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5 ETFs That Are Investors' Favorite Amid Geopolitics
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The Russia-Ukraine crisis led to risk-off trading last week (Feb 21-25). While U.S. equities bled $2.2 billion in assets, U.S. fixed income and international equities pulled in $2.6 billion and $2.4 billion in capital, respectively. As such, ETFs overall saw inflows of about $2.6 billion, per etf.com.
Invesco QQQ Trust (QQQ - Free Report) , iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD - Free Report) , iShares Short Treasury Bond ETF (SHV - Free Report) , ProShares UltraPro QQQ (TQQQ - Free Report) and Vanguard S&P 500 ETF (VOO - Free Report) dominated the top creation list last week.
Stock Market Synopsys
Wall Street saw a turbulent week amid Russia’s invasion of Ukraine. After falling for four consecutive days last week, Wall Street showed a heroic turnaround on Feb 24 on the back of President Joe Biden’s comments that compelled investors’ hunt for bargain buys.
However, the jitters over Russia's war in Ukraine and its implications for the global economy are weighing heavily on investors’ sentiment. The West slapped a slew of sanctions against Russia that could hamper ongoing global economic growth and president Vladimir Putin put his country's nuclear deterrent on high alert. Western nations like the United States, Britain, Europe and Canada have blocked some Russian banks from the SWIFT international payments system. New measures also include restrictions on the Russian central bank's international reserves (read: Russia-Ukraine Tensions Escalate: 3 ETFs to Buy).
In retaliation, Russia announced to temporarily stop foreign investors from selling Russian assets. Moscow's move to impose capital controls mean that billions of dollars’ worth of securities held by foreigners in Russia are at risk of being trapped. Further, many experts warned about the possibility of cyberattacks by Russia in retaliation to Western sanctions. In fact, cyberattacks appear to be part of Russia’s war strategy.
Invesco QQQ topped asset flow creation last week, gathering $2 billion in capital. QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is heavily tilted toward information technology at 51%, while communication services and consumer discretionary round off the next two spots.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $182 billion and an average daily volume of 72 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares iBoxx $ Investment Grade Corporate Bond ETF has gathered $1.7 billion in capital. It offers exposure to a broad range of U.S. investment grade corporate bonds by tracking the Markit iBoxx USD Liquid Investment Grade Index. The ETF holds 2,468 securities in its basket with an effective duration of 9.27 years and an average maturity of 13.55 years.
iShares iBoxx $ Investment Grade Corporate Bond ETF has AUM of $34.7 billion and trades in an average daily volume of 17.6 million shares. LQD charges 14 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High-risk outlook.
iShares Short Treasury Bond ETF has pulled in $1.4 billion in capital. It provides exposure to U.S. Treasury bonds that mature in less than 1 year. iShares Short Treasury Bond ETF follows the ICE Short US Treasury Securities Index and holds 30 securities in its basket, with both average maturity of 0.39 years and an effective duration of 0.38 years (read: Cash-Like ETFs Gaining Popularity Ahead of Rate Hikes).
iShares Short Treasury Bond ETF has amassed $15.7 billion in its asset base while trading in solid volume of 2.2 million shares a day. It charges 15 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
ProShares UltraPro QQQ gathered $1.1 billion in capital last week. It offers thrice the returns of its daily performance of the NASDAQ-100 Index, charging 95 bps in annual fees.
ProShares UltraPro QQQ has $17 billion in AUM and trades in a heavy volume of 111.1 million shares, on average.
Vanguard S&P 500 ETF accumulated $1.1 billion in capital. It tracks the S&P 500 Index and holds 507 stocks in its basket, each accounting for more than 7.1% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while healthcare, consumer discretionary, financials and communication services round off its next four spots with a double-digit allocation each (read: Russia-Ukraine Tensions Flare Up: ETF Strategies to Win).
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 8.7 million shares. It has AUM of $278 billion and a Zacks ETF Rank #2 with a Medium risk outlook.
