We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. Equity Dominates Last Week's Asset Flow: 5 Hot ETFs
Read MoreHide Full Article
After rallying for most of last week, Wall Street saw volatile trade to end the week on disappointing job data. The U.S. economy added just 235,000 jobs in August, much lower than the 720,000 new jobs economists were expecting, according to Bloomberg data, and marks a significant decline from 930,000 jobs added back in July.
The data represents the worst monthly job increase since January as rising COVID-19 cases have raised fears over a sustained economic recovery. Notably, the Dow Jones was flat while the S&P 500 and the Nasdaq Composite Index were higher last week.
Although weaker-than-expected jobs data took a toll on investor sentiment, it seems short-lived as it would put pressure on the Fed’s plan to scale back its monthly bond purchase program providing a boost to the stocks. Additionally, renewed buying in the high-growth tech giants fueled strength (read: 5 Tech Stocks Leading the Latest Nasdaq ETF Rally).
Given this, ETFs overall gathered about $22.4 billion capital last week (ending Sep 2), bringing in inflows of more than $600 billion year to date. U.S. equity ETFs led the way higher last week with $15.5 billion inflows, closely followed by $3.7 billion in U.S. fixed income ETFs and $3.7 billion in U.S. equity ETFs, per etf.com.
Given this, we have highlighted five funds that dominated the top U.S. equity creation list last week and can continue to be investors’ darlings:
SPY topped asset flow creation last week, gathering $5.1 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket with information technology, healthcare, consumer discretionary, communication services and financials being the top five, with a double-digit allocation each. With AUM of $401.8 billion, the ETF charges investors 9 bps in annual fees and trades in an average daily volume of 54.1 million shares. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
This ETF has gathered around $3.8 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 48.9% 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 $196.6 billion and an average daily volume of 32 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 with a Medium risk outlook (read: Join the Nasdaq Rally With These ETFs).
VOO has accumulated $1.1 billion, taking its total AUM to $256.1 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 3.7 million shares. It has a Zacks ETF Rank #2 with a Medium risk outlook (read: What Awaits the S&P 500 ETFs After the Best YTD Rally Since 1997?).
IVV gathered $904.6 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 $305.9 billion and has a Zacks ETF Rank #2 with a Medium risk outlook.
IWM accumulated around $763 million in its asset base last week. It is the largest and most-popular ETFs in the small-cap space with AUM of $68.8 billion and holding well-diversified 1,978 stocks in its basket. The fund has key holdings in healthcare, financials, industrials, information technology and consumer discretionary. It charges 19 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
U.S. Equity Dominates Last Week's Asset Flow: 5 Hot ETFs
After rallying for most of last week, Wall Street saw volatile trade to end the week on disappointing job data. The U.S. economy added just 235,000 jobs in August, much lower than the 720,000 new jobs economists were expecting, according to Bloomberg data, and marks a significant decline from 930,000 jobs added back in July.
The data represents the worst monthly job increase since January as rising COVID-19 cases have raised fears over a sustained economic recovery. Notably, the Dow Jones was flat while the S&P 500 and the Nasdaq Composite Index were higher last week.
Although weaker-than-expected jobs data took a toll on investor sentiment, it seems short-lived as it would put pressure on the Fed’s plan to scale back its monthly bond purchase program providing a boost to the stocks. Additionally, renewed buying in the high-growth tech giants fueled strength (read: 5 Tech Stocks Leading the Latest Nasdaq ETF Rally).
Given this, ETFs overall gathered about $22.4 billion capital last week (ending Sep 2), bringing in inflows of more than $600 billion year to date. U.S. equity ETFs led the way higher last week with $15.5 billion inflows, closely followed by $3.7 billion in U.S. fixed income ETFs and $3.7 billion in U.S. equity ETFs, per etf.com.
Given this, we have highlighted five funds that dominated the top U.S. equity creation list last week and can continue to be investors’ darlings:
SPDR S&P 500 ETF Trust (SPY - Free Report)
SPY topped asset flow creation last week, gathering $5.1 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket with information technology, healthcare, consumer discretionary, communication services and financials being the top five, with a double-digit allocation each. With AUM of $401.8 billion, the ETF charges investors 9 bps in annual fees and trades in an average daily volume of 54.1 million shares. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Invesco QQQ (QQQ - Free Report)
This ETF has gathered around $3.8 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 48.9% 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 $196.6 billion and an average daily volume of 32 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 with a Medium risk outlook (read: Join the Nasdaq Rally With These ETFs).
Vanguard S&P 500 ETF (VOO - Free Report)
VOO has accumulated $1.1 billion, taking its total AUM to $256.1 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 3.7 million shares. It has a Zacks ETF Rank #2 with a Medium risk outlook (read: What Awaits the S&P 500 ETFs After the Best YTD Rally Since 1997?).
iShares Core S&P 500 ETF (IVV - Free Report)
IVV gathered $904.6 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 $305.9 billion and has a Zacks ETF Rank #2 with a Medium risk outlook.
iShares Russell 2000 ETF (IWM - Free Report)
IWM accumulated around $763 million in its asset base last week. It is the largest and most-popular ETFs in the small-cap space with AUM of $68.8 billion and holding well-diversified 1,978 stocks in its basket. The fund has key holdings in healthcare, financials, industrials, information technology and consumer discretionary. It charges 19 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.