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Last week, U.S. stocks logged in the biggest weekly gains since March with both the S&P 500 and the Dow Jones industrial Average, gaining over 2%. The gains came on the back of an improving U.S. economy and the Fed’s hawkish comments that resulted in risk-on trade.
The April minutes revealed that the Fed intends to raise rates sooner than expected if economic growth picks up in the second quarter, inflation climbs and the labor market continues to improve. This is especially true as the recent spate of upbeat data suggests that the U.S. economy is back on track after a slowdown in the first quarter. Additionally, international fundamentals have also improved with stabilization in China and a jump in oil prices to $50 per barrel. The surge in the technology sector also added to the strength (read: Best Oil Rally in 7 Years; 3 Energy ETF Winners).
With this, investors regained their lost confidence in the economy and poured in more than $10 billion into U.S. ETFs last week as per ETF.com, boosting their appeal. Notably, U.S. equity ETFs saw inflows of nearly $9.1 billion last week, followed by nearly $1.2 billion in U.S. fixed income. International equity and fixed income saw outflows of $1.4 billion and $29.3 million, respectively. Below, we have highlighted the five U.S. ETFs that have gained maximum investor attention.
This ultra-popular ETF with a total asset base of around $184.8 billion accumulated over $2.6 billion last week. It provides exposure to the large cap segment of the broad U.S. equity market by tracking the S&P 500 index, and holds 509 stocks in its basket. Apple (AAPL - Free Report) occupies the top position with nearly 3.1% share while other firms hold less than 2.3% of total assets (see: all the Large Cap ETFs here).
The fund is widely spread across a number of sectors with information technology, financials, health care, consumer discretionary, consumer staples and industrials accounting for double-digit exposure. The product charges 9 bps in fees per year and trades in average daily volume of more than 124 million shares. The fund added 2.3% last week and has a Zacks ETF Rank of 3 or ‘Hold’ rating with a Medium risk outlook.
The second top asset gainer was from the small cap segment that pulled in about $1.5 billion in capital last week, taking the total asset base to $25.7 billion. The product provides exposure to a broad basket of 1,948 stocks by tracking the Russell 2000 Index. It is well spread out across components as none of these holds more than 0.35% of assets.
Sector wise, financials takes the top spot with one-fourth share, followed by information technology (17.6%), health care (14.1%), consumer discretionary (13.1%) and industrials (13.0%). The product is extremely liquid, trading in average volumes of around 36 million shares a day and charges 20 bps in annual fees. It gained 3.5% last week and has a Zacks ETF Rank of 3 with a Medium risk outlook (read: Play US Recovery with These Small-Cap Blend ETFs).
VOO achieved the third position, accumulating about $979 million in capital, sending its total AUM to nearly $45 billion. This is also a large cap centric fund tracking the S&P 500 index. Holding 508 stocks in its basket, the fund has a well-diversified approach across a number of components. None of the securities accounts for more than 2.9% of assets while the top four sectors – information technology, financials, health care, and consumer discretionary – make up for a double-digit allocation each.
VOO is the low cost choice in the large cap space, charging just 5 bps in fees and expenses. Volume is solid exchanging about 2.6 million shares a day on average. The fund was up 2.1% last week and has a Zacks ETF Rank of 3 with a Medium risk outlook.
Consumer Staples Select Sector SPDR Fund (XLP - Free Report)
This is the most popular consumer staples ETF that follows the Consumer Staples Select Sector Index. It gathered about $433 million in capital last week, bringing the total AUM to $9.7 billion. The fund charges 14 bps in fees per year from investors and trades in heavy volume of nearly 12.9 million shares a day. In total, the fund holds about 39 securities in its basket with concentration on the top three firms at a combined 28.9% share. Other firms hold no more than 6.03% share.
From a sector look, food and staples retailing takes the top spot at 23.4% while beverages, household products, food products, and tobacco account for a double-digit allocation each. XLP added 1.5% last week and has a Zacks ETF Rank of 3 with a Medium risk outlook (read: Consumer Face Off: Wal-Mart versus Amazon ETFs).
This fund has accumulated $397.2 million in capital last week and seeks to track the CRSP US Large Cap Value Index, which measures the performance of the largest U.S. value stocks. With total AUM of $21.3 billion and an expense ratio of 0.08%, VTV is one of the cheapest funds in this space. Volume is also solid exchanging around 1.6 million shares per day on average. The product holds 317 stocks, which are well spread across each component as none of these holds more than 3.8% share.
Here, financials takes the top spot with nearly one-fourth share while health care, industrials, consumer goods and oil & gas round off to the next four spots with a double-digit allocation each. The ETF gained 2.1% over the past week and has a Zacks ETF Rank of 2 or ‘Buy’ rating with a Medium risk outlook.