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5 ETFs That Are Investors' Favorite Amid Geopolitics
The Russia-Ukraine crisis led to risk-off trading last week (Feb 21-25). While U.S. equities bled $2.2 billion in assets, U.S. fixed income and international equities pulled in $2.6 billion and $2.4 billion in capital, respectively. As such, ETFs overall saw inflows of about $2.6 billion, per etf.com.
Invesco QQQ Trust (QQQ - Free Report) , iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD - Free Report) , iShares Short Treasury Bond ETF (SHV - Free Report) , ProShares UltraPro QQQ (TQQQ - Free Report) and Vanguard S&P 500 ETF (VOO - Free Report) dominated the top creation list last week.
Stock Market Synopsys
Wall Street saw a turbulent week amid Russia’s invasion of Ukraine. After falling for four consecutive days last week, Wall Street showed a heroic turnaround on Feb 24 on the back of President Joe Biden’s comments that compelled investors’ hunt for bargain buys.
However, the jitters over Russia's war in Ukraine and its implications for the global economy are weighing heavily on investors’ sentiment. The West slapped a slew of sanctions against Russia that could hamper ongoing global economic growth and president Vladimir Putin put his country's nuclear deterrent on high alert. Western nations like the United States, Britain, Europe and Canada have blocked some Russian banks from the SWIFT international payments system. New measures also include restrictions on the Russian central bank's international reserves (read: Russia-Ukraine Tensions Escalate: 3 ETFs to Buy).
In retaliation, Russia announced to temporarily stop foreign investors from selling Russian assets. Moscow's move to impose capital controls mean that billions of dollars’ worth of securities held by foreigners in Russia are at risk of being trapped. Further, many experts warned about the possibility of cyberattacks by Russia in retaliation to Western sanctions. In fact, cyberattacks appear to be part of Russia’s war strategy.
We have detailed the ETFs below:
Invesco QQQ Trust (QQQ - Free Report)
Invesco QQQ topped asset flow creation last week, gathering $2 billion in capital. QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is heavily tilted toward information technology at 51%, while communication services and consumer discretionary round off the next two spots.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $182 billion and an average daily volume of 72 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD - Free Report)
iShares iBoxx $ Investment Grade Corporate Bond ETF has gathered $1.7 billion in capital. It offers exposure to a broad range of U.S. investment grade corporate bonds by tracking the Markit iBoxx USD Liquid Investment Grade Index. The ETF holds 2,468 securities in its basket with an effective duration of 9.27 years and an average maturity of 13.55 years.
iShares iBoxx $ Investment Grade Corporate Bond ETF has AUM of $34.7 billion and trades in an average daily volume of 17.6 million shares. LQD charges 14 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High-risk outlook.
iShares Short Treasury Bond ETF (SHV - Free Report)
iShares Short Treasury Bond ETF has pulled in $1.4 billion in capital. It provides exposure to U.S. Treasury bonds that mature in less than 1 year. iShares Short Treasury Bond ETF follows the ICE Short US Treasury Securities Index and holds 30 securities in its basket, with both average maturity of 0.39 years and an effective duration of 0.38 years (read: Cash-Like ETFs Gaining Popularity Ahead of Rate Hikes).
iShares Short Treasury Bond ETF has amassed $15.7 billion in its asset base while trading in solid volume of 2.2 million shares a day. It charges 15 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
ProShares UltraPro QQQ (TQQQ - Free Report)
ProShares UltraPro QQQ gathered $1.1 billion in capital last week. It offers thrice the returns of its daily performance of the NASDAQ-100 Index, charging 95 bps in annual fees.
ProShares UltraPro QQQ has $17 billion in AUM and trades in a heavy volume of 111.1 million shares, on average.
Vanguard S&P 500 ETF (VOO - Free Report)
Vanguard S&P 500 ETF accumulated $1.1 billion in capital. It tracks the S&P 500 Index and holds 507 stocks in its basket, each accounting for more than 7.1% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while healthcare, consumer discretionary, financials and communication services round off its next four spots with a double-digit allocation each (read: Russia-Ukraine Tensions Flare Up: ETF Strategies to Win).
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 8.7 million shares. It has AUM of $278 billion and a Zacks ETF Rank #2 with a Medium risk outlook.