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5 ETFs That Gained Investors' Love to Start August

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Last week, ETFs pulled in $8.4 billion in capital, pushing year-to-date inflows to $350.7 billion. U.S. fixed-income ETFs led the way higher, accumulating $5.2 billion, followed by inflows of $4 billion in U.S. equity ETFs. Commodities and international equities saw outflows of $1 billion and $379 million, respectively.

As such, Vanguard Short-Term Corporate Bond ETF (VCSH - Free Report) , iShares Russell 2000 ETF (IWM - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) , and iShares 20+ Year Treasury Bond ETF (TLT - Free Report) dominated the top creation list last week.

The U.S. stock market was off to a strong start in August, with risk-on trade back in vogue thanks to a drop in Treasury yields and declining commodity prices. Additionally, a robust jobs report shifted investors’ sentiment toward economic growth (read: Asset Generating ETFs in Last One Year of Inflationary Pressure).

The economy added 528,000 jobs in July, recovering all the jobs lost during the pandemic. The unemployment rate dropped to 3.5% last month, a half-century low that was also seen just before the pandemic in early 2020. Wage growth was also stronger than anticipated in July, with average hourly earnings rising 0.5% from June and 5.2% from the year-ago level.

In fact, investors are rotating into beaten-down, high-growth areas like technology as these have become cheaply valued after the massive decline early in the year.

We have detailed the ETFs below:

Vanguard Short-Term Corporate Bond ETF (VCSH - Free Report)

Vanguard Short-Term Corporate Bond ETF topped asset flow creation last week, gathering $2.1 billion in capital. It offers exposure to the short-term investment-grade U.S. corporate bond market and tracks the Bloomberg U.S. 1–5 Year Corporate Bond Index. With AUM of $43.8 billion, Vanguard Short-Term Corporate Bond ETF holds 2346 bonds in its basket with an average maturity of 3.10 years and an average duration of 2.80 years.

Vanguard Short-Term Corporate Bond ETF charges investors 4 bps in fees per year and trades in an average daily volume of 5 million shares. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

iShares Russell 2000 ETF (IWM - Free Report)

iShares Russell 2000 ETF accumulated around $1 billion in its asset base last week. It is the largest and most popular ETF in the small-cap space with AUM of $55.2 billion and an average daily volume of 23.8 million shares. iShares Russell 2000 ETF holds well-diversified 1,975 stocks in its basket and has key holdings in healthcare, financials, industrials, information technology and consumer discretionary.

iShares Russell 2000 ETF charges 19 bps in annual fees and trades in an average daily volume of 23.8 million shares. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: 5 Small-Cap ETFs at the Forefront of the Latest Rally).

Vanguard S&P 500 ETF (VOO - Free Report)

Vanguard S&P 500 ETF accumulated $1 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket. Vanguard S&P 500 ETF is heavy on the information technology sector, while healthcare, financials, and consumer discretionary round off its next three 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 5 million shares. It has AUM of $279.8 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

iShares Core S&P 500 ETF (IVV - Free Report)

iShares Core S&P 500 ETF topped the asset flow creation last year, gathering $977.2 million in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 7.3% of assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while healthcare, consumer discretionary and financials round off the next three spots with a double-digit allocation each (read: 4 Reasons Why S&P 500 ETFs Could Rally in 2023).

iShares Core S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 5.3 million shares. It has AUM of $309 billion and a Zacks ETF Rank #3 with a Medium risk outlook.

iShares 20+ Year Treasury Bond ETF (TLT - Free Report)

iShares 20+ Year Treasury Bond ETF pulled in $973 million in capital last week. It provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Year Bond Index. iShares 20+ Year Treasury Bond ETF holds 32 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.75 years and an effective duration of 18.14 years.

TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $25.8 billion and an average daily volume of 16.1 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook.