ invests in Japanese stocks, but hedges out currency risk, especially important when you are buying the fund using dollars converting into depreciating yen. Result: instant success.