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March ETF Asset Report: What's Hot, What's Not

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Wall Street was moderately upbeat in March with the S&P 500 and the Dow Jones adding about 2.28% and 5.34%, respectively. On the other hand, the Nasdaq Composite has lost 2.4% and the Russell 2000 has retreated about 1.6%.

Value stocks gained an upper hand in the month over growth stocks due to rising rate worries. While Wall Street rejoiced the Biden administration’s $1.9-trillion stimulus, tax hike fears are also looming (read: Top-Performing ETFs of March).

In this scenario, we highlight ETF asset flows for the month of March (per etf.com).

S&P 500 in High Favor

The S&P 500 attracted massive funds last month as optimism for sooner-than-expected normalcy ruled the market. Vanguard S&P 500 ETF (VOO - Free Report) , iShares Core S&P 500 ETF (IVV) and Invesco S&P 500 Equal Weight ETF (RSP - Free Report) amassed about $4.14 billion, $2.75 billion and $2.34 billion in assets, respectively, past month.

Emerging Markets in Sweet Spots

iShares Core MSCI Emerging Markets ETF (IEMG - Free Report) and Vanguard FTSE Emerging Markets ETF (VWO) amassed about $3.48 billion and $2.80 billion in assets, respectively. Some emerging economies enacted rate hikes in March, which probably boosted investors’ optimism in those markets. Vaccine distribution was another positive (read: Most Loved/Hated ETFs of Q1).

Total Stock & Total Bond ETF Gain Too

There were moderate risk-on sentiments globally in the month of March. Vanguard Total Stock Market ETF (VTI - Free Report) attracted about $4.34 billion in assets. Though we saw a bond market selloff in the month, iShares Core Total USD Bond Market ETF (IUSB - Free Report) hauled in about $1.95 billion in assets. The decent yield in the fund, about 2.53% annually, have probably led to this interest. Moreover, the bond fund holds different duration funds, which offers great diversification against the rising rate trend.

Value Stocks Continue to Hog Attention 

Vanguard Value ETF (VTV - Free Report) and iShares Russell 1000 Value ETF (IWD) attracted about $2.27 billion and $2.17 billion in assets, respectively. A rising rate environment in the month favored value investing.

Gold Loses Glitter

SPDR Gold Trust (GLD - Free Report) lost about $3.08 billion in assets as rising risk-on sentiments went against this safe-haven fund. Rising rate worries are likely offer strength to the greenback, which is a negative for the commodity fund. iShares Gold Trust (IAU) saw asset depletion of about $858.4 million.

Corporate Bonds Out of Favor

iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD - Free Report) and iShares iBoxx USD High Yield Corporate Bond ETF (HYG) also saw outflows of about $2.73 billion and $927.3 million in assets, respectively.

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