Investors Pour $1.5 Billion Into Tech ETF as Risk Appetite ReturnsBy
PowerShares QQQ sees fourth-largest inflow since 2012
Bulls taking charge again as summer’s tech rout eases
Here’s another sign that the summer wobble in U.S. technology shares may be behind us: Investors sank $1.48 billion into the PowerShares QQQ Trust Series 1 on Tuesday.
That’s the fourth-largest inflow into the industry’s benchmark exchange-traded fund in the past five years, and the second-biggest commitment among U.S.-listed ETFs in yesterday’s trading session.
Valuation fears and fragile market sentiment had spurred a $619 million withdrawal from the $50 billion ETF on Monday, but Tuesday saw a rebound in global risk appetite as U.S. tensions with North Korea eased. The PowerShares QQQ Trust ETF, which has returned a whopping 22.5 percent so far this year, has closed above its 50-day moving average for the past three sessions.
Other technical indicators are less decisive. The ETF’s relative-strength index, a measure of how fast prices have moved, shows the fund is neither overbought nor oversold, while the moving average convergence-divergence indicator, another gauge of momentum, is below its red-signal line, suggesting a downtrend.