5 ETFs Most Loved by Investors Last Week
Overall, ETFs pulled in $3.8 billion in capital last week, taking year-to-date inflows to $35.5 billion. International equity led the way higher with $2.3 billion in inflows, followed by inflows of $2.1 billion from U.S. fixed-income ETFs and $626.4 million from international equity ETFs.
Vanguard S&P 500 ETF VOO, iShares Core S&P 500 ETF IVV, iShares 20+ Year Treasury Bond ETF TLT, Vanguard Total Bond Market ETF BND and Consumer Discretionary Select Sector SPDR Fund XLY dominated the creation list last week.
Wall Street logged its fifth straight week of gains, with the S&P 500 and technology-heavy Nasdaq Composite Index gaining 1.4% and 2.3%, respectively, last week. The Dow Jones rose fractionally higher. Notably, the S&P 500 closed above 5,000 for the first time in history (read: S&P 500 Nears 5,000: Bet on High-Beta ETFs).
A combination of factors, such as strong quarterly earnings, economic resiliency and technology sector surge, contributed to the historic rally amid delayed prospects of rate cuts, geopolitical tension and overbought market conditions.
Total Q4 earnings of the 338 S&P 500 members that have reported results are up 5.5% from the same period last year on 3.3% higher revenues, with 80.5% beating EPS estimates and 65% beating revenue estimates. The earnings and revenue growth pace represents an acceleration from the recent quarters.
We have detailed the ETFs below:
Vanguard S&P 500 ETF (VOO)
Vanguard S&P 500 ETF topped the asset flow creation last week, gathering $1.7 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 7% of the assets. Vanguard S&P 500 ETF is heavy on the information technology sector, while consumer discretionary, industrials and healthcare round off the next three spots with a double-digit allocation each.
Vanguard S&P 500 ETF charges investors 3 bps in annual fees. It has AUM of $323.6 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares Core S&P 500 ETF (IVV)
iShares Core S&P 500 ETF gathered $917.2 million in capital last week. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 7.4% of the assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while financials, healthcare and consumer discretionary round off its next three spots with a double-digit allocation each (read: S&P 500 About to Hit 5,000: More Reasons for Further ETF Rally).
iShares Core S&P 500 ETF charges investors 3 bps in annual fees. It has an AUM of $420 billion and a Zacks ETF Rank #2 with a Medium risk outlook.
iShares 20+ Year Treasury Bond ETF (TLT)
iShares 20+ Year Treasury Bond ETF accumulated $728.5 million in its asset base. It provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Years Bond Index. iShares 20+ Year Treasury Bond ETF holds 41 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.57 years and an effective duration of 16.63 years.
TLT is one of the most popular and liquid ETFs in the bond space, with an AUM of $49.6 billion. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Why Precision Is Important for Bond ETF Investors).
Vanguard Total Bond Market ETF (BND)
Vanguard Total Bond Market ETF accumulated $675.9 million in its asset base last week. It targets the broad U.S. investment grade bond market by tracking the Bloomberg Barclays U.S. Aggregate Float Adjusted Index. The product holds 10,719 securities in its basket with an average maturity and effective duration of 8.7 years and 6.4 years, respectively.
Vanguard Total Bond Market ETF is the largest bond ETF with AUM of $105.3 billion and charges 3 bps in annual fees.
Consumer Discretionary Select Sector SPDR Fund (XLY)
Consumer Discretionary Select Sector SPDR Fund saw an inflow of $367 million. It offers exposure to the broad consumer discretionary space and tracks the Consumer Discretionary Select Sector Index. It holds 53 securities in its basket, with key holdings in broadline retail, hotels, restaurants and leisure, specialty retail and automobiles with a double-digit allocation each.
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $19.7 billion. It charges 0.09% in expense ratio and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
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iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
Vanguard Total Bond Market ETF (BND): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
