News that a
Pfizer ( PFE Quick Quote PFE - Free Report) and BioNTech (BNTX) vaccine candidate was more than 90% effective in avoiding COVID-19 in its clinical trial instigated a sharp market rally at the start of last week. Not only this, the news infused $44.5 billion into the stock market last week – its biggest weekly inflow ever, per BofA, as quoted on MarketWatch. About $38.7 billion entered into ETFs while $5.7 billion rushed toward mutual funds.
Against this backdrop, below we highlight asset inflows from Nov 9 to Nov 12 for the ETFs (per etf.com).
Global Stocks Emerge Winners
As there was a sharp stock market rally, global stocks gathered considerable assets last week.
SPDR S&P 500 ETF Trust ( SPY Quick Quote SPY - Free Report) , Vanguard S&P 500 ETF (VOO), Vanguard Total Stock Market ETF ( VTI Quick Quote VTI - Free Report) and Vanguard Total International Stock ETF (VXUS) added about $13.19 billion, $580.6 million, $1.73 billion and $919.4 million in assets, respectively.
Since small-cap stocks are more closely tied to the domestic economy, the latest hopes of a vaccine bode the best for the segment. The small-cap Russell 2000 logged a new record-high close for the first time since August 2018,
per etf.com. No wonder, iShares Russell 2000 ETF (raked in about $1.56 billion in assets. IWM Quick Quote IWM - Free Report) High-Yielding Bonds Win Too
Bonds that yield higher also gained last week as
Vanguard Total Bond Market ETF (BND) added about $805.9 million and iShares iBoxx USD High Yield Corporate Bond ETF ( HYG Quick Quote HYG - Free Report) amassed about $737.4 million in assets, respectively. Economically Sensitive Sectors Gain
Economically sensitive sectors like financials and industrials gained last week as a part of the reflation trade. Risk-on trade sentiments boosted the long-term treasury yields too. This was beneficial for banking stocks’ net interest rate margins. Asa result,
Financial Select Sector SPDR Fund (fetched about $609.6 million in the week. Moreover, XLF Quick Quote XLF - Free Report) Industrial Select Sector SPDR Fund (XLI) hauled in about $696.6 million in the week in hopes of stronger economic activity. Investors Shower Love on Value Stocks
There was a shift from growth stocks to value stocks, which means that investors are wagering on increased inflation and higher rates. As value stocks perform better in a rising rate environment, the group started receiving investors’ attention.
iShares Russell 1000 Value ETF (added about $591.3 million in assets last week. IWD Quick Quote IWD - Free Report) Nasdaq Underperforms
The tech-heavy Nasdaq-100 ETF
Invesco QQQ Trust (lost about $2.13 billion in assets as vaccine news dulled the demand for the winning sector of the pandemic — technology. QQQ Quick Quote QQQ - Free Report) iShares Expanded Tech-Software Sector ETF ( IGV Quick Quote IGV - Free Report) has also shed about $257.2 million in assets. Safe Assets Lost Its Glitter
Gold bullion fund
SPDR Gold Trust (lost about $1.27 billion in assets asinvestors dumped safe-haven assets. Apart from gold bullion, other safe sectors and assets lost assets too. U.S. treasury ETFs like GLD Quick Quote GLD - Free Report) iShares 7-10 Year Treasury Bond ETF ( IEF Quick Quote IEF - Free Report) , iShares 20+ Year Treasury Bond ETF (TLT) and iShares Short Treasury Bond ETF (SHV) lost about $588.8 million, 363.2 million and $320.9 million in assets, respectively. Safe sector ETF Consumer Staples Select Sector SPDR Fund (XLP) also saw about $491.6 million in assets gushing out of the fund. 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 >>