QOTW (Sept 20th 2016): In which sectors are institutional managers trading in the United States?

In which sectors are Institutional Managers trading in the United States?


Chart 1: Net Flow by Sector from ITG’s Peer Universe


Chart 2: IS Cost Distribution by Sector from ITG’s Peer Universe

  • Using ITG’s Peer Group Database we have the opportunity to track industrial flow and look for trends in trading behaviors.
  • In the United States over the last five quarters there has been an increasing percentage of total flow out of the industrial sector and an increasing percentage of total flow into resources.
  • Trading in these sectors, as a percent of total value traded each quarter, has remained constant; there has been a shift in value traded from buys to sells in the case of industrials and from sells to buys for resources. Given the current macroeconomic environment in the U.S. and the low oil prices, it follows that institutional money is flowing out of industrials and into resources.
  • The second chart above shows the IS cost distributions from the 10th to 90th percentiles for industrials and resources over the same time period. Resources are typically more expensive to trade on average and have a wider cost distribution than industrials.

Transaction cost distributions are based on the ITG Peer Group Database, which contains order-level information from approximately 180 buy-side institutions. Implementation shortfall costs are measured relative to the release to the desk and are expressed in basis points.  The second chart shows the cost distribution from the 10th to 90th percentiles.Q2 2016 ITG Peer Group Database statistics are based on preliminary data as of 7/27/2016.


Refer to ITG Peer Analytics for information on available Peer Related Analytics.

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