Amid the rising cases of the Delta variant of COVID-19, Wall Street is not showing any sign of a slowdown. The S&P 500 and Dow Jones Industrial Average closed the week at record highs. Strong corporate earnings and a fresh infrastructure package have been fueling investors’ confidence.
The Q2 earnings season has been showing impressive momentum on the revenue side in terms of both growth and beat percentages. In fact, the strength is broad-based with earnings on track to reach a new all-time record. Meanwhile, the Senate has passed a $1 trillion infrastructure bill, which would be one of the most substantial federal investments in roads, bridges and rails in decades. The bill, which includes $550 billion in new spending on roads, bridges, and Internet access, will now head to the House of Representatives (read: 4 Sector ETFs to Gain from Infrastructure Bill). Given this, ETFs overall gathered more than $19 billion capital last week (Aug 6-12), bringing in inflows of $545.3 billion year to date. U.S. equity ETFs led the way higher last week with $13.6 billion inflows, closely followed by $3.7 billion in U.S. fixed income ETFs and $1 billion in international equity ETFs, per etf.com. We have highlighted five ETFs that were the top creators of last week and can continue to be investors’ darlings should the current market trends prevail: iShares iBoxx $ Investment Grade Corporate Bond ETF ( LQD Quick Quote LQD - Free Report) This fund topped asset flow creation, gathering about $2.4 billion in capital. It offers exposure to a broad range of U.S. investment grade corporate bonds by tracking the Markit iBoxx USD Liquid Investment Grade Index. The ETF holds 2,422 securities in its basket with an effective duration of 9.69 years and an average maturity of 13.78 years. It has AUM of $42.3 billion and trades in an average daily volume of 13.3 million shares. LQD charges 14 bps in annual fees and has a Zacks ETF Rank #3 (Hold). SPDR S&P 500 ETF Trust ( SPY Quick Quote SPY - Free Report) SPY has gathered $2.2 billion in its asset base, propelling its AUM to $387.1 billion. It tracks the S&P 500 Index and holds 505 stocks in its basket with information technology, healthcare, consumer discretionary, financials and communication services being the top five, with double-digit allocation each. The fund has an expense ratio of 0.09% and trades in an average daily volume of 54.3 million shares. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: S&P 500 to Roar Higher: ETFs to Ride the Rally). Vanguard Total Stock Market ETF ( VTI Quick Quote VTI - Free Report) This fund has accumulated $2 billion in capital, taking its total AUM to $265.9 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 3935 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 3.3 million shares. VTI has a Zacks ETF Rank #2 with a Medium risk outlook. Invesco QQQ ( QQQ Quick Quote QQQ - Free Report) This ETF has gathered around $1.9 billion in its asset base last week. It provides exposure to the 102 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 48.8% of the assets while communication services and consumer discretionary round off the next two spots. QQQ is one of the largest and most-popular ETFs in the large-cap space with an AUM of $184.4 billion and an average daily volume of 32.9 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 with a Medium risk outlook (read: Is Taper-Tantrum Looming Ahead? 6 ETF Plays). Financial Select Sector SPDR Fund ( XLF Quick Quote XLF - Free Report) The ultra-popular financial ETF, XLF accumulated $1.5 billion last week. It seeks to provide exposure to 65 companies in the diversified financial services, insurance, banks, capital markets, mortgage real estate investment trusts, consumer finance, and thrifts and mortgage finance industries. The product has AUM of $42.5 billion and charges 12 bps in annual fees. It trades in an average daily volume of 52.2 million shares and carries a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.