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Broad equity ETFs continued their hot streak, pulling in the highest capital inflow last week despite the inflation concerns. This is especially true as ETFs overall gathered about $22.6 billion capital last week (ending Nov 11), bringing in inflows of $761.7 billion year to date. U.S. equity ETFs led the way higher last week with $11.3 billion inflows, closely followed by $7 billion in U.S. fixed-income ETFs and $3.8 billion in international equity ETFs, per etf.com.
Vanguard S&P 500 ETF (VOO - Free Report) , Invesco QQQ Trust (QQQ - Free Report) , iShares iBoxx USD High Yield Corporate Bond ETF (HYG - Free Report) , Nuveen Growth Opportunities ETF (NUGO - Free Report) and iShares Russell 2000 ETF (IWM - Free Report) dominated the top creation list last week.
Stock Market Synopsys
Wall Street logged in the first weekly loss in six weeks. The S&P 500 and Dow Jones lost 0.3% and 0.6%, respectively, while the Nasdaq Composite shed 0.7%. The consumer price index rose 6.2% year over year in October, the highest since December 1990 and exceeded the 5.4% year-over-year rise in September. Consumer sentiment in early November dropped to its lowest level in a decade, according to the University of Michigan (read: U.S. Inflation at a 30-Year High: 5 Sector ETFs to Win).
However, a spate of solid earnings beat pushed the S&P 500 to close above the 4,700 milestone for the first time ever. Q3 earnings from 460 S&P 500 members that have reported so far are up 43.1% from the same period last year on 18.6% lower revenues, with 79.3% beating EPS estimates and 74.3% beating revenue estimates.
Earnings and revenue growth rates have fallen in the ongoing Q3 earnings season from the first-half’s breakneck speed but are still elevated. Aggregate Q3 earnings for the S&P 500 Index are on track to reach a new all-time quarterly record, surpassing the record set in the preceding quarter.
We have detailed the ETFs below:
Vanguard S&P 500 ETF
Vanguard S&P 500 ETF topped asset flow creation last week, gathering $1.6 billion in capital. It tracks the S&P 500 Index and holds 511 stocks in its basket with each accounting for more than 6.04% of assets. VOO is heavy on the information technology sector while healthcare, consumer discretionary, financials and communication services round off its next four spots with a double-digit allocation each.
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4.5 million shares. It has AUM of $273.3 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Invesco QQQ Trust
Invesco QQQ gathered around $1.3 billion in its asset base last week. QQQ provides exposure to the 102 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is heavily concentrated on the top two firms with a double-digit allocation while its other firms hold no more than 7.6% of assets. The product is also heavily tilted toward information technology at 49.9% while communication services and consumer discretionary round off the next two spots (read: 5 ETFs Sizzling to Start November).
Invesco QQQ is one of the largest and most-popular ETFs in the large-cap space with an AUM of $207.7 billion and an average daily volume of 40.2 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
iShares iBoxx USD High Yield Corporate Bond ETF
iShares iBoxx $ High Yield Corporate Bond ETF has accumulated $1.2 billion in capital. HYG offers exposure to a broad range of U.S. high-yield corporate bonds by tracking the Markit iBoxx USD Liquid High Yield Index. iShares iBoxx $ High Yield Corporate Bond ETF holds 1,343 securities with effective duration and average maturity come in at 3.73 years and 4.10 years, respectively.
iShares iBoxx $ High Yield Corporate Bond ETF is one of the most widely used high-yield bond ETFs with AUM of $20.3 billion and an average daily volume of 22.8 million shares. HYG charges 48 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Junk Bonds Back in Fashion: 5 ETFs to Play the Trend).
Nuveen Growth Opportunities ETF
Nuveen Growth Opportunities ETF seeks long-term capital appreciation through a concentrated growth portfolio that primarily invests in U.S. companies with market capitalization of at least $1 billion. NUGO offers exposure to high-quality companies that exhibit potential for attractive earnings growth, strong relative valuation, attractive cash flows and significant long-term returns. Nuveen Growth Opportunities ETF holds 51 stocks in its basket with double-digit allocation to the top firms while other firms account for no more than 7% of assets.
Nuveen Growth Opportunities ETF saw inflows of more than $1 billion last week, propelling its asset base to $2.9 billion. Also, NUGO is a new entrant in the space, having debuted in late September. Nuveen Growth Opportunities ETF charges 55 bps in annual fees and trades in average daily volume of 6,000 shares.
iShares Russell 2000 ETF
iShares Russell 2000 ETF accumulated around $967 million in its asset base last week. IWM is the largest and most popular ETF in the small-cap space with AUM of $74.2 billion and an average daily volume of 25.1 million shares. iShares Russell 2000 ETF holds well-diversified 2,022 stocks in its basket and has key holdings in healthcare, financials, industrials, information technology and consumer discretionary.
