Back to top

Image: Shutterstock

Weekly ETF Roundup: U.S. Equity Tops, Gold Bleeds

Read MoreHide Full Article

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 (QQQ - Free Report) was the most-loved ETF with massive inflows of $1.8 billion last week, followed by $1.2 billion in iShares Russell 2000 ETF (IWM - Free Report) . 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).

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 (VTI - Free Report) pulled in $479 million in capital while Vanguard S&P 500 ETF (VOO - Free Report) 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 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 (XLI - Free Report) and Financial Select Sector SPDR Fund (XLF - Free Report) 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: 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 (VUG - Free Report) pulling out more than $1.2 billion. iShares Russell 1000 Growth ETF (IWF - Free Report) and SPDR Portfolio S&P 500 Growth ETF (SPYG - Free Report) also saw outflows of more than $200 million each. All these funds have a Zacks ETF Rank #1.

Gold Bleeds

The ultra-popular ETF SPDR Gold Trust (GLD - Free Report) 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.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>