Net inflows into U.S. equities by retail investors continued to climb over the past week as the stock market started the new year in a buoyant mood, but data analysts at Vanda Research said the pace of purchasing could easily slide if bullish momentum stalls.
The table below shows ETFs are currently experiencing the biggest flow divergences since 2022. “The three bottom ETFs are the last two years’ more popular vehicles,” said analysts, while the biggest gainers, such as Direxion Daily Semiconductor 3X Bear SOXS , have a defensive tilt to them. “[Tesla] stock remains a bellwether of overall retail sentiment/health, in our view,” Iachini said. “Retail investors are buying the EV-maker’s shares at one of the widest margins relative to their history and other securities.”
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