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After topsy-turvy trading, Wall Street ended the last week with a slight increase. The Dow Jones and the S&P 500 was up 0.6% and 0.5%, respectively while the Nasdaq Composite Index was flattish.
Concerns over the financial contagion of the potential failure of China’s Evergrande property group and the ongoing debates over the debt limit in Washington made investors jittery early last week. But these worries seemed to ease with China Evergrande’s deal to settle some of its looming debt payments as well as the House passing a bill to avert government shutdown.
Investors should note that the S&P 500 Index logged in its worst day on Sep 20 since May 12 after three consecutive weekly declines. The Fed’s signal of no imminent removal of its ultra-easy monetary policy anytime soon rekindled investors’ interest at the end of the week. However, a crackdown on bitcoin by China also hurt market sentiment to end the week, leading to a sell-off in technology shares that depend on crypto-related revenues (read: ETFs to Ride the Current Market Rally Post Fed's Meeting).
Given this, overall ETFs saw outflows of more than $29.6 billion for the week (Sep 17-Sep 23), with approximately $27.5 billion in outflows on Monday alone, according to ETF.com. In total, U.S. equity ETFs pulled out $36.5 billion outflows while U.S. fixed income ETFs gathered around $4.6 billion in assets followed by $909 million in international equity ETFs.
We have highlighted five ETFs that took charge last week and will continue to be investors’ favorites should the current market trends prevail:
IWM topped asset flow creation last week, gathering $2.2 billion in capital. It is the largest and the most-popular ETF in the small-cap space with AUM of $67 billion and holding well-diversified 2,036 stocks in its basket. The fund has key holdings in healthcare, financials, information technology, industrials, and consumer discretionary. It charges 19 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
VOO has accumulated $1.7 billion, taking its total AUM to $252.7 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 (Buy) with a Medium risk outlook.
This ETF has gathered $1.1 billion in capital last week. It offers thrice the returns of its daily performance of the NASDAQ-100 Index, charging 95 bps in annual fees. The fund has amassed $15.1 billion in AUM and trades in a heavy volume of 27.3 million shares, on average (read: Guide to the Nasdaq ETF Investing).
This ETF accumulated about $583 million last week, taking its total AUM to $42 billion. It offers diversified exposure to the short-term, investment-grade U.S. bond market by tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. It is home to 2,654 stocks with effective maturity of 2.9 years and average duration of 2.8 years. The fund charges 6 bps in annual fees (read: 4 Bond ETFs to Play If Rates Rise).
This fund has gathered $443 million in capital last week. It targets mid-cap U.S. Treasury bonds and tracks the IDC US Treasury 7-10 Year Index. With AUM of $13.8 billion, the fund holds 14 bonds in its basket with effective maturity of 8.57 years and average duration of 8.02 years. The product charges investors 15 bps in fees per year and has a Zacks ETF Rank #3 with a High risk outlook.
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5 ETFs That Sizzled Last Week Amid Market Rout
After topsy-turvy trading, Wall Street ended the last week with a slight increase. The Dow Jones and the S&P 500 was up 0.6% and 0.5%, respectively while the Nasdaq Composite Index was flattish.
Concerns over the financial contagion of the potential failure of China’s Evergrande property group and the ongoing debates over the debt limit in Washington made investors jittery early last week. But these worries seemed to ease with China Evergrande’s deal to settle some of its looming debt payments as well as the House passing a bill to avert government shutdown.
Investors should note that the S&P 500 Index logged in its worst day on Sep 20 since May 12 after three consecutive weekly declines. The Fed’s signal of no imminent removal of its ultra-easy monetary policy anytime soon rekindled investors’ interest at the end of the week. However, a crackdown on bitcoin by China also hurt market sentiment to end the week, leading to a sell-off in technology shares that depend on crypto-related revenues (read: ETFs to Ride the Current Market Rally Post Fed's Meeting).
Given this, overall ETFs saw outflows of more than $29.6 billion for the week (Sep 17-Sep 23), with approximately $27.5 billion in outflows on Monday alone, according to ETF.com. In total, U.S. equity ETFs pulled out $36.5 billion outflows while U.S. fixed income ETFs gathered around $4.6 billion in assets followed by $909 million in international equity ETFs.
We have highlighted five ETFs that took charge last week and will continue to be investors’ favorites should the current market trends prevail:
iShares Russell 2000 ETF (IWM - Free Report)
IWM topped asset flow creation last week, gathering $2.2 billion in capital. It is the largest and the most-popular ETF in the small-cap space with AUM of $67 billion and holding well-diversified 2,036 stocks in its basket. The fund has key holdings in healthcare, financials, information technology, industrials, and consumer discretionary. It charges 19 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard S&P 500 ETF (VOO - Free Report)
VOO has accumulated $1.7 billion, taking its total AUM to $252.7 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 (Buy) with a Medium risk outlook.
ProShares UltraPro QQQ (TQQQ - Free Report)
This ETF has gathered $1.1 billion in capital last week. It offers thrice the returns of its daily performance of the NASDAQ-100 Index, charging 95 bps in annual fees. The fund has amassed $15.1 billion in AUM and trades in a heavy volume of 27.3 million shares, on average (read: Guide to the Nasdaq ETF Investing).
Vanguard Short-Term Bond ETF (BSV - Free Report)
This ETF accumulated about $583 million last week, taking its total AUM to $42 billion. It offers diversified exposure to the short-term, investment-grade U.S. bond market by tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. It is home to 2,654 stocks with effective maturity of 2.9 years and average duration of 2.8 years. The fund charges 6 bps in annual fees (read: 4 Bond ETFs to Play If Rates Rise).
iShares 7-10 Year Treasury Bond ETF (IEF - Free Report)
This fund has gathered $443 million in capital last week. It targets mid-cap U.S. Treasury bonds and tracks the IDC US Treasury 7-10 Year Index. With AUM of $13.8 billion, the fund holds 14 bonds in its basket with effective maturity of 8.57 years and average duration of 8.02 years. The product charges investors 15 bps in fees per year and has a Zacks ETF Rank #3 with a High risk outlook.