Reported 11 months ago
Technology-focused stock funds recently saw record inflows, primarily driven by a single fund, XLK, just before its quarterly rebalance. Over $8 billion flowed into XLK, accounting for a significant portion of sector inflows and US equity inflows. This surge is likely linked to a 'heartbeat trade,' where the fund aimed to dispose of appreciated Apple shares tax-efficiently before the rebalance involving Nvidia Corp.
Source: YAHOO