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Overall ETFs pulled in $197.3 billion capital in the first quarter. U.S. equity ETFs led the way higher last week with $99.2 billion inflows, closely followed by $45.6 billion in international equity ETFs and $18.8 billion in commodity ETFs, per etf.com.
Wall Street logged its worst performance in two years with the Dow Jones and the S&P 500 losing 4.6% and 4.9%, respectively. The Nasdaq Composite Index shed 9% in the first quarter. The combination of factors like the start of a rate hike cycle, skyrocketing inflation and Russia’s invasion of Ukraine led to risk-off trade in the quarter.
On the other hand, commodities continued their hot streak and wrapped up their best quarter in more than 30 years. The ongoing Russia-Ukraine war has led to supply-disruption fears in an already-tight commodity market, thereby resulting in shortage of food and energy. Inflation has been flaring up due to higher energy and food prices.
In the fixed income world, the U.S. Treasury bond yield curve inverted for the first time in three years, signaling U.S. recession. This means that the yield on the two-year Treasury note was higher than that of the 10-year note. The curve is flattening as investors are betting on faster and deeper Federal Reserve rate hikes while at the same time worrying about near-term growth prospects in the world's biggest economy (read: 5 ETFs to Add As Yield Curve Signals Recession).
Vanguard S&P 500 ETF topped asset flow creation last year, gathering $24.9 billion in capital. It tracks the S&P 500 Index and holds 507 stocks in its basket, each accounting for no more than 7% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while healthcare, consumer discretionary, and financials 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 7.6 million shares. It has AUM of $297.4 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares Core S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 8 million shares. It has AUM of $338 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Value ETF has accumulated about $9.4 billion in its asset base in the first quarter. It targets the value segment of the broad U.S. stock market and follows the CRSP US Large Cap Value Index. The product holds 349 stocks in its basket, with each accounting for no more than 3% of the assets.
Vanguard Value ETF has AUM of $104 billion and charges 4 bps in annual fees. The product trades in volume of 4 million shares per day on average and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Vanguard Total Stock Market ETF gathered $8.7 billion in capital, taking its total AUM to $297.4 billion. It provides exposure to the broader stock market by tracking the CRSP US Total Market Index. Vanguard Total Stock Market ETF holds a large basket of well-diversified 4,070 stocks with key holdings in technology, consumer discretionary, industrials, healthcare and financials.
Vanguard Total Stock Market ETF charges 3 bps in fees per year from investors and trades in an average daily volume of 5 million shares. VTI has a Zacks ETF Rank #2 with a Medium risk outlook.
SPDR Gold Trust ETF pulled in $7.1 billion in its asset base. It tracks the price of gold bullion measured in U.S. dollars, and kept in London under the custody of HSBC Bank USA. SPDR Gold Trust ETF is an ultra-popular gold ETF with AUM of $67.8 billion and heavy volume of about 14 million shares a day (read: Best ETF Investment Strategies for Q2 2022).
SPDR Gold Trust ETF charges 40 bps in fees per year from investors and has a Zacks ETF Rank #3 with a Medium risk outlook.
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5 ETFs That Gained Investors' Love in Q1
Overall ETFs pulled in $197.3 billion capital in the first quarter. U.S. equity ETFs led the way higher last week with $99.2 billion inflows, closely followed by $45.6 billion in international equity ETFs and $18.8 billion in commodity ETFs, per etf.com.
Vanguard S&P 500 ETF (VOO - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) , Vanguard Value ETF (VTV - Free Report) , Vanguard Total Stock Market ETF (VTI - Free Report) and SPDR Gold Trust ETF (GLD - Free Report) dominated the top creation list last week.
Wall Street logged its worst performance in two years with the Dow Jones and the S&P 500 losing 4.6% and 4.9%, respectively. The Nasdaq Composite Index shed 9% in the first quarter. The combination of factors like the start of a rate hike cycle, skyrocketing inflation and Russia’s invasion of Ukraine led to risk-off trade in the quarter.
On the other hand, commodities continued their hot streak and wrapped up their best quarter in more than 30 years. The ongoing Russia-Ukraine war has led to supply-disruption fears in an already-tight commodity market, thereby resulting in shortage of food and energy. Inflation has been flaring up due to higher energy and food prices.
In the fixed income world, the U.S. Treasury bond yield curve inverted for the first time in three years, signaling U.S. recession. This means that the yield on the two-year Treasury note was higher than that of the 10-year note. The curve is flattening as investors are betting on faster and deeper Federal Reserve rate hikes while at the same time worrying about near-term growth prospects in the world's biggest economy (read: 5 ETFs to Add As Yield Curve Signals Recession).
Let’s delve into the five ETFs in detail below:
Vanguard S&P 500 ETF (VOO - Free Report)
Vanguard S&P 500 ETF topped asset flow creation last year, gathering $24.9 billion in capital. It tracks the S&P 500 Index and holds 507 stocks in its basket, each accounting for no more than 7% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while healthcare, consumer discretionary, and financials 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 7.6 million shares. It has AUM of $297.4 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares Core S&P 500 ETF (IVV - Free Report)
iShares Core S&P 500 ETF pulled in $14.1 billion in capital. It also tracks the S&P 500 Index and holds 506 stocks in its basket (read: U.S. Stocks Log Worst Q1 in 2 Years: Top-Ranked ETFs Shine).
iShares Core S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 8 million shares. It has AUM of $338 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Value ETF (VTV - Free Report)
Vanguard Value ETF has accumulated about $9.4 billion in its asset base in the first quarter. It targets the value segment of the broad U.S. stock market and follows the CRSP US Large Cap Value Index. The product holds 349 stocks in its basket, with each accounting for no more than 3% of the assets.
Vanguard Value ETF has AUM of $104 billion and charges 4 bps in annual fees. The product trades in volume of 4 million shares per day on average and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Vanguard Total Stock Market ETF (VTI - Free Report)
Vanguard Total Stock Market ETF gathered $8.7 billion in capital, taking its total AUM to $297.4 billion. It provides exposure to the broader stock market by tracking the CRSP US Total Market Index. Vanguard Total Stock Market ETF holds a large basket of well-diversified 4,070 stocks with key holdings in technology, consumer discretionary, industrials, healthcare and financials.
Vanguard Total Stock Market ETF charges 3 bps in fees per year from investors and trades in an average daily volume of 5 million shares. VTI has a Zacks ETF Rank #2 with a Medium risk outlook.
SPDR Gold Trust ETF (GLD - Free Report)
SPDR Gold Trust ETF pulled in $7.1 billion in its asset base. It tracks the price of gold bullion measured in U.S. dollars, and kept in London under the custody of HSBC Bank USA. SPDR Gold Trust ETF is an ultra-popular gold ETF with AUM of $67.8 billion and heavy volume of about 14 million shares a day (read: Best ETF Investment Strategies for Q2 2022).
SPDR Gold Trust ETF charges 40 bps in fees per year from investors and has a Zacks ETF Rank #3 with a Medium risk outlook.