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Oct 27 (Reuters) - Bargain hunting drove investors to exchange-traded funds (ETFs) tracking technology companies after shares fell sharply on mixed earnings from heavyweights. The fund's price fell nearly 4% in the week, as mixed results from megacaps like Alphabet (GOOGL.O) weighed on the sector. Tech funds saw inflows of $2 billion in the week to Wednesday, their largest in eight weeks, according to BofA Global Research, which it attributed to investors "buying the dip". The $14 billion ProShares UltraPro QQQ (TQQQ.O) posted net weekly inflows of $68.15 million, even as the price of the fund fell 9.5%. The $46.5 billion Technology Select Sector SPDR Fund and the $9 billion VanEck Semiconductor ETF (SMH.O) posted net inflows of $205.7 million and $280.6 million, respectively, for the week.
Persons: Todd Sohn, Todd Rosenbluth, Vanda Research's, Bansari Mayur, Shweta Agarwal Organizations: Technology ETF, Apple, Microsoft, Strategas Securities, VettaFi . Tech, Nasdaq, Tech, BofA Global Research, Fund, Semiconductor, Thomson Locations: VettaFi, Bengaluru
"It's more of an evolutionary technology than a revolutionary technology." But Cowen managing director Cai von Rumohr said investors should be prepared for timelines to be pushed back, as this is still considered "early-stage tech." "Given the push for climate and to basically reduce carbon emissions, I think, at some point, there's going to be a market," von Rumohr said. The outlook is still clouded by many variables, von Rumohr said. "It's definitely an important investment opportunity for investors," Moeller said.
Persons: Harry Potter, Austin Moeller, Moeller, Archer, Joby, Cowen, Cai von Rumohr, von Rumohr, Lilium, Von Rumohr, Marco Iachini, Vanda Research's, Bill Peterson, It's Organizations: Archer, Federal Aviation Administration, FAA, Toyota, Stellantis, Air Force, Aerospace, JPMorgan
Retail investors are buying financial stocks in unprecedented amounts after the sector's recent rout, according to Vanda Research. Banks have been pummeled in the wake of Silicon Valley Bank's collapse and concerns over Credit Suisse 's financial situation. Regional bank stocks were particularly hard hit as investors worried whether they had balance sheet issues similar to SVB. Some investors were also buying shares of First Republic Bank, PacWest Bancorp and Truist Financial . Retail investors bought nearly twice as much as the previous week's daily average, totally $1.43 billion in purchases, according to Vanda Research.
Retail investors poured a record amount of money into the stock market in January, according to Vanda Research. Retail investors' interest in the market picked up during the Covid pandemic, at one point fueling a meme-stock frenzy. JPMorgan's chief global market strategist, Marko Kolanovic, also recently noted the pickup in retail interest. Here are the top securities bought by retail investors so far this year, as of Feb. 15, according to Vanda Research. "Contrary to popular belief, retail money market funds' net assets at an all-time high suggest that retail investors still have plenty of capital to allocate to riskier investments, provided that market conditions remain supportive," he added.
It's been a tough year for retail investors — and it's not necessarily expected to get any easier in 2023. "Post-Covid overall net inflow of retail investors has tripled, and almost quadrupled, and stayed there." When it comes to individual stocks, retail investors are buying companies such as Tesla , Apple and Nvidia , according to Vanda Research. Retail investors will likely stick with their game plan into 2023, said Vanda Research's Iachini. "We struggle to see retail investors going back to speculation or doubling down on risky bets to try to make up their losses," he said.
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