Wall Street posted another week of gains given that U.S. economy is showing signs of stabilization. Additionally, better-than-expected earnings are fueling investors’ optimism. In fact, the major U.S. indices logged in the best 100-day gain since 1933 with the S&P 500 on the verge of hitting new highs (read:
S&P 500 Marches Ahead to Set New Highs: ETFs to Tap). Against such a backdrop, ETFs overall gathered about $11.5 billion capital last week, with U.S. equity ETFs leading the way higher with $5.6 billion inflows, closely followed by $2.1 billion in international equity ETFs and $3.1 billion in U.S. fixed income ETFs, per etf.com. U.S. Equity Shines Invesco QQQ ( was the most-loved ETF with massive inflows of $1.8 billion last week, followed by $1.2 billion in QQQ Quick Quote QQQ - Free Report) iShares Russell 2000 ETF (. QQQ provides exposure to the largest domestic and international non-financial companies listed on the Nasdaq while IWM targets the small-cap segment of the broader U.S. stock market. The former has a Zacks ETF Rank #1 (Strong Buy) and the latter has a Zacks ETF Rank #3 (Hold). IWM Quick Quote IWM - Free Report) The resurgence in technology stocks reignited investors’ interest in the Nasdaq ETF while the latest bouts of upbeat data fueled strength in the small-cap ETF. This is because the pint-sized stocks are closely tied to the U.S. economy and do not have much exposure to the international market. They generally outperform on an improving American economic health (read: Beaten-Down, Small-Cap ETFs Start Rallying: Here's Why). Vanguard Total Stock Market ETF (pulled in $479 million in capital while VTI Quick Quote VTI - Free Report) Vanguard S&P 500 ETF ( attracted $431.3 million in its asset base last week. VTI provides diversified exposure across all market caps as well as growth and value styles, while VOO measures the performance of the S&P 500 Index, which posted its VOO Quick Quote VOO - Free Report) longest winning streak since April 2019. VTI has a Zacks ETF Rank #3 while VOO has a Zacks ETF Rank #2 (Buy). Cyclical Sector Wins
The cyclical sector, which was battered by in the coronavirus crisis, seems to have taken lead last week. This is especially true as the sector is more sensitive to economic conditions and rallies when the economy improves. The latest batch of data suggests that the economy is holding well and faring better than expected. As such,
Industrial Select Sector SPDR ( and XLI Quick Quote XLI - Free Report) Financial Select Sector SPDR Fund ( saw inflows of $696 million and $615 million, respectively. XLI has a Zacks ETF Rank #3 while the latter has a Zacks ETF Rank #2 (read: XLF Quick Quote XLF - Free Report) ETF Laggards are Emerging Leaders: Here's Why). Growth Investing Falters
Growth investing took a back seat last week with the popular
Vanguard Growth ETF ( pulling out more than $1.2 billion. VUG Quick Quote VUG - Free Report) iShares Russell 1000 Growth ETF ( and IWF Quick Quote IWF - Free Report) SPDR Portfolio S&P 500 Growth ETF (also saw outflows of more than $200 million each. All these funds have a Zacks ETF Rank #1. SPYG Quick Quote SPYG - Free Report) Gold Bleeds
The ultra-popular ETF
SPDR Gold Trust ( saw outflows of $1 billion last week on a falling yellow metal price. The bullion logged in its first weekly loss in 10 weeks on the back of strength in U.S. Treasury yields. It declined 4% last week, its biggest weekly percentage fall since early March. The fund has a Zacks ETF Rank #3. GLD Quick Quote GLD - Free Report) Want key ETF info delivered straight to your inbox?
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