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ETF Asset Report of November: S&P 500 Wins

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Wall Street was on a topsy-turvy ride in the month of November. While the start of the month was decent, renewed virus scare and lockdowns weighed on the broader market at the end. Overall, the S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 lost about 1.4%, 4.4%, 0.7% and 6.9%, respectively, past month.

COVID-19 lockdowns in Europe in late November stirred up fears of further spread of infections. While this raised chances of another wave of COVID-19 in other parts of the world, the finding of a new COVID-19 variant, namely Omicron, led to a massive crash in Wall Street at month-end. 

Meanwhile, the Fed has started QE tapering from November and corporate earnings came in upbeat. Holiday sales are forecast to be solid in 2021. Retail sales for the month of October were strong. Inflation data too were high due to supply-chain issues. Oil prices staged a rally in November on the prospect of higher demand but nosedived in the Thanksgiving week along with Wall Street on Omicron fears.

Against this backdrop, below we highlight the ETFs that attracted maximum assets from Nov 1 to Nov 29.

S&P 500 & Total Market Win

iShares Core S&P 500 ETF (IVV - Free Report) ,Vanguard S&P 500 ETF (VOO - Free Report) and Vanguard Total Stock Market ETF (VTI - Free Report) amassed about $3.80 billion and $3.56 billion in assets in November. The broader market was mostly upbeat, apart from the Omicron-induced market crash at month-end.

Quality ETF Catches Investors’ Attention

iShares MSCI USA Quality Factor ETF (QUAL - Free Report) garneredabout $3.53 billion in November. The volatile nature of Wall Street probably led investors toward quality picks.

TIPS Win Too

Global inflationary pressure is proving to be too heavy to handle. The annual inflation rate in the United States surged to 6.2% in October 2021, the highest since November 1990 and above forecasts of 5.8%. No wonder, investors will flock to TIPS ETFs.

TIPS ETFs offer robust real returns during inflationary periods unlike its unprotected peers in the fixed-income world. These securities pay an interest on an inflated-principal amount (principal rises with inflation) and when the securities mature, investors get either the inflation-adjusted principal or the original principal, whichever is greater. As a result, both principal amount and interest payments will keep on increasing with rising consumer prices. iShares TIPS Bond ETF (TIP - Free Report) hauled in about $1.67 billion in assets.

Developed Markets In Favor

iShares Core MSCI EAFE ETF (IEFA - Free Report) and Vanguard FTSE Developed Markets ETF (VEA - Free Report) amassed about $1.65 billion and $1.63 billion in assets in November, respectively.

Large-Cap Growth ETFs Lost Assets

iShares Russell 1000 Growth ETF (IWF - Free Report) lost about $1.44 billion in the month. Rising rate worries probably weighed on the assets of the fund.