5 Hot U.S. Equity ETFs of Last Week
Overall, ETFs pulled in $37.3 billion in capital last week, taking year-to-date inflows to $329 billion. U.S. equity ETFs led the way higher with $30.6 billion in inflows, followed by $5.7 billion in U.S. fixed-income ETFs and $558 million in international ETFs, per etf.com.
iShares Core S&P 500 ETF IVV, Invesco QQQ Trust QQQ, Vanguard Total Stock Market ETF VTI, Vanguard Mid-Cap ETF VO and Vanguard Growth ETF VUG dominated the top creation list last week.
Wall Street ended last week modestly stable. The S&P 500 Index and the tech-heavy Nasdaq Composite lost 0.2% and 0.4%, respectively, while the Dow Jones recorded a slight gain of 0.1%.
While several healthy indicators of the economy earlier last week drove the stock market higher, the news of the historic strike at select Big Three automaker plants was a dampener. The United Auto Workers union officially launched a historic strike at the plants that belong to Ford (F), General Motors (GM) and Stellantis.
Apple’s (AAPL) launch of a new suite of devices and British chipmaker Arm Holdings’ (ARM) blockbuster debut on Nasdaq lifted market sentiments. The latest data showed that U.S. industrial production continued to expand in August, beating expectations even though the pace of increase decreased due to sluggish manufacturing growth. Retail sales data also came in hotter than expected (read: Apple ETFs in Focus Post iPhone 15 Launch).
Meanwhile, U.S. consumer sentiment slipped for the second straight month in September as the University of Michigan's preliminary reading of its Consumer Sentiment Index dropped to 67.7 from the final reading of 69.5 in August. But the economic outlook brightened modestly as household expectations for near-term inflation fell to the lowest in more than a year, according to a survey.
Further, the latest round of data on upbeat retail sales and industrial production from China injected some relief into the stock market. The data suggests that the economy picked up steam last month, easing concerns about growth in the world's second-largest economy.
We have detailed the ETFs below:
iShares Core S&P 500 ETF (IVV)
iShares Core S&P 500 ETF topped asset flow creation last week, pulling in $5.3 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 7% of the assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while healthcare, financials and consumer discretionary round off its next three spots with a double-digit allocation each.
iShares Core S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.4 million shares. It has AUM of $358.2 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Invesco QQQ Trust (QQQ)
Invesco QQQ Trust has accumulated $4.7 billion in capital. It provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is heavily concentrated on the top two firms with a double-digit allocation, while other firms hold no more than 6% of the assets (read: Inverse ETFs to Play If Nasdaq Slumps Ahead).
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $208.9 billion and an average daily volume of 46 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
Vanguard Total Stock Market ETF (VTI)
Vanguard Total Stock Market ETF gathered $3.5 billion in capital. It provides exposure to the broader stock market by tracking the CRSP US Total Market Index. Vanguard Total Stock Market ETF holds a large basket of well-diversified 3,839 stocks with key holdings in technology, consumer discretionary, industrials, healthcare and financials.
Vanguard Total Stock Market ETF charges 3 bps in fees per year from investors and trades in an average daily volume of 3 million shares. VTI has amassed $321 billion in its asset base and has a Zacks ETF Rank #2 with a Medium risk outlook.
Vanguard Mid-Cap ETF (VO)
Vanguard Mid-Cap ETF accumulated $2 billion in capital last week, propelling its AUM to $55 billion. Vanguard Mid-Cap ETF targets the mid-cap segment of the broad U.S. market by tracking the CRSP US Mid Cap Index and holds 340 stocks in its basket. Industrials, information technology, consumer discretionary, financials and healthcare are the top five sectors with double-digit exposure each.
Vanguard Mid-Cap ETF charges 4 bps in annual fees and trades in an average daily volume of 524,000 shares. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: Low Volatility ETFs to Outperform: Here's Why).
Vanguard Growth ETF (VUG)
Vanguard Growth ETF saw inflows of $1.9 billion last week. It offers exposure to the growth segment of large-cap equities and follows the CRSP US Large Cap Growth Index. Vanguard Growth ETF holds 235 stocks in its basket, with none accounting for more than 13.1% share. Technology dominates the fund’s portfolio at 52%, while consumer discretionary and industrials round off the next two sectors with a 21% and 9.4% share, respectively.
Vanguard Growth ETF has AUM of $93.6 billion and an average daily volume of 813,000 shares. It charges 4 bps in fees per year.
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Invesco QQQ (QQQ): ETF Research Reports
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
Vanguard Mid-Cap ETF (VO): ETF Research Reports
