U.S. Markets open in 14 mins

ETF Asset Report of September

Sanghamitra Saha

The S&P 500-based ETF SPY, Dow Jones-based ETF DIA and Nasdaq 100-based QQQ added in the range of 0.7% to 1.9% in September. Still, the value quotient prevailed in the market on economic worries. Let’s delve a little deeper.

S&P 500 Tops

September went well for the S&P 500 as evident from the $9.48-billion of inflows intoSPDR S&P 500 ETF Trust SPY and $1.97 billion into iShares Core S&P 500 ETF IVV. News of U.S.-China trade talks scheduled for October probably boosted the broader market.

Small-Caps Gain

Small-cap ETF iShares Russell 2000 ETF IWM accumulated about $3.64 billion in assets in the month. A dovish Fed, trade war tensions, global growth worries, geopolitical risks, compelling valuation and a decently growing U.S. economy have probably worked in favor of pint-sized stocks.

International Bond Market in Fine Fettle   

Fixed income ETFs did well in September as the global market was hurt by the U.S.-China trade tiff. Plus, there was a rout in the market caused by an oil attack on Saudi oilfield. Owing to global growth worries, several developed and emerging economies slashed rates. The ECB will also restart bond purchases of 20 billion euros a month in November.

Vanguard Total International Bond ETF BNDX amassed $2.68 billion in September and long-term U.S. fund iShares 20+ Year Treasury Bond ETF TLT garnered about $2.42 billion. Meanwhile, iShares 3-7 Year Treasury Bond ETF IEI raked in about $1.58 billion.

Gold Continued to Glitter

Gold bullion ETF SPDR Gold Trust GLD fetched about $2.18 billion in assets. Since Saudi oil attack and talks of Trump impeachment made the markets edgy in September, safe-haven metal gold hogged investors’ attention (read: Guide to 10 Most-Heavily Traded ETFs).

Low-Volatility ETFs in Investors’ Favor

Low-volatility products have the potential to outpace the broader market during turbulent times, providing significant protection to the portfolio. These funds comprise more stable stocks that have seen the least price movement. Thanks to heightened market volatility, iShares Edge MSCI Min Vol U.S.A. ETF USMV attracted about $1.54 billion in assets.

Short-Term Treasury Bonds Lost

iShares Short Treasury Bond ETF SHV and Vanguard Short-Term Bond ETF BSV shed about $2.86 billion and $936.8 million in assets in the month.

Consumer ETF Sheds Assets

U.S. consumer confidence receded in September the maximum in nine months, thanks to escalating trade tensions. Consumer Discretionary Select Sector SPDR Fund XLY lost about $522.0 million in assets.

Dow Jones Out of Favor

Though the broader market initially rejoiced the prospective U.S.-China trade talks, the momentum slowed down at the end of the month. In a recent speech at the United Nations General Assembly, Trump urged nations to opt for nationalism and reject globalism. Trump also issued a message to China that he will not conform to any “bad deal” pertaining to trade negotiations. This hurt investors’ confidence in SPDR Dow Jones Industrial Average ETF Trust DIA, which lost about $534.2 million in assets.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
 
SPDR Gold Shares (GLD): ETF Research Reports
 
iShares Core S&P 500 ETF (IVV): ETF Research Reports
 
iShares Short Treasury Bond ETF (SHV): ETF Research Reports
 
iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports
 
iShares 3-7 Year Treasury Bond ETF (IEI): ETF Research Reports
 
iShares Edge MSCI Min Vol USA ETF (USMV): ETF Research Reports
 
Consumer Discretionary Select Sector SPDR Fund (XLY): ETF Research Reports
 
iShares Russell 2000 ETF (IWM): ETF Research Reports
 
Invesco QQQ (QQQ): ETF Research Reports
 
SPDR S&P 500 ETF (SPY): ETF Research Reports
 
Vanguard Short-Term Bond ETF (BSV): ETF Research Reports
 
Vanguard Total International Bond ETF (BNDX): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report