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ETF Asset Report of October

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·4 min read
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  • XLF
  • COMP
  • SPY

Wall Street was in great shape in October. The S&P 500 (up 5.7%), the Dow Jones (up 4.35%), the Nasdaq Composite (up 6.40%) and the Russell 2000 (up 2.5%) delivered superb performances. The month was filled with events and news like downbeat Q3 U.S. GDP data, the start of an upbeat corporate earnings season, rising inflation and the resultant bets over a sooner-than-expected Fed QE taper and some positive updates on the COVID-19 booster shots of vaccine.

Against this backdrop, below we highlight the asset report of October.

S&P 500 Top Favorite

iShares Core S&P 500 ETF IVV, SPDR S&P 500 ETF Trust (SPY) and Vanguard S&P 500 ETF (VOO) amassed about $8.49 billion, $1.97 billion and $1.70 billion in assets, respectively, in October. Equity investors brushed aside uncertainty over the Fed’s QE tapering.

Nasdaq ETF Investors’ Darling Too

Invesco QQQ Trust QQQ garnered about $2.0 billion in assets in October. The Nasdaq, heavy on technology and growth stocks, deserve special mention for its upbeat performance in October. Solid earnings from several tech behemoth probably led to this gain.

Dividend & Minimum Volatility ETFs Top

SPDR S&P Dividend ETF SDY has amassed about $1.02 billion in assets in the month. Dividend aristocrats that SDY focuses on are blue-chip dividend-paying companies with a long history of increasing dividend payments year over year. Dividend aristocrat funds provide investors with dividend growth opportunities compared to other products in the space but might not necessarily have the highest yields.

 In a critical juncture like this when inflation is rising, the Fed is on the verge of considering a QE tapering and the economy is growing sluggishly, dividend growth ETFs are worth a bet as these offer great safety (read: 4 ETF Areas for Investors to Make the Most of Q4).

As a matter of fact, investorspoured money into iShares MSCI USA Min Vol Factor ETF USMV. The fund hauled in about $996.7 million in the month.

TIPS ETF in Fashion for a Valid Reason

iShares TIPS Bond ETF TIP attracted about $772.5 million in the month. Headline price pressures as gauged by the personal consumption expenditures price index including food and energy increased 0.3% in September, pushing the year-over-year gain to 4.4%. That’s the fastest clip since January 1991. The annual consumer price inflation rate in the United States rose to a 13-year high of 5.4% in September 2021 from 5.3% in August and above market expectations of 5.3% (read: ETF Strategies to Beat Likely "Hyperinflation" in the World).

Investment Grade Corporate Bonds Fall Out of Favor

iShares iBoxx USD Investment Grade Corporate Bond ETF LQD and iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) lost about $1.41 billion and $1.29 billion in assets, respectively, in the month.

Financials Saw Outflows Too

Financial Select Sector SPDR Fund XLF witnessed outflows of $760.2 million in assets. Earnings of big banks were decent in the month. Rates also rose in mid-October which steepened the yield curve.  As a result, XLF gained 7.3% in October, which probably led investors to book profit.

However, rates finally declined in the month-end on downbeat GDP data report. This is another factor why XLF failed to make a killing in October. Direxion Daily Financial Bull 3x Shares (FAS) and iShares Global Financials ETF (IXG) also saw $463 million and $447.2 million in assets, respectively, gushing out.

Energy Sheds Assets Too

Energy Select Sector SPDR Fund XLE has seen assets worth of $490.9 million moving out of the fund. Investors may have probably booked profit thanks to the stupendous energy rally.   


 


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Invesco QQQ (QQQ): ETF Research Reports
 
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
 
Financial Select Sector SPDR ETF (XLF): ETF Research Reports
 
iShares TIPS Bond ETF (TIP): ETF Research Reports
 
iShares iBoxx Investment Grade Corporate Bond ETF (LQD): ETF Research Reports
 
SPDR S&P Dividend ETF (SDY): ETF Research Reports
 
iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports
 
iShares Core S&P 500 ETF (IVV): ETF Research Reports
 
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