February was pretty volatile for Wall Street. Though the start of the month was rocky due to rising rate worries and the Russia-Ukraine conflict, investors digested those threats somewhat at the end of the month. Plus, geopolitical crisis boosted safe-haven assets like U.S. treasuries, which in turn weighed on long-term treasury yields. This benefited stocks somewhat.
Overall, the S&P 500 (down 3.1%), the Nasdaq Composite (down 3.43%) and the Dow Jones (down 3.5%) recorded losses. Only the small-cap Russell 2000 (up 0.97%) managed to remain in the green. With Russia-Ukraine war taking an ugly turn, things will likely remain volatile in March as Western sanctions turned harsh to close out February. Plus, the Fed is highly likely to hike rates this month.
Though rate hike move is already baked in the current valuation, the Fed’s rhetoric will play a crucial in regulating the market. Against this backdrop, below we highlight the asset report of February.
S&P 500 Top Favorite Vanguard S&P 500 ETF ( VOO Quick Quote VOO - Free Report) and iShares Core S&P 500 ETF ( IVV Quick Quote IVV - Free Report) amassed about $16.34 billion and $9.05 billion in assets in February. Though the broader market was downbeat, equity investors brushed aside uncertainties. Nasdaq ETF Investors’ Darling Too ProShares UltraPro QQQ ( TQQQ Quick Quote TQQQ - Free Report) garnered about $1.45 billion in assets in February. The Nasdaq, heavy on technology and growth stocks, have been suffering from rising rate worries. But here again, investors preferred to pour assets in the beaten-down Nasdaq ETF. Plus, the index found a reason for a respite in February as rise in rates slowed down a bit due to geopolitical tensions. Bond Market Were on Tear Too iShares Short Treasury Bond ETF ( SHV Quick Quote SHV - Free Report) and Vanguard Short-Term Corporate Bond ETF ( VCSH Quick Quote VCSH - Free Report) attracted about $2.33 billion and $1.65 billion in assets. Vanguard Intermediate-Term Corporate Bond ETF ( VCIT Quick Quote VCIT - Free Report) too added about $1.79 billion in assets while Vanguard Total International Bond ETF ( BNDX Quick Quote BNDX - Free Report) hauled in about $1.52 billion in assets. While a decline in rates due to geopolitics helped the bond investing in the month, short term U.S. bonds gained more assets as the Fed rate hike worries are looming large. Value & Dividend Investors’ Favorite Vanguard Value ETF ( VTV Quick Quote VTV - Free Report) and Schwab U.S. Dividend Equity ETF ( SCHD Quick Quote SCHD - Free Report) attracted about $5.93 billion and $2.64 billion in assets in February, respectively. Amid heightened of uncertainties, investors took shelter in the dividend and value investing. The high dividend yield of SCHD (about 2.97% annually) proved lucrative to investors. GLDM Saw Assets Fleeing
Gold bullion ETF
SPDR Gold MiniShares Trust ( GLDM Quick Quote GLDM - Free Report) saw about $2.28 billion in assets gushing out of the fund. Notably, gold was steady in the month as its safe-haven appeal brightened due to the geopolitics. TIPS to Underperformed Schwab U.S. TIPS ETF ( SCHP Quick Quote SCHP - Free Report) and Vanguard Short-Term Inflation-Protected Securities ETF ( VTIP Quick Quote VTIP - Free Report) lost about $1.05 billion and $940 million in assets, respectively, despite a surge in inflation. Investors probably found other inflation-beating avenues like commodity investing more lucrative.