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Wall Street had a great ride last week with all the three major indices closing in green. The tech-heavy Nasdaq Composite Index topped 15,000 for the first-time ever and climbed 2.8% while the S&P 500 and Dow Jones gained 1.5% and 0.9%, respectively.
Renewed optimism over the global economic recovery after the first full U.S. approval of a COVID-19 vaccine made by Pfizer (PFE - Free Report) and BioNTech bolstered risk-on trade. This is because the full approval will help put brakes on the ongoing surge in COVID-19 Delta variant cases and lead to continued reopening of the economy. Additionally, strong corporate profit growth and ultra-easy monetary policies remain the major catalysts (read: ETFs to Rise on Full FDA Approval for Pfizer COVID-19 Vaccine).
Further, a surge in Chinese technology stocks after many weeks of sell-off brought about by Beijing’s regulatory crackdown added to the strength. Excellent results reported by JD.com (JD - Free Report) and Pinduoduo (PDD - Free Report) , as well as the share buyback announcement by Tencent (TCEHY - Free Report) led the rebound.
The Fed’s dovish stance also supported the rally to end the week. Chairman Jerome Powell in the Jackson Hole conference stated that the central bank is in no hurry to raise interest rates though it will gradually begin tapering $120 billion in monthly bond purchases by the end of the year.
Given this, ETFs overall gathered about $8.5 billion capital last week (ending Aug 26), bringing inflows of $569.6 billion year to date. U.S. fixed income ETFs led the way higher last week with $4.6 billion inflows, closely followed by $2.7 billion in international equity ETFs and $2.5 billion in U.S. equity ETFs, per etf.com. However, U.S. equities have dominated the list of top asset flow creators.
We have highlighted the top five funds that could continue to gain investors’ interest should the current market trends prevail:
QQQ topped asset flow creation last week, gathering $1.4 billion in capital. 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 49.1% 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 $189.7 billion and an average daily volume of 32.2 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Nasdaq Tops 15K for First Time: 5 Best Stocks in the ETF).
This fund has accumulated $1.1 billion in capital, taking its total AUM to $270.5 billion. It provides exposure to the broader 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 3.2 million shares. VTI has a Zacks ETF Rank #2 with a Medium risk outlook.
IVV has gathered $848 million in capital last week. It tracks the S&P 500 Index and holds 505 stocks in its basket with information technology, healthcare, consumer discretionary, communications and financials sectors being the top five with a double-digit allocation each. The ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4 million shares. It has AUM of $303 billion and has a Zacks ETF Rank #2 with a Medium risk outlook.
VOO has accumulated more than $780 million, taking its total AUM to $252.8 billion. It also tracks the S&P 500 Index and holds 507 stocks in its basket with information technology, healthcare, consumer discretionary, communication services and financials being the top five, with a double-digit allocation each. The ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.5 million shares. It has a Zacks ETF Rank #2 with a Medium risk outlook (read: Guide to the S&P 500 ETF Investing).
This fund gathered around $638 million in its asset base last week. This product provides concentrated exposure to the Chinese Internet market by tracking the CSI China Overseas Internet Index. In total, the fund holds 52 securities in its basket with some concentration on the top firm. The ETF has amassed $6.5 billion in its asset base and charges 73 bps in annual fees from investors. It has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook (read: Should You Buy China Tech Stocks & ETFs Now?).
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5 Most-Loved ETFs of Last Week
Wall Street had a great ride last week with all the three major indices closing in green. The tech-heavy Nasdaq Composite Index topped 15,000 for the first-time ever and climbed 2.8% while the S&P 500 and Dow Jones gained 1.5% and 0.9%, respectively.
Renewed optimism over the global economic recovery after the first full U.S. approval of a COVID-19 vaccine made by Pfizer (PFE - Free Report) and BioNTech bolstered risk-on trade. This is because the full approval will help put brakes on the ongoing surge in COVID-19 Delta variant cases and lead to continued reopening of the economy. Additionally, strong corporate profit growth and ultra-easy monetary policies remain the major catalysts (read: ETFs to Rise on Full FDA Approval for Pfizer COVID-19 Vaccine).
Further, a surge in Chinese technology stocks after many weeks of sell-off brought about by Beijing’s regulatory crackdown added to the strength. Excellent results reported by JD.com (JD - Free Report) and Pinduoduo (PDD - Free Report) , as well as the share buyback announcement by Tencent (TCEHY - Free Report) led the rebound.
The Fed’s dovish stance also supported the rally to end the week. Chairman Jerome Powell in the Jackson Hole conference stated that the central bank is in no hurry to raise interest rates though it will gradually begin tapering $120 billion in monthly bond purchases by the end of the year.
Given this, ETFs overall gathered about $8.5 billion capital last week (ending Aug 26), bringing inflows of $569.6 billion year to date. U.S. fixed income ETFs led the way higher last week with $4.6 billion inflows, closely followed by $2.7 billion in international equity ETFs and $2.5 billion in U.S. equity ETFs, per etf.com. However, U.S. equities have dominated the list of top asset flow creators.
We have highlighted the top five funds that could continue to gain investors’ interest should the current market trends prevail:
Invesco QQQ (QQQ - Free Report)
QQQ topped asset flow creation last week, gathering $1.4 billion in capital. 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 49.1% 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 $189.7 billion and an average daily volume of 32.2 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Nasdaq Tops 15K for First Time: 5 Best Stocks in the ETF).
Vanguard Total Stock Market ETF (VTI - Free Report)
This fund has accumulated $1.1 billion in capital, taking its total AUM to $270.5 billion. It provides exposure to the broader 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 3.2 million shares. VTI has a Zacks ETF Rank #2 with a Medium risk outlook.
iShares Core S&P 500 ETF (IVV - Free Report)
IVV has gathered $848 million in capital last week. It tracks the S&P 500 Index and holds 505 stocks in its basket with information technology, healthcare, consumer discretionary, communications and financials sectors being the top five with a double-digit allocation each. The ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4 million shares. It has AUM of $303 billion and has a Zacks ETF Rank #2 with a Medium risk outlook.
Vanguard S&P 500 ETF (VOO - Free Report)
VOO has accumulated more than $780 million, taking its total AUM to $252.8 billion. It also tracks the S&P 500 Index and holds 507 stocks in its basket with information technology, healthcare, consumer discretionary, communication services and financials being the top five, with a double-digit allocation each. The ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.5 million shares. It has a Zacks ETF Rank #2 with a Medium risk outlook (read: Guide to the S&P 500 ETF Investing).
KraneShares CSI China Internet Fund (KWEB - Free Report)
This fund gathered around $638 million in its asset base last week. This product provides concentrated exposure to the Chinese Internet market by tracking the CSI China Overseas Internet Index. In total, the fund holds 52 securities in its basket with some concentration on the top firm. The ETF has amassed $6.5 billion in its asset base and charges 73 bps in annual fees from investors. It has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook (read: Should You Buy China Tech Stocks & ETFs Now?).