Mystery Surrounds $7 Billion Outflow From Vanguard S&P 500 Fund

[oscaroscar]

https://www.bloomberg.com/news/arti...-7-billion-outflow-from-vanguard-s-p-500-fund

More than $7 billion was pulled from the $172 billion Vanguard S&P 500 ETF (VOO) on a single day this week, according to data compiled by Bloomberg, about 4% of the fund’s assets. But trading volumes were below the one-year average and there were no obvious outsized transactions, while the U.S. equity benchmark rose on the day -- making a mass exodus less appealing.

Anyone an idea what might have happened here?

 

[%CE%A7%CF%81%CE%B9%CF%83%CF%84%CF%8C%CF%82]

@oscaroscar If you read the article it explains they swapped the etf for the underlying shares.

 

[girlmom2]

@%CE%A7%CF%81%CE%B9%CF%83%CF%84%CF%8C%CF%82 That's the definition of an outflow. Inflow is swapping stocks for etf.
Nothing to do with buying or selling etf shares

 

[beptuduc]

@oscaroscar That is unfortunate. I want VOO to increase its assets held over time to add more liquidity. Then again VOO is a buy and hold for most, SPY is the traders delight.

 

[medic75]

@beptuduc Tbh SWPPX has wayyyyy better ER compared to VFIAX/VOO

 

[dinkold]

@oscaroscar Could this be an OTC swap of Musk's Tesla shares for VOO? Vanguard has to acquire Tesla stock. Something about this kind of tax free swap tickles my memory. It has to be an entity created and it takes shares of a single stock and gives out shares of itself to that stock holder and does the same for others to facilitate concentrated stock positions being diversified.

 

[kdot32]

@oscaroscar With Tesla enter the s and p soon, there will have to be a lot of rebalancing of these type of funds. I’m not sure this is related of not.

 

[anonymous1010]

@oscaroscar institutional seller needed to get out so they used a low volume day and stopped out retail.

 

[fruitsnack31]

@oscaroscar So this post is over two months old... but I think I figured it out (after the huge inflow this past week)... https://www.bloomberg.com/graphics/2019-vanguard-mutual-fund-tax-dodge/