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U.S. Equity ETFs Top Asset Flows Last Week
Last week, U.S. stocks logged in the biggest weekly gains since March with both the S&P 500 and the Dow Jones industrial Average, gaining over 2%. The gains came on the back of an improving U.S. economy and the Fed’s hawkish comments that resulted in risk-on trade.
The April minutes revealed that the Fed intends to raise rates sooner than expected if economic growth picks up in the second quarter, inflation climbs and the labor market continues to improve. This is especially true as the recent spate of upbeat data suggests that the U.S. economy is back on track after a slowdown in the first quarter. Additionally, international fundamentals have also improved with stabilization in China and a jump in oil prices to $50 per barrel. The surge in the technology sector also added to the strength (read: Best Oil Rally in 7 Years; 3 Energy ETF Winners).
With this, investors regained their lost confidence in the economy and poured in more than $10 billion into U.S. ETFs last week as per ETF.com, boosting their appeal. Notably, U.S. equity ETFs saw inflows of nearly $9.1 billion last week, followed by nearly $1.2 billion in U.S. fixed income. International equity and fixed income saw outflows of $1.4 billion and $29.3 million, respectively. Below, we have highlighted the five U.S. ETFs that have gained maximum investor attention.
SPDR S&P 500 (SPY - Free Report)
This ultra-popular ETF with a total asset base of around $184.8 billion accumulated over $2.6 billion last week. It provides exposure to the large cap segment of the broad U.S. equity market by tracking the S&P 500 index, and holds 509 stocks in its basket. Apple (AAPL - Free Report) occupies the top position with nearly 3.1% share while other firms hold less than 2.3% of total assets (see: all the Large Cap ETFs here).
The fund is widely spread across a number of sectors with information technology, financials, health care, consumer discretionary, consumer staples and industrials accounting for double-digit exposure. The product charges 9 bps in fees per year and trades in average daily volume of more than 124 million shares. The fund added 2.3% last week and has a Zacks ETF Rank of 3 or ‘Hold’ rating with a Medium risk outlook.
iShares Russell 2000 (IWM - Free Report)
The second top asset gainer was from the small cap segment that pulled in about $1.5 billion in capital last week, taking the total asset base to $25.7 billion. The product provides exposure to a broad basket of 1,948 stocks by tracking the Russell 2000 Index. It is well spread out across components as none of these holds more than 0.35% of assets.
Sector wise, financials takes the top spot with one-fourth share, followed by information technology (17.6%), health care (14.1%), consumer discretionary (13.1%) and industrials (13.0%). The product is extremely liquid, trading in average volumes of around 36 million shares a day and charges 20 bps in annual fees. It gained 3.5% last week and has a Zacks ETF Rank of 3 with a Medium risk outlook (read: Play US Recovery with These Small-Cap Blend ETFs).
Vanguard S&P 500 (VOO - Free Report)
VOO achieved the third position, accumulating about $979 million in capital, sending its total AUM to nearly $45 billion. This is also a large cap centric fund tracking the S&P 500 index. Holding 508 stocks in its basket, the fund has a well-diversified approach across a number of components. None of the securities accounts for more than 2.9% of assets while the top four sectors – information technology, financials, health care, and consumer discretionary – make up for a double-digit allocation each.
VOO is the low cost choice in the large cap space, charging just 5 bps in fees and expenses. Volume is solid exchanging about 2.6 million shares a day on average. The fund was up 2.1% last week and has a Zacks ETF Rank of 3 with a Medium risk outlook.
Consumer Staples Select Sector SPDR Fund (XLP - Free Report)
This is the most popular consumer staples ETF that follows the Consumer Staples Select Sector Index. It gathered about $433 million in capital last week, bringing the total AUM to $9.7 billion. The fund charges 14 bps in fees per year from investors and trades in heavy volume of nearly 12.9 million shares a day. In total, the fund holds about 39 securities in its basket with concentration on the top three firms at a combined 28.9% share. Other firms hold no more than 6.03% share.
From a sector look, food and staples retailing takes the top spot at 23.4% while beverages, household products, food products, and tobacco account for a double-digit allocation each. XLP added 1.5% last week and has a Zacks ETF Rank of 3 with a Medium risk outlook (read: Consumer Face Off: Wal-Mart versus Amazon ETFs).
Vanguard Value ETF (VTV - Free Report)
This fund has accumulated $397.2 million in capital last week and seeks to track the CRSP US Large Cap Value Index, which measures the performance of the largest U.S. value stocks. With total AUM of $21.3 billion and an expense ratio of 0.08%, VTV is one of the cheapest funds in this space. Volume is also solid exchanging around 1.6 million shares per day on average. The product holds 317 stocks, which are well spread across each component as none of these holds more than 3.8% share.
Here, financials takes the top spot with nearly one-fourth share while health care, industrials, consumer goods and oil & gas round off to the next four spots with a double-digit allocation each. The ETF gained 2.1% over the past week and has a Zacks ETF Rank of 2 or ‘Buy’ rating with a Medium risk outlook.
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