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Wall Street witnessed a massacre in April due to mounting inflationary pressures, rising rate worries and geopolitical tensions in Russia and Ukraine. The S&P 500, the Dow Jones, the Nasdaq Composite and the Russell 2000, declined 9.11%, 5.3%, 13.5% and 10.9%, respectively. FAANG stocks plus Microsoft lost $1.4 trillion in market value during April, per a MarketWatch article.
As far as rates are concerned, the benchmark treasury yield started the week with 2.85%, hit a high of 2.93% and then closed the week at 2.90%. Fed Chairman Jerome Powell said the central bank is committed to raising rates “expeditiously” to tame inflation. Not only this, yield curve also inverted to start April.
Against this backdrop, below we highlight a few ETFs that fetched sizable assets in the month of April.
Dividend ETFs Win
SPDR S&P Dividend ETF (SDY - Free Report) amassed about $2.43 billion in assets in the month. Dividend aristocrats are blue-chip dividend-paying companies with a long history of increasing dividend payments year over year. These generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. Additionally, aristocrats tend to skew the portfolio to low volatile sectors and mature companies (read: Guide to Dividend Aristocrat ETFs).
The underlying S&P High Yield Dividend Aristocrats Index measures the performance of the highest dividend yielding S&P Composite 1500 Index constituents that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years.
Leveraged Semiconductors Popular Too
Direxion Daily Semiconductor Bull 3X Shares (SOXL - Free Report) attracted about $2.41 billion in assets in April. Chip shortage is a crucial crisis right now. This year, Nvidia shares have lost 36% of their value, AMD shares have shed 41%, and Micron is down 28%. Qualcomm is down 27%. Hence, there could short-selling pressure in the semiconductor fund, which could be a reason for the swelling of the assets.
U.S. Bonds Gain Traction
SPDR Bloomberg 1-3 Month T-Bill ETF (BIL - Free Report) added about $1.78 billion in assets. iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) added about $1.48 billion in assets. iShares National Muni Bond ETF (MUB - Free Report) hauled in about $1.46 billion in assets.
Healthcare Remain in Sweet Spot
Health Care Select Sector SPDR ETF (XLV - Free Report) amassed about $1.74 billion in assets. The fund includes companies from the following industries: pharmaceuticals; health care providers & services; health care equipment & supplies; biotechnology; life sciences tools & services; and health care technology.
The sector has gained some momentum lately on investors’ rush to safety in a volatile stock market. The sector is non-cyclical in nature, which in turn, is providing a cushion to the portfolio. Additionally, lockdown measures in China have led to global growth concerns, thereby raising the appeal for defensive bets (read: Healthcare ETFs in Focus Ahead of Q1 Earnings).
Total Stock Market ETFs Gain While S&P 500 Loses
Vanguard Total Stock Market ETF (VTI - Free Report) added about $1.40 billion in assets while S&P 500 ETFs like SPDR S&P 500 ETF Trust (SPY), iShares Core S&P 500 ETF (IVV) and Vanguard 500 Index Fund (VOO) hauled in about $11.84 billion, $11.66 billion and $10.17 billion, respectively.
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ETF Asset Report of April
Wall Street witnessed a massacre in April due to mounting inflationary pressures, rising rate worries and geopolitical tensions in Russia and Ukraine. The S&P 500, the Dow Jones, the Nasdaq Composite and the Russell 2000, declined 9.11%, 5.3%, 13.5% and 10.9%, respectively. FAANG stocks plus Microsoft lost $1.4 trillion in market value during April, per a MarketWatch article.
As far as rates are concerned, the benchmark treasury yield started the week with 2.85%, hit a high of 2.93% and then closed the week at 2.90%. Fed Chairman Jerome Powell said the central bank is committed to raising rates “expeditiously” to tame inflation. Not only this, yield curve also inverted to start April.
Against this backdrop, below we highlight a few ETFs that fetched sizable assets in the month of April.
Dividend ETFs Win
SPDR S&P Dividend ETF (SDY - Free Report) amassed about $2.43 billion in assets in the month. Dividend aristocrats are blue-chip dividend-paying companies with a long history of increasing dividend payments year over year. These generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. Additionally, aristocrats tend to skew the portfolio to low volatile sectors and mature companies (read: Guide to Dividend Aristocrat ETFs).
The underlying S&P High Yield Dividend Aristocrats Index measures the performance of the highest dividend yielding S&P Composite 1500 Index constituents that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years.
Leveraged Semiconductors Popular Too
Direxion Daily Semiconductor Bull 3X Shares (SOXL - Free Report) attracted about $2.41 billion in assets in April. Chip shortage is a crucial crisis right now. This year, Nvidia shares have lost 36% of their value, AMD shares have shed 41%, and Micron is down 28%. Qualcomm is down 27%. Hence, there could short-selling pressure in the semiconductor fund, which could be a reason for the swelling of the assets.
U.S. Bonds Gain Traction
SPDR Bloomberg 1-3 Month T-Bill ETF (BIL - Free Report) added about $1.78 billion in assets. iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) added about $1.48 billion in assets. iShares National Muni Bond ETF (MUB - Free Report) hauled in about $1.46 billion in assets.
Healthcare Remain in Sweet Spot
Health Care Select Sector SPDR ETF (XLV - Free Report) amassed about $1.74 billion in assets. The fund includes companies from the following industries: pharmaceuticals; health care providers & services; health care equipment & supplies; biotechnology; life sciences tools & services; and health care technology.
The sector has gained some momentum lately on investors’ rush to safety in a volatile stock market. The sector is non-cyclical in nature, which in turn, is providing a cushion to the portfolio. Additionally, lockdown measures in China have led to global growth concerns, thereby raising the appeal for defensive bets (read: Healthcare ETFs in Focus Ahead of Q1 Earnings).
Total Stock Market ETFs Gain While S&P 500 Loses
Vanguard Total Stock Market ETF (VTI - Free Report) added about $1.40 billion in assets while S&P 500 ETFs like SPDR S&P 500 ETF Trust (SPY), iShares Core S&P 500 ETF (IVV) and Vanguard 500 Index Fund (VOO) hauled in about $11.84 billion, $11.66 billion and $10.17 billion, respectively.