ETF asset Report of September 2023
September is historically the worst month of the year for stocks. This year was no exception. All three key indexes recorded losses this month. The S&P 500 lost 5%. The Nasdaq Composite is off nearly 6% in September. This month were the worst in 2023 for both indexes. The Dow logged a 3.8% decline past month.
Still-sticky inflation, cooling-but-still-steady jobs market, rising oil prices, worries about government shutdown and last but not the least the higher-for-longer rate cues weighed on the market momentum. All these make it more important to pin point ETFs that have garnered and lost most assets in the month of September.
S&P 500 & Broader Market ETFs Win
SPDR S&P 500 ETF Trust SPY, iShares Core S&P 500 ETF IVV and Vanguard S&P 500 ETF VOO amassed about $11.0 billion, $4.53 billion and $4.12 billion in September, respectively. Cheaper valuation probably lured investors to focus on these ETFs as the broader market underperformed in September. Invesco QQQ Trust QQQ and First Trust NASDAQ100-Technology Sector Index Fund QTEC too have fetched in about $2.35 billion and $970.2 million in assets in the month, respectively.
Some Specific Types of Bonds Catch Attention
Total market bond ETF Vanguard Total Bond Market ETF BND has amassed about $2.21 billion in September. iShares National Muni Bond ETF MUB hauled in about $2.55 billion in assets while cash-like bond ETFs like iShares 0-3 Month Treasury Bond ETF SGOV and SPDR Bloomberg 1-3 Month T-Bill ETF BIL amassed about $1.72 billion and $1.35 billion in September. Yields of these bonds were 3.04%, 2.63%, 4.13% and 4.09%, respectively. We pressure decent-to-higher yields in some bond ETFs led investors to those products.
It also may happen that these ETFs were trading at a premium, i.e., its market price was higher than the NAV of its underlying assets, indicating higher demand for the ETF shares than supplies. Due to this discrepancy, an arbitrager may buy the underlying assets at their current market prices and then deliver these assets to the ETF issuer in exchange for new ETF shares, resulting in new unit creations and ETF asset growth.
Consumer Discretionary & Small-Cap Growth ETFs: Investors’ Favorite
Small-cap growth ETF iShares Russell 1000 Growth ETF IWF and Consumer Discretionary Select Sector SPDR Fund XLY hauled in about $1.21 billion and $1.15 billion in assets, respectively, in September. A still-resilient consumer base probably led to this asset growth.
Corporate Bond ETF: Biggest Loser
iShares iBoxx USD Investment Grade Corporate Bond ETF LQD has lost about $4.13 billion in assets in September. The fund looks to track the Markit iBoxx USD Liquid Investment Grade Index. The fund yields 4.10% annually.
Financials Underperform
Financial Select Sector SPDR Fund XLF lost about $1.87 billion in assets in September. As financial stocks underperformed, the fund lost assets as banks have been underperforming due to flattening yield curve.
Emerging Market ETF Loses Assets
iShares MSCI Emerging Markets ETF EEM shed about $1.85 billion in assets in September. A higher greenback has weighed on the emerging markets ETF in September. Invesco DB US Dollar Index Bullish Fund UUP has gained 3.2% in September.
Gold Lost Luster
iShares Gold Trust IAU and SPDR Gold Trust GLD too have seen assets worth of $1.27 billion and $624.7 million gushing out of the fund. With inflation falling, gold could not live up to its status of an inflation-protected asset. Plus, the strong greenback went against the gold prices.
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
Invesco QQQ (QQQ): ETF Research Reports
SPDR Gold Shares (GLD): ETF Research Reports
iShares Gold Trust (IAU): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
Financial Select Sector SPDR ETF (XLF): ETF Research Reports
Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports
iShares MSCI Emerging Markets ETF (EEM): ETF Research Reports
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD): ETF Research Reports
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
iShares National Muni Bond ETF (MUB): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
Vanguard Total Bond Market ETF (BND): ETF Research Reports
iShares Russell 1000 Growth ETF (IWF): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
First Trust NASDAQ-100-Technology Sector ETF (QTEC): ETF Research Reports
SPDR Bloomberg 1-3 Month T-Bill ETF (BIL): ETF Research Reports
iShares 0-3 Month Treasury Bond ETF (SGOV): ETF Research Reports
