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The month of July was moderately upbeat for the S&P 500. The month marked the sixth straight monthly gains. While delta variant of COVID-19 subdued the market momentum occasionally, upbeat earnings helped investors to keep hope on the recovery. In this scenario, we highlight ETF asset flows for the month of July (per etf.com)
S&P 500 & Total Stock Market Top
The S&P 500 gained materially in the month on upbeat corporate earnings.So far, 59% of S&P 500 companies have reported second-quarter earnings results, and 88% of companies have surpassed Wall Street's earnings per share estimates, according to FactSet data. And the expected earnings growth rate for S&P 500 companies is tracking toward 85.1%, which marked the biggest leap since the fourth quarter of 2009.
Vanguard S&P 500 ETF (VOO - Free Report) and Vanguard Total Stock Market ETF (VTI - Free Report) amassed about $5.04 billion and $3.25 billion in assets, respectively.
Bond Market Hot Too
Vanguard Short-Term Bond ETF (BSV - Free Report) fetched about $4.92 billion in assets. Renewed coronavirus threat in different parts of the world have probably given a boost to safe-haven bond investing.
Pharma & Healthcare Corners Winning
Earnings expectations of the healthcare sector are upbeat as the sector is likely to log 23.2% growth in the second quarter of 2021 on revenue growth of 18.4%, per the Earnings Trends issued on Jul 28, 2021. Higher demand for drugs, testing and vaccines for COVID-19 is a plus for the sector.
The valuation of the sector is also compelling. The forward P/E of the large-cap pharma industry is 14.77X versus 21.00X of the S&P 500. The PEG of the industry is 2.22% versus 2.04% of the S&P 500. The dividend yield of the sector is 2.55% versus 1.35% of the S&P 500. Health Care Select Sector SPDR Fund (XLV - Free Report) has attracted about $2.96 billion in assets (read: Pharma & Healthcare ETFs at a One-Year High: Here's Why).
TIPS Stand Tall
Annual inflation rate in the United States jumped to 5.4% in June of 2021 from 5% in May, hitting a fresh high since August of 2008, and well above forecasts of 4.9%. No wonder, iShares TIPS Bond ETF (TIP - Free Report) has added about $2.62 billion in assets.
Small-Cap ETFs Were Among the Big Losers
iShares Russell 2000 ETF (IWM) saw about $1.80 billion in assets gushing out. In any case, July was dominated by large-cap stocks and ETFs. Probably this was the reason why investors shied away from the small-cap segment. iShares Core S&P Small-Cap ETF (IJR - Free Report) and iShares S&P Small-Cap 600 Value ETF (IJS - Free Report) too lost about 1.13 billion and $979.9 million in assets.
Developed Markets on a Winning Momentum Too
iShares Core MSCI EAFE ETF (IEFA - Free Report) and Vanguard FTSE Developed Markets ETF (VEA) lost about $2.35 billion and $1.95 billion in assets, respectively. Gradual reopening of economies along with super-easy money policies helped the global markets to garner investors’ attention.
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ETF Asset Report of July
The month of July was moderately upbeat for the S&P 500. The month marked the sixth straight monthly gains. While delta variant of COVID-19 subdued the market momentum occasionally, upbeat earnings helped investors to keep hope on the recovery. In this scenario, we highlight ETF asset flows for the month of July (per etf.com)
S&P 500 & Total Stock Market Top
The S&P 500 gained materially in the month on upbeat corporate earnings.So far, 59% of S&P 500 companies have reported second-quarter earnings results, and 88% of companies have surpassed Wall Street's earnings per share estimates, according to FactSet data. And the expected earnings growth rate for S&P 500 companies is tracking toward 85.1%, which marked the biggest leap since the fourth quarter of 2009.
Vanguard S&P 500 ETF (VOO - Free Report) and Vanguard Total Stock Market ETF (VTI - Free Report) amassed about $5.04 billion and $3.25 billion in assets, respectively.
Bond Market Hot Too
Vanguard Short-Term Bond ETF (BSV - Free Report) fetched about $4.92 billion in assets. Renewed coronavirus threat in different parts of the world have probably given a boost to safe-haven bond investing.
Pharma & Healthcare Corners Winning
Earnings expectations of the healthcare sector are upbeat as the sector is likely to log 23.2% growth in the second quarter of 2021 on revenue growth of 18.4%, per the Earnings Trends issued on Jul 28, 2021. Higher demand for drugs, testing and vaccines for COVID-19 is a plus for the sector.
The valuation of the sector is also compelling. The forward P/E of the large-cap pharma industry is 14.77X versus 21.00X of the S&P 500. The PEG of the industry is 2.22% versus 2.04% of the S&P 500. The dividend yield of the sector is 2.55% versus 1.35% of the S&P 500. Health Care Select Sector SPDR Fund (XLV - Free Report) has attracted about $2.96 billion in assets (read: Pharma & Healthcare ETFs at a One-Year High: Here's Why).
TIPS Stand Tall
Annual inflation rate in the United States jumped to 5.4% in June of 2021 from 5% in May, hitting a fresh high since August of 2008, and well above forecasts of 4.9%. No wonder, iShares TIPS Bond ETF (TIP - Free Report) has added about $2.62 billion in assets.
Small-Cap ETFs Were Among the Big Losers
iShares Russell 2000 ETF (IWM) saw about $1.80 billion in assets gushing out. In any case, July was dominated by large-cap stocks and ETFs. Probably this was the reason why investors shied away from the small-cap segment. iShares Core S&P Small-Cap ETF (IJR - Free Report) and iShares S&P Small-Cap 600 Value ETF (IJS - Free Report) too lost about 1.13 billion and $979.9 million in assets.
Developed Markets on a Winning Momentum Too
iShares Core MSCI EAFE ETF (IEFA - Free Report) and Vanguard FTSE Developed Markets ETF (VEA) lost about $2.35 billion and $1.95 billion in assets, respectively. Gradual reopening of economies along with super-easy money policies helped the global markets to garner investors’ attention.