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The start of the second quarter has been good for Wall Street as the Dow Jones and the S&P 500 reached a series of record highs last week. The S&P 500 logged in the third consecutive week of gains for the first time in nearly six months, advancing 2.7%. Meanwhile, the Dow Jones and the Nasdaq Composite Index gained 2% and 3.1%, respectively.
The rally came on the back of a rebound in technology stocks as investors focused on prospects for an economic rebound, shrugging off concerns over inflation. The 10-year U.S. Treasury yield pulled back from a 14-month high hit in late March that has encouraged buying of growth stocks. Additionally, faster vaccine deployment, continued progress in more vaccines and a fresh round of stimulus continued to bolster investors’ confidence (read: 7 High-Beta ETFs to Ride the Super-Bull Stock Market).
Adding to the strength is the optimism surrounding the corporate earnings season. The overall earnings picture continues to improve — a trend that will accelerate toward the summer months as signs of a sharp economic rebound emerge. Total Q1 2021 earnings are expected to be up 20.6% from the year-ago level on 5.6% higher revenues with a combination of easy comparisons and strong gains in a number of sectors, per the Earnings Trends.
Given this, overall ETFs gathered about $14.4 billion capital last week, bringing in year-to-date inflows of $269 billion, well ahead the $92.4 billion seen in the year-ago period. U.S. equity ETFs led the way higher last week with $6.6 billion inflows, closely followed by $3.7 billion in international equity ETFs and $3 billion in U.S. fixed income, per etf.com.
As such, a few ETFs garnered solid investor interest last week and will continue to be their darlings should the current market trends prevail. Below we have highlighted five of them:
iShares iBoxx $ High Yield Corporate Bond ETF (HYG - Free Report)
HYG unexpectedly topped the asset flow creation last week, gathering $1.5 billion in capital. The popularity comes on the heels of a decline in yields. This ETF offers exposure to a broad range of U.S. high-yield corporate bonds by tracking the Markit iBoxx USD Liquid High Yield Index. Holding 1,301 securities, effective duration and average maturity come in at 3.66 and 3.75 years, respectively. HYG is one of the most widely used high-yield bond ETFs with AUM of $23 billion and an average daily volume of 29.1 million shares. It charges 49 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Most Loved/Hated ETFs of Q1).
This ETF accumulated around $1.2 billion in its asset base last week. It tracks the Dow Jones U.S. Real Estate Capped Index and holds a basket of 82 securities with each accounting for less than 8.6% share. Specialized REITs dominate the portfolio at 37.8% followed by residential REITs (14.3%) and industrial REITs (10.3%). The fund has AUM of $6.1 billion and trades in a heavy volume of 6.6 million shares a day on average. It charges 42 bps in annual fees and has a Zacks ETF Rank #4 with a High risk outlook.
VOO gathered $1.1 billion in capital last week, taking its total AUM to $212.3 billion. It tracks the S&P 500 Index and holds 509 stocks in its basket with each accounting for no more than 6% share. The fund is widely spread across sectors with information technology, healthcare, consumer discretionary, financials and communication services being the top five, with double-digit allocation each. The ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.9 million shares. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: ETFs to Ride the Market Rally on Strong Economic Data).
This fund has accumulated $1.1 billion in capital, bringing its total AUM to $230.9 billion. It provides exposure to the broad stock market by tracking the CRSP US Total Market Index. The ETF holds a large basket of well-diversified 3669 stocks with key holdings in technology, consumer discretionary, industrials, healthcare, and financials. It charges 3 bps in fees per year from investors and trades in an average daily volume 4.3 million shares. VTI has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Best ETFs for Long-Term Investors).
This fund, which also tracks the S&P 500, saw inflows of $1.1 billion. IVV is one of the most popular ETF with AUM of $270.1 billion and an average daily volume of 3.8 million shares. The product charges the same fees as that of Vanguard product and has a Zacks ETF Rank #3 with a Medium risk outlook.
