Record of escape from a Saudi investment fund in New York

A Saudi fund traded on the New York Stock Exchange has recorded a record number of one-day flights since its inception in 2015, investors having withdrawn $ 119 million Tuesday, or 18% of its total assets, according to Bloomberg Data .

The fund is iShares MSCI Saudi Arabia, an exchange-traded fund called "ETF" or "Exchange Traded Fund".

These funds hold assets such as equities, commodities and bonds and generally operate under an arbitrage mechanism designed to keep the assets close to their net asset value, although price differences may occur from time to time.

The Saudi fund is the most focused on Saudi shares traded in the United States, with total assets of $ 659 million. Cash flows were withdrawn to coincide with the listing of Saudi shares in the MSCI EM Index.

Bloomberg analysts believe the week has been good for those looking to bet on a market that, according to brokers, including Morgan Stanley, is becoming too expensive, given weak fundamentals.

On Tuesday, Morgan Stanley (MSCI) completed the second phase of listing Saudi equities in the developing country index, injecting billions of dollars into passive flow of funds.

A negative investment fund is an investment tool that tracks a specific market index or market segment to determine which investments to invest in. Unlike an active fund, a negative fund manager does not decide which securities the fund buys.

Some active fund managers have benefited from increased liquidity to reduce their holdings: the Saudi Arabian benchmark in Riyadh lost 3.3% this week.