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Last week, ETFs pulled in a modest $1.8 billion in capital, pushing year-to-date inflows to $393.8 billion. U.S. fixed-income ETFs led the way higher, accumulating $2.4 billion in inflows, closely followed by inflows of $981.2 million for U.S. equity ETFs and $331.9 million for currency ETF, per etf.com.
As such, Financial Select Sector SPDR Fund (XLF - Free Report) , Vanguard Short-Term Bond ETF (BSV - Free Report) , SPDR Bloomberg 1-3 Month T-Bill ETF (BIL - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) and iShares 20+ Year Treasury Bond ETF (TLT - Free Report) dominated the top creation list last week.
Wall Street slid for the second consecutive week, with the three major indices tumbling more than 4% each. The decline was trigerred by the Fed Chair Powell warnings that interest rates will remain high to fight inflation even as the economy slows. While a tight monetary policy "for some time" will bring inflation down from its 40-year high, it means slower growth, a weaker job market and "some pain" for households and businesses (read: 5 ETFs Gain as Market Loses Steam in Aug 26 Session).
According to the CME FedWatch tool, nearly half of market participants expect the Fed funds rate to end the year above 3.7%, from 40% a week ago. The Fed raised its key interest rate four times this year in hopes of slowing the worst inflation in decades. The hikes have hurt the housing industry as higher mortgage rates have slowed activity.
The ultra-popular Financial Select Sector SPDR Fund ETF topped the asset flow creation last week, gathering $2.2 billion in capital. It seeks to provide exposure to 66 companies in diversified financial services, insurance, banks, capital markets, and mortgage real estate investment trusts (“REITs”).
Financial Select Sector SPDR Fund has AUM of $35 billion and charges 10 bps in annual fees. It trades in an average daily volume of 38.5 million shares and carries a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: Financials ETFs: Can the Rebound Continue?).
Vanguard Short-Term Bond ETF accumulated about $826 million, taking its total AUM to $39 billion. It offers diversified exposure to the short-term, investment-grade U.S. bond market by tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Vanguard Short-Term Bond ETF is home to 2,614 stocks with an effective maturity of 2.9 years and an average duration of 2.7 years.
Vanguard Short-Term Bond ETF charges 4 bps in annual fees and trades in an average daily volume of 3 million shares.
SPDR Bloomberg 1-3 Month T-Bill ETF accumulated $732 million in capital. It seeks to provide exposure to zero-coupon U.S. Treasury securities with remaining maturity of 1-3 months. It follows the Bloomberg 1-3 Month U.S. Treasury Bill Index, holding 14 securities in its basket. Both average maturity and adjusted duration come in at 0.11 years each (read: Time to Buy Cash-Like ETFs?).
SPDR Bloomberg 1-3 Month T-Bill ETF has AUM of $16.9 billion and an average daily volume of 5.3 million shares. It charges 14 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard S&P 500 ETF pulled in $660 million in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket. Vanguard S&P 500 ETF is heavy on the information technology sector, while healthcare, consumer discretionary and financials round off its next three spots with a double-digit allocation each.
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4 million shares. It has AUM of $280 billion and a Zacks ETF Rank #3 with a Medium risk outlook.
iShares 20+ Year Treasury Bond ETF pulled in $652 million in capital last week. It provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Year Bond Index. iShares 20+ Year Treasury Bond ETF holds 32 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.46 years and an effective duration of 17.98 years.
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $25.3 billion and an average daily volume of 14.4 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook.
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5 ETFs That Investors Loved the Most Last Week
Last week, ETFs pulled in a modest $1.8 billion in capital, pushing year-to-date inflows to $393.8 billion. U.S. fixed-income ETFs led the way higher, accumulating $2.4 billion in inflows, closely followed by inflows of $981.2 million for U.S. equity ETFs and $331.9 million for currency ETF, per etf.com.
As such, Financial Select Sector SPDR Fund (XLF - Free Report) , Vanguard Short-Term Bond ETF (BSV - Free Report) , SPDR Bloomberg 1-3 Month T-Bill ETF (BIL - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) and iShares 20+ Year Treasury Bond ETF (TLT - Free Report) dominated the top creation list last week.
Wall Street slid for the second consecutive week, with the three major indices tumbling more than 4% each. The decline was trigerred by the Fed Chair Powell warnings that interest rates will remain high to fight inflation even as the economy slows. While a tight monetary policy "for some time" will bring inflation down from its 40-year high, it means slower growth, a weaker job market and "some pain" for households and businesses (read: 5 ETFs Gain as Market Loses Steam in Aug 26 Session).
According to the CME FedWatch tool, nearly half of market participants expect the Fed funds rate to end the year above 3.7%, from 40% a week ago. The Fed raised its key interest rate four times this year in hopes of slowing the worst inflation in decades. The hikes have hurt the housing industry as higher mortgage rates have slowed activity.
We have detailed the ETFs below:
Financial Select Sector SPDR Fund (XLF - Free Report)
The ultra-popular Financial Select Sector SPDR Fund ETF topped the asset flow creation last week, gathering $2.2 billion in capital. It seeks to provide exposure to 66 companies in diversified financial services, insurance, banks, capital markets, and mortgage real estate investment trusts (“REITs”).
Financial Select Sector SPDR Fund has AUM of $35 billion and charges 10 bps in annual fees. It trades in an average daily volume of 38.5 million shares and carries a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: Financials ETFs: Can the Rebound Continue?).
Vanguard Short-Term Bond ETF (BSV - Free Report)
Vanguard Short-Term Bond ETF accumulated about $826 million, taking its total AUM to $39 billion. It offers diversified exposure to the short-term, investment-grade U.S. bond market by tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Vanguard Short-Term Bond ETF is home to 2,614 stocks with an effective maturity of 2.9 years and an average duration of 2.7 years.
Vanguard Short-Term Bond ETF charges 4 bps in annual fees and trades in an average daily volume of 3 million shares.
SPDR Bloomberg 1-3 Month T-Bill ETF (BIL - Free Report)
SPDR Bloomberg 1-3 Month T-Bill ETF accumulated $732 million in capital. It seeks to provide exposure to zero-coupon U.S. Treasury securities with remaining maturity of 1-3 months. It follows the Bloomberg 1-3 Month U.S. Treasury Bill Index, holding 14 securities in its basket. Both average maturity and adjusted duration come in at 0.11 years each (read: Time to Buy Cash-Like ETFs?).
SPDR Bloomberg 1-3 Month T-Bill ETF has AUM of $16.9 billion and an average daily volume of 5.3 million shares. It charges 14 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard S&P 500 ETF (VOO - Free Report)
Vanguard S&P 500 ETF pulled in $660 million in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket. Vanguard S&P 500 ETF is heavy on the information technology sector, while healthcare, consumer discretionary and financials round off its next three spots with a double-digit allocation each.
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4 million shares. It has AUM of $280 billion and a Zacks ETF Rank #3 with a Medium risk outlook.
iShares 20+ Year Treasury Bond ETF (TLT - Free Report)
iShares 20+ Year Treasury Bond ETF pulled in $652 million in capital last week. It provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Year Bond Index. iShares 20+ Year Treasury Bond ETF holds 32 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.46 years and an effective duration of 17.98 years.
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $25.3 billion and an average daily volume of 14.4 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook.