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Overall, ETFs saw outflows for the second straight week ending Apr 14, shedding about $11.2 billion in capital. This represents the first time the industry posted two straight weeks of net outflows since late March 2020, pushing year-to-date inflows down to $187.6 billion.
U.S. equity ETFs led the way higher last week with $17.5 billion in outflows. However, international equity ETFs and commodities ETFs saw inflows of $3.1 billion and $1.4 billion, repsectively, per etf.com. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) , SPDR Bloomberg 1-3 Month T-Bill ETF (BIL - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) and Direxion Daily Semiconductor Bull 3x Shares (SOXL - Free Report) dominated the top creation list last week.
Stock Market Synopsys
Inflation is running red hot with no signs of cooling down, reflecting more aggressive Fed rate hikes. This is especially true as the consumer price index jumped 8.5% year over year in March, marking the biggest year-over-year increase since December 1981 (read: 5 ETFs to Make the Most of Red-Hot 40-Year High Inflation).
The impending monetary tightening from the Fed once again pulled growth stocks back into the red territory. The beaten-down prices provide a compelling entry point to investors, especially the semiconductor and technology stocks. Investors are betting that the semiconductor industry will rebound from the supply-chain hitches and chip shortages that have dragged the stocks lower.
The Fed has raised rates by 25 bps for the first time since 2008 and expects to follow a more aggressive path to fight the 40-year high inflation. The Fed is now expected to lift-off rates by 50 basis points at its May and June meetings to curb rapid inflation. Fed funds futures traders expect the Fed’s benchmark rate to increase to 1.28% in June and 2.67% next February from the current 0.33%.
iShares iBoxx $ Investment Grade Corporate Bond ETF topped asset flow creation last week, gathering $975.8 million in capital. It offers exposure to a broad range of U.S. investment grade corporate bonds by tracking the Markit iBoxx USD Liquid Investment Grade Index. iShares iBoxx $ Investment Grade Corporate Bond ETF holds 2,524 securities in its basket with an effective duration of 8.91 years and an average maturity of 13.44 years.
iShares iBoxx $ Investment Grade Corporate Bond ETF has AUM of $32.6 billion and trades in an average daily volume of 20.9 million shares. LQD charges 14 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High-risk outlook.
VanEck Vectors Semiconductor ETF has pulled in $883.2 million in capital, taking its total AUM to $8.2 billion. It provides exposure to 25 companies involved in semiconductor production and equipment by tracking the MVIS US Listed Semiconductor 25 Index. VanEck Vectors Semiconductor ETF charges 35 bps in annual fees and expenses.
VanEck Vectors Semiconductor ETF is heavily traded with a volume of around 8.2 million shares per day and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Semiconductor ETFs Enjoying Huge Investors Love).
SPDR Bloomberg 1-3 Month T-Bill ETF accumulated $749 million in capital. It seeks to provide exposure to zero coupon U.S. Treasury securities with remaining maturity of 1-3 months. It follows the Bloomberg 1-3 Month U.S. Treasury Bill Index, holding 14 securities in its basket. Both average maturity and adjusted duration come in at 0.11 years each.
SPDR Bloomberg 1-3 Month T-Bill ETF has AUM of $14.6 billion and an average daily volume of 3.5 million shares. It charges 14 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Information Technology ETF saw inflows of $687 million last week. It manages about $47.5 billion in its asset base and provides exposure to 357 technology stocks. Vanguard Information Technology ETF currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Technology Hardware, Storage & Peripheral takes the top spot at 24.1%, while systems software, semiconductors and application software round off the top three with double-digit exposure each.
Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 671,000 shares.
Direxion Daily Semiconductor Bull 3x Shares accumulated $578 million last week. It targets the semiconductor corner of the technology sector with three times leveraged exposure to the ICE Semiconductor Index (read: What Lies Ahead for Semiconductor ETFs in Q1 Earnings?).
Direxion Daily Semiconductor Bull 3x Shares has amassed about $5.3 billion in its asset base while charging 89 bps in fees per year. Volume is good as it exchanges 44.3 million shares per day on average.
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5 ETFs That Saw Inflows Last Week
Overall, ETFs saw outflows for the second straight week ending Apr 14, shedding about $11.2 billion in capital. This represents the first time the industry posted two straight weeks of net outflows since late March 2020, pushing year-to-date inflows down to $187.6 billion.
U.S. equity ETFs led the way higher last week with $17.5 billion in outflows. However, international equity ETFs and commodities ETFs saw inflows of $3.1 billion and $1.4 billion, repsectively, per etf.com. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) , SPDR Bloomberg 1-3 Month T-Bill ETF (BIL - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) and Direxion Daily Semiconductor Bull 3x Shares (SOXL - Free Report) dominated the top creation list last week.
Stock Market Synopsys
Inflation is running red hot with no signs of cooling down, reflecting more aggressive Fed rate hikes. This is especially true as the consumer price index jumped 8.5% year over year in March, marking the biggest year-over-year increase since December 1981 (read: 5 ETFs to Make the Most of Red-Hot 40-Year High Inflation).
The impending monetary tightening from the Fed once again pulled growth stocks back into the red territory. The beaten-down prices provide a compelling entry point to investors, especially the semiconductor and technology stocks. Investors are betting that the semiconductor industry will rebound from the supply-chain hitches and chip shortages that have dragged the stocks lower.
The Fed has raised rates by 25 bps for the first time since 2008 and expects to follow a more aggressive path to fight the 40-year high inflation. The Fed is now expected to lift-off rates by 50 basis points at its May and June meetings to curb rapid inflation. Fed funds futures traders expect the Fed’s benchmark rate to increase to 1.28% in June and 2.67% next February from the current 0.33%.
We have detailed the ETFs below:
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD - Free Report)
iShares iBoxx $ Investment Grade Corporate Bond ETF topped asset flow creation last week, gathering $975.8 million in capital. It offers exposure to a broad range of U.S. investment grade corporate bonds by tracking the Markit iBoxx USD Liquid Investment Grade Index. iShares iBoxx $ Investment Grade Corporate Bond ETF holds 2,524 securities in its basket with an effective duration of 8.91 years and an average maturity of 13.44 years.
iShares iBoxx $ Investment Grade Corporate Bond ETF has AUM of $32.6 billion and trades in an average daily volume of 20.9 million shares. LQD charges 14 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High-risk outlook.
VanEck Vectors Semiconductor ETF (SMH - Free Report)
VanEck Vectors Semiconductor ETF has pulled in $883.2 million in capital, taking its total AUM to $8.2 billion. It provides exposure to 25 companies involved in semiconductor production and equipment by tracking the MVIS US Listed Semiconductor 25 Index. VanEck Vectors Semiconductor ETF charges 35 bps in annual fees and expenses.
VanEck Vectors Semiconductor ETF is heavily traded with a volume of around 8.2 million shares per day and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Semiconductor ETFs Enjoying Huge Investors Love).
SPDR Bloomberg 1-3 Month T-Bill ETF (BIL - Free Report)
SPDR Bloomberg 1-3 Month T-Bill ETF accumulated $749 million in capital. It seeks to provide exposure to zero coupon U.S. Treasury securities with remaining maturity of 1-3 months. It follows the Bloomberg 1-3 Month U.S. Treasury Bill Index, holding 14 securities in its basket. Both average maturity and adjusted duration come in at 0.11 years each.
SPDR Bloomberg 1-3 Month T-Bill ETF has AUM of $14.6 billion and an average daily volume of 3.5 million shares. It charges 14 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Information Technology ETF (VGT - Free Report)
Vanguard Information Technology ETF saw inflows of $687 million last week. It manages about $47.5 billion in its asset base and provides exposure to 357 technology stocks. Vanguard Information Technology ETF currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Technology Hardware, Storage & Peripheral takes the top spot at 24.1%, while systems software, semiconductors and application software round off the top three with double-digit exposure each.
Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 671,000 shares.
Direxion Daily Semiconductor Bull 3x Shares (SOXL - Free Report)
Direxion Daily Semiconductor Bull 3x Shares accumulated $578 million last week. It targets the semiconductor corner of the technology sector with three times leveraged exposure to the ICE Semiconductor Index (read: What Lies Ahead for Semiconductor ETFs in Q1 Earnings?).
Direxion Daily Semiconductor Bull 3x Shares has amassed about $5.3 billion in its asset base while charging 89 bps in fees per year. Volume is good as it exchanges 44.3 million shares per day on average.