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5 ETFs That Gained Investors' Love Last Week
The start of the second quarter has been good for Wall Street as the Dow Jones and the S&P 500 reached a series of record highs last week. The S&P 500 logged in the third consecutive week of gains for the first time in nearly six months, advancing 2.7%. Meanwhile, the Dow Jones and the Nasdaq Composite Index gained 2% and 3.1%, respectively.
The rally came on the back of a rebound in technology stocks as investors focused on prospects for an economic rebound, shrugging off concerns over inflation. The 10-year U.S. Treasury yield pulled back from a 14-month high hit in late March that has encouraged buying of growth stocks. Additionally, faster vaccine deployment, continued progress in more vaccines and a fresh round of stimulus continued to bolster investors’ confidence (read: 7 High-Beta ETFs to Ride the Super-Bull Stock Market).
Adding to the strength is the optimism surrounding the corporate earnings season. The overall earnings picture continues to improve — a trend that will accelerate toward the summer months as signs of a sharp economic rebound emerge. Total Q1 2021 earnings are expected to be up 20.6% from the year-ago level on 5.6% higher revenues with a combination of easy comparisons and strong gains in a number of sectors, per the Earnings Trends.
Given this, overall ETFs gathered about $14.4 billion capital last week, bringing in year-to-date inflows of $269 billion, well ahead the $92.4 billion seen in the year-ago period. U.S. equity ETFs led the way higher last week with $6.6 billion inflows, closely followed by $3.7 billion in international equity ETFs and $3 billion in U.S. fixed income, per etf.com.
As such, a few ETFs garnered solid investor interest last week and will continue to be their darlings should the current market trends prevail. Below we have highlighted five of them:
iShares iBoxx $ High Yield Corporate Bond ETF (HYG - Free Report)
HYG unexpectedly topped the asset flow creation last week, gathering $1.5 billion in capital. The popularity comes on the heels of a decline in yields. This ETF offers exposure to a broad range of U.S. high-yield corporate bonds by tracking the Markit iBoxx USD Liquid High Yield Index. Holding 1,301 securities, effective duration and average maturity come in at 3.66 and 3.75 years, respectively. HYG is one of the most widely used high-yield bond ETFs with AUM of $23 billion and an average daily volume of 29.1 million shares. It charges 49 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Most Loved/Hated ETFs of Q1).
iShares U.S. Real Estate ETF (IYR - Free Report)
This ETF accumulated around $1.2 billion in its asset base last week. It tracks the Dow Jones U.S. Real Estate Capped Index and holds a basket of 82 securities with each accounting for less than 8.6% share. Specialized REITs dominate the portfolio at 37.8% followed by residential REITs (14.3%) and industrial REITs (10.3%). The fund has AUM of $6.1 billion and trades in a heavy volume of 6.6 million shares a day on average. It charges 42 bps in annual fees and has a Zacks ETF Rank #4 with a High risk outlook.
Vanguard S&P 500 ETF (VOO - Free Report)
VOO gathered $1.1 billion in capital last week, taking its total AUM to $212.3 billion. It tracks the S&P 500 Index and holds 509 stocks in its basket with each accounting for no more than 6% share. The fund is widely spread across sectors with information technology, healthcare, consumer discretionary, financials and communication services being the top five, with double-digit allocation each. The ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.9 million shares. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: ETFs to Ride the Market Rally on Strong Economic Data).
Vanguard Total Stock Market ETF (VTI - Free Report)
This fund has accumulated $1.1 billion in capital, bringing its total AUM to $230.9 billion. It provides exposure to the broad stock market by tracking the CRSP US Total Market Index. The ETF holds a large basket of well-diversified 3669 stocks with key holdings in technology, consumer discretionary, industrials, healthcare, and financials. It charges 3 bps in fees per year from investors and trades in an average daily volume 4.3 million shares. VTI has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Best ETFs for Long-Term Investors).
iShares Core S&P 500 ETF (IVV - Free Report)
This fund, which also tracks the S&P 500, saw inflows of $1.1 billion. IVV is one of the most popular ETF with AUM of $270.1 billion and an average daily volume of 3.8 million shares. The product charges the same fees as that of Vanguard product and has a Zacks ETF Rank #3 with a Medium risk outlook.
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 >>