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Equity ETFs Sizzle Last Week Amid Inflation Fears
Broad equity ETFs continued their hot streak, pulling in the highest capital inflow last week despite the inflation concerns. This is especially true as ETFs overall gathered about $22.6 billion capital last week (ending Nov 11), bringing in inflows of $761.7 billion year to date. U.S. equity ETFs led the way higher last week with $11.3 billion inflows, closely followed by $7 billion in U.S. fixed-income ETFs and $3.8 billion in international equity ETFs, per etf.com.
Vanguard S&P 500 ETF (VOO - Free Report) , Invesco QQQ Trust (QQQ - Free Report) , iShares iBoxx USD High Yield Corporate Bond ETF (HYG - Free Report) , Nuveen Growth Opportunities ETF (NUGO - Free Report) and iShares Russell 2000 ETF (IWM - Free Report) dominated the top creation list last week.
Stock Market Synopsys
Wall Street logged in the first weekly loss in six weeks. The S&P 500 and Dow Jones lost 0.3% and 0.6%, respectively, while the Nasdaq Composite shed 0.7%. The consumer price index rose 6.2% year over year in October, the highest since December 1990 and exceeded the 5.4% year-over-year rise in September. Consumer sentiment in early November dropped to its lowest level in a decade, according to the University of Michigan (read: U.S. Inflation at a 30-Year High: 5 Sector ETFs to Win).
However, a spate of solid earnings beat pushed the S&P 500 to close above the 4,700 milestone for the first time ever. Q3 earnings from 460 S&P 500 members that have reported so far are up 43.1% from the same period last year on 18.6% lower revenues, with 79.3% beating EPS estimates and 74.3% beating revenue estimates.
Earnings and revenue growth rates have fallen in the ongoing Q3 earnings season from the first-half’s breakneck speed but are still elevated. Aggregate Q3 earnings for the S&P 500 Index are on track to reach a new all-time quarterly record, surpassing the record set in the preceding quarter.
We have detailed the ETFs below:
Vanguard S&P 500 ETF
Vanguard S&P 500 ETF topped asset flow creation last week, gathering $1.6 billion in capital. It tracks the S&P 500 Index and holds 511 stocks in its basket with each accounting for more than 6.04% of assets. VOO is heavy on the information technology sector while healthcare, consumer discretionary, financials and communication services round off its next four spots with a double-digit allocation each.
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4.5 million shares. It has AUM of $273.3 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Invesco QQQ Trust
Invesco QQQ gathered around $1.3 billion in its asset base last week. QQQ provides exposure to the 102 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is heavily concentrated on the top two firms with a double-digit allocation while its other firms hold no more than 7.6% of assets. The product is also heavily tilted toward information technology at 49.9% while communication services and consumer discretionary round off the next two spots (read: 5 ETFs Sizzling to Start November).
Invesco QQQ is one of the largest and most-popular ETFs in the large-cap space with an AUM of $207.7 billion and an average daily volume of 40.2 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
iShares iBoxx USD High Yield Corporate Bond ETF
iShares iBoxx $ High Yield Corporate Bond ETF has accumulated $1.2 billion in capital. HYG offers exposure to a broad range of U.S. high-yield corporate bonds by tracking the Markit iBoxx USD Liquid High Yield Index. iShares iBoxx $ High Yield Corporate Bond ETF holds 1,343 securities with effective duration and average maturity come in at 3.73 years and 4.10 years, respectively.
iShares iBoxx $ High Yield Corporate Bond ETF is one of the most widely used high-yield bond ETFs with AUM of $20.3 billion and an average daily volume of 22.8 million shares. HYG charges 48 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Junk Bonds Back in Fashion: 5 ETFs to Play the Trend).
Nuveen Growth Opportunities ETF
Nuveen Growth Opportunities ETF seeks long-term capital appreciation through a concentrated growth portfolio that primarily invests in U.S. companies with market capitalization of at least $1 billion. NUGO offers exposure to high-quality companies that exhibit potential for attractive earnings growth, strong relative valuation, attractive cash flows and significant long-term returns. Nuveen Growth Opportunities ETF holds 51 stocks in its basket with double-digit allocation to the top firms while other firms account for no more than 7% of assets.
Nuveen Growth Opportunities ETF saw inflows of more than $1 billion last week, propelling its asset base to $2.9 billion. Also, NUGO is a new entrant in the space, having debuted in late September. Nuveen Growth Opportunities ETF charges 55 bps in annual fees and trades in average daily volume of 6,000 shares.
iShares Russell 2000 ETF
iShares Russell 2000 ETF accumulated around $967 million in its asset base last week. IWM is the largest and most popular ETF in the small-cap space with AUM of $74.2 billion and an average daily volume of 25.1 million shares. iShares Russell 2000 ETF holds well-diversified 2,022 stocks in its basket and has key holdings in healthcare, financials, industrials, information technology and consumer discretionary.
iShares Russell 2000 ETF charges 19 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: 4 ETFs to Benefit From Strengthening Dollar).