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ETF Asset Report of Last Week: Treasuries Are Back
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Wall Street was downbeat last week, with losses seen in all major indexes. The S&P 500 recorded its longest weekly losing streak since the dot-com bubble burst, per a Yahoo Finance article. The S&P 500 (down 3.1%), the Dow Jones (down 2.90%), the Nasdaq Composite (down 3.8%) and the Russel 2000 (down 1.1%) all shed gains.
The S&P 500 has been hovering around 20% below its recent record high, which would represent the index’s first bear market since the COVID-19 pandemic-induced crash in early 2020. The Nasdaq is into a bear market while the Dow Jones is in correction territory.
Concerns that tighter monetary policies to tame surging inflation will slow down global economic growth have weighed on the risk sentiment and driven investors toward safe-haven assets like U.S. treasuries.
As far as benchmark U.S. treasury yields are concerned, the week started with a 2.88% yield, hit a high of 2.98% and ended at 2.78%. This happened because investors sought bonds’ safety amid renewed recessionary concerns. And due to a decline in the long-term bond yields, iShares 20+ Year Treasury Bond ETF (TLT - Free Report) was up 2.3% last week.
Against this backdrop, below we highlight a few ETFs that gained assets the most.
U.S. Short-Term Treasuries Back in Fashion
iShares Short Treasury Bond ETF (SHV - Free Report) and SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) added about $1.44 billion and $772.6 million in assets last week. We believe cash and short-dated fixed income may play a greater role in adding stability to a portfolio. This is especially true given that the Fed will keep on hiking rates this year and short-term bond yields will rise alongside.
Bank of America expects the Federal Reserve to raise U.S. interest rates to 3% by early next year from the current level of 0.75% to 1.0%, the WSJ article noted. That would result in a similar rate for cash-like assets such as money-market funds. iShares 7-10 Year Treasury Bond ETF (IEF - Free Report) and Vanguard Intermediate-Term Treasury Index ETF (VGIT - Free Report) added about $616 million and $700.6 million in assets, respectively, in the first four days of last week (read: Does Value Lie in Cash-Like ETFs Right Now?).
S&P 500 & Nasdaq too Gained Assets
iShares Core S&P 500 ETF (IVV - Free Report) and Invesco QQQ Trust (QQQ) added about $4.841 billion and $1.045 billion, respectively, in assets last week. The buy-the-dip strategy probably went in favor of the asset generation in these two ETFs.
High-Dividend Becomes Investors’ Darling
iShares Core High Dividend ETF (HDV - Free Report) amassed about $1.46 billion in assets last week. The fund HDV yields 3.24% annually. High dividend is a great attraction for investors in the current edgy market.
Small-Cap Value ETFs Rule
iShares S&P Small-Cap 600 Value ETF (IJS - Free Report) hauled in about $961.2 million in assets. Since rising rate worries have not left investors behind, value ETFs remained in fashion as this spectrum fare better amid rising rates than the growth ones.
Low-Volatility Products Also in Vogue
Low-volatility products likeInvesco S&P 500 Low Volatility ETF (SPLV - Free Report) andiShares MSCI Emerging Markets Min Vol Factor ETF (EEMV) amassed about $596.6 million and $577.0 million in assets, respectively.
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ETF Asset Report of Last Week: Treasuries Are Back
Wall Street was downbeat last week, with losses seen in all major indexes. The S&P 500 recorded its longest weekly losing streak since the dot-com bubble burst, per a Yahoo Finance article. The S&P 500 (down 3.1%), the Dow Jones (down 2.90%), the Nasdaq Composite (down 3.8%) and the Russel 2000 (down 1.1%) all shed gains.
The S&P 500 has been hovering around 20% below its recent record high, which would represent the index’s first bear market since the COVID-19 pandemic-induced crash in early 2020. The Nasdaq is into a bear market while the Dow Jones is in correction territory.
Concerns that tighter monetary policies to tame surging inflation will slow down global economic growth have weighed on the risk sentiment and driven investors toward safe-haven assets like U.S. treasuries.
As far as benchmark U.S. treasury yields are concerned, the week started with a 2.88% yield, hit a high of 2.98% and ended at 2.78%. This happened because investors sought bonds’ safety amid renewed recessionary concerns. And due to a decline in the long-term bond yields, iShares 20+ Year Treasury Bond ETF (TLT - Free Report) was up 2.3% last week.
Against this backdrop, below we highlight a few ETFs that gained assets the most.
U.S. Short-Term Treasuries Back in Fashion
iShares Short Treasury Bond ETF (SHV - Free Report) and SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) added about $1.44 billion and $772.6 million in assets last week. We believe cash and short-dated fixed income may play a greater role in adding stability to a portfolio. This is especially true given that the Fed will keep on hiking rates this year and short-term bond yields will rise alongside.
Bank of America expects the Federal Reserve to raise U.S. interest rates to 3% by early next year from the current level of 0.75% to 1.0%, the WSJ article noted. That would result in a similar rate for cash-like assets such as money-market funds. iShares 7-10 Year Treasury Bond ETF (IEF - Free Report) and Vanguard Intermediate-Term Treasury Index ETF (VGIT - Free Report) added about $616 million and $700.6 million in assets, respectively, in the first four days of last week (read: Does Value Lie in Cash-Like ETFs Right Now?).
S&P 500 & Nasdaq too Gained Assets
iShares Core S&P 500 ETF (IVV - Free Report) and Invesco QQQ Trust (QQQ) added about $4.841 billion and $1.045 billion, respectively, in assets last week. The buy-the-dip strategy probably went in favor of the asset generation in these two ETFs.
High-Dividend Becomes Investors’ Darling
iShares Core High Dividend ETF (HDV - Free Report) amassed about $1.46 billion in assets last week. The fund HDV yields 3.24% annually. High dividend is a great attraction for investors in the current edgy market.
Small-Cap Value ETFs Rule
iShares S&P Small-Cap 600 Value ETF (IJS - Free Report) hauled in about $961.2 million in assets. Since rising rate worries have not left investors behind, value ETFs remained in fashion as this spectrum fare better amid rising rates than the growth ones.
Low-Volatility Products Also in Vogue
Low-volatility products likeInvesco S&P 500 Low Volatility ETF (SPLV - Free Report) andiShares MSCI Emerging Markets Min Vol Factor ETF (EEMV) amassed about $596.6 million and $577.0 million in assets, respectively.