{"id":486333,"date":"2025-10-09T18:39:15","date_gmt":"2025-10-09T18:39:15","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/486333\/"},"modified":"2025-10-09T18:39:15","modified_gmt":"2025-10-09T18:39:15","slug":"short-bias-etfs-see-big-inflows-on-stock-market-pullback-bets","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/486333\/","title":{"rendered":"Short-bias ETFs see big inflows on stock market pullback bets"},"content":{"rendered":"

Short-bias exchange-traded funds, which bet against stock indexes and fast-rising sectors like technology and artificial intelligence, are drawing strong inflows as lofty prices and policy risks spur some investors to position for a pullback.<\/p>\n

According to LSEG Lipper data, global short-bias funds drew US$3.7-billion in September, the biggest monthly inflow in nearly three years. U.S. funds accounted for US$2.2-billion of that while Japanese and South Korean funds took in US$653-million and US$424-million respectively. They have added another US$1.4-billion so far this month.<\/p>\n

Flows into short-bias funds have often increased during times of stress, delivering strong gains in the 2008 financial crisis when broader funds struggled. While such inflows are not always a precursor to downturns, rising allocations to funds that profit from falling markets are seen as a sign of unease, with valuation risks mounting.<\/p>\n

This year, AI optimism has lifted megacap tech firms such as Nvidia (NVDA-Q<\/a>), Microsoft (MSFT-Q<\/a>) and Oracle (ORCL-N<\/a>), pushing the S&P 500, Nasdaq and Dow to fresh peaks. The S&P 500 and Nasdaq hit record highs on Thursday, up 15 per cent and 19 per cent this year, while the Dow has gained 10 per cent.<\/p>\n

The forward 12-month price-to-earnings ratio of the MSCI World index was at a near 5-year high of 20.4 at the end of September.<\/p>\n

However, the surge in equities has elicited a wave of warnings about the risk of a looming correction.<\/p>\n

The Bank of England has pointed to rising risks of a market reversal, citing U.S. auto credit stress and political deadlocks in France and Japan, while the Fed faces pressure that could spark a sharp repricing of U.S. assets.<\/p>\n

International Monetary Fund chief Kristalina Georgieva spoke on Wednesday about the risks to the world economy from potentially large corrections in lofty stock markets.<\/p>\n

JPMorgan Chase CEO Jamie Dimon also warned of a heightened risk of a significant correction in the U.S. stock market within the next six months to two years, the BBC reported.<\/p>\n

So far in October, the Direxion Daily Semiconductor Bear 3X Shares has led with US$255-million of inflows, followed by US$200-million into the ProShares UltraPro Short QQQ and US$143-million into the ProShares Short S&P 500.<\/p>\n

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Short-bias exchange-traded funds, which bet against stock indexes and fast-rising sectors like technology and artificial intelligence, are drawing…\n","protected":false},"author":2,"featured_media":486334,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3091],"tags":[6934,6925,6935,1500,6918,6936,51,943,6917,6930,6931,6927,6919,6916,1700,2266,728,6929,6923,6946,6920,6921,1234,6926,388,3611,6607,2441,603,6941,6942,6944,6939,6943,6937,6940,6922,6932,6933,285,3027,6938,6924,53,183,6928,16,15,727,263,6945],"class_list":{"0":"post-486333","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-alberta","9":"tag-arts-news","10":"tag-bc","11":"tag-breaking-news","12":"tag-breaking-news-video","13":"tag-british-columbia","14":"tag-business","15":"tag-canada","16":"tag-canada-news","17":"tag-canada-sports","18":"tag-canada-sports-news","19":"tag-canada-trafficcanada-weather","20":"tag-canadian-breaking-news","21":"tag-canadian-news","22":"tag-economy","23":"tag-education","24":"tag-environment","25":"tag-federal-government","26":"tag-foreign-news","27":"tag-globe-and-mail","28":"tag-globe-and-mail-breaking-news","29":"tag-globe-and-mail-canada-news","30":"tag-government","31":"tag-life-news","32":"tag-lifestyle","33":"tag-local-news","34":"tag-manitoba","35":"tag-markets","36":"tag-national-news","37":"tag-new-brunswick","38":"tag-newfoundland-and-labrador","39":"tag-northwest-territories","40":"tag-nova-scotia","41":"tag-nunavut","42":"tag-ontario","43":"tag-pei","44":"tag-photos","45":"tag-political-news","46":"tag-political-opinion","47":"tag-politics","48":"tag-politics-news","49":"tag-quebec","50":"tag-sports-news","51":"tag-technology","52":"tag-travel","53":"tag-trudeau","54":"tag-uk","55":"tag-united-kingdom","56":"tag-us-news","57":"tag-world-news","58":"tag-yukon"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/486333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=486333"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/486333\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/486334"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=486333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=486333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=486333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}