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ETF Asset Report for November

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November has been a good month for the U.S. stock market. Hopes of smaller interest rate hikes from December, thanks to a slight decline in inflation, renewed investors’ risk-on trading. However, renewed COVID-19 outbreaks in China and the resultant lockdowns as well as a weakening global growth outlook, continued to weigh on sentiments.

Additionally, the holiday season started on a strong note despite concerns about inflation and higher prices. Consumers spent a record $9.12 billion, up 2.3% year over year, on online shopping during Black Friday this year, according to Adobe.

Holiday spending is expected to be healthy despite inflationary challenges, with retail sales likely to grow 6-8% from the 2021 level during November and December to $942.6-$960.4 billion, per the National Retail Federation. Holiday online sales are forecast to increase 10-12% to $262.8-$267.6 billion, up from $238.9 billion in 2021.

Overall, the S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 gained 8.5%, 7.6%, 9% and 5.5%, respectively, past month.

Nasdaq ETF QQQ Tops the Chart

Invesco QQQ Trust (QQQ - Free Report) hauled in about $4.51 billion in assets.As rates dived a bit in November on prospects of lower rate hike trail from here, high-growth sectors benefited in November. Tech-heavy ETF like QQQ performs better in a falling rate environment.

Junk Bond ETFs Win

iShares iBoxx USD High Yield Corporate Bond ETF (HYG - Free Report) has fetched about $4.37 billion in assets. As risk-on sentiments returned in the market, investors started betting big on corporate bond ETFs. Vanguard Short-Term Corporate Bond ETF (VCSH) amassed about $2.33 billion in assetsin the month.

Tax-Exempt Bonds Win Too

Vanguard Tax-Exempt Bond ETF (VTEB - Free Report) and iShares National Muni Bond ETF (MUB) too garnered about $2.03 billion and $1.29 billion in assets, respectively.

High-Dividend Yielding ETFs Beat Simple Dividend Growers

Schwab U.S. Dividend Equity ETF (SCHD - Free Report) amassed about $1.56 billion in assets. The fund the tracks the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The fund yields 3.14% annually and charges 6 bps in fees.

On the other hand,SPDR S&P Dividend ETF (SDY - Free Report) lost about $1.54 billion in assets. The fund bet on stocks that have been consistently increasing dividends every year for at least 20 consecutive years. The fund SDY yields 2.49% annually and charges 35 bps in fees.

Value ETFs Fell Out of Favor

As rates started falling,Vanguard Value ETF (VTV - Free Report) lost about $4.15 billion in assets.This is because of the fact that value stocks underperform in a low-rate environment. iShares Russell 1000 Value ETF (IWD - Free Report) witnessed about $750.1 million in assets gushing out of the fund in the month.

Short-Term U.S. Treasury ETFs Lost Assets

iShares Short Treasury Bond ETF (SHV - Free Report) , iShares 1-3 Year Treasury Bond ETF (SHY - Free Report) and PIMCO Enhanced Short Maturity Active ETF (MINT) lost about $4.27 billion, $781.0 million and $703.0 million in assets, respectively, in the month. As the Fed offered cues of slowing its rate hike pace, investors turned their faces away from short-term treasury bonds. Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) too lost about $845.7 million in assets as inflation cooled a bit.


 

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