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Overall, ETFs pulled in $22.5 billion in capital last week, taking the year-to-date inflows to $252.3 billion. U.S. equity ETFs led the way higher with $9.6 billion in inflows, closely followed by $8.1 billion in U.S. fixed-income ETFs and $3.8 billion in international fixed-income ETFs, per etf.com.
iShares iBoxx USD High Yield Corporate Bond ETF (HYG - Free Report) , SPDR S&P 500 ETF Trust (SPY - Free Report) , Invesco QQQ Trust (QQQ - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) and iShares 20+ Year Treasury Bond ETF (TLT - Free Report) dominated the top asset creation list last week.
The Dow Jones Industrial Average wrapped up its biggest weekly gain since March, gaining 2.3%, buoyed by better-than-expected results, positive momentum in homebuilding activities, easing inflation and rising consumer sentiment. The Nasdaq Composite Index and the S&P 500 saw a modest decline of 0.2% and 0.1%, respectively.
Inflation in the United States cooled down for the 12th consecutive month in June. The Consumer Price Index rose 3% year over year, marking the lowest rate since early 2021, and 0.2% over the last month. Although inflation has dropped from a peak of 9.1%, it is still significantly above the Federal Reserve's 2% target (read: 5 ETFs to Gain as Inflation Drops to a 2-Year Low).
A cooler-than-expected inflation report revived hopes that the Fed was nearing the end of its interest rate increases. Per an Economic Times article, an overwhelming majority of traders continue to expect the Fed to raise the benchmark rate to the range of 5.25%-5.5% later this month. But market participants are now betting on a 26% probability that the central bank would lift short-term borrowing costs by 25 basis points in November this year, compared with a 34% probability before the data was reported.
Consumer sentiment, as indicated by the University of Michigan preliminary index, jumped to an almost two-year high in July.
We have detailed the ETFs below:
iShares iBoxx USD High Yield Corporate Bond ETF (HYG - Free Report)
iShares iBoxx $ High Yield Corporate Bond ETF is the top asset creator, pulling in $2.6 billion in capital. It offers exposure to a broad range of U.S. high-yield corporate bonds by tracking the Markit iBoxx USD Liquid High Yield Index. iShares iBoxx $ High Yield Corporate Bond ETF holds 1,189 securities in its basket with an average maturity of 4.83 years and an effective duration of 3.61 years.
iShares iBoxx $ High Yield Corporate Bond ETF is one of the most widely used high-yield bond ETFs, with AUM of $16 billion and an average daily volume of 33 million shares. HYG charges 49 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
SPDR S&P 500 ETF Trust saw an inflow of $2.4 billion. It tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 7.5% of assets. SPDR S&P 500 ETF Trust is heavy on the information technology sector with a 28.3% share, while healthcare, financials and consumer discretionary round off the next three spots with a double-digit allocation each (read: S&P 500 Reclaims 4,500 Level: 5 Best Stocks in ETF).
SPDR S&P 500 ETF Trust charges investors 9 bps in annual fees and trades in an average daily volume of 69 million shares. It has AUM of $429.2 billion and a Zacks ETF Rank #3 with a Medium risk outlook.
Invesco QQQ Trust has accumulated $2.1 billion in capital. It provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is heavily concentrated on the top two firms with a double-digit allocation, while other firms hold no more than 7.3% of assets.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $210.1 billion and an average daily volume of 48 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares Core S&P 500 ETF has gathered $1.2 billion in its asset base. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 7.5% of the assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while healthcare and financials round off its next two spots with a double-digit allocation each.
iShares Core S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.6 million shares. It has AUM of $343.2 billion and a Zacks ETF Rank #2 with a Medium risk outlook.
iShares 20+ Year Treasury Bond ETF has accumulated $1.2 billion in its asset base. It provides exposure to long-term Treasury bonds by tracking the IDC US Treasury 20+ Year Index. iShares 20+ Year Treasury Bond ETF holds 37 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.54 years and an effective duration of 17.35 years (read: 5 Most-Loved ETFs of 1H 2023).
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $40.9 billion and an average daily volume of 22 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #3 with a High risk outlook.
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5 Most Popular ETFs of Last Week
Overall, ETFs pulled in $22.5 billion in capital last week, taking the year-to-date inflows to $252.3 billion. U.S. equity ETFs led the way higher with $9.6 billion in inflows, closely followed by $8.1 billion in U.S. fixed-income ETFs and $3.8 billion in international fixed-income ETFs, per etf.com.
iShares iBoxx USD High Yield Corporate Bond ETF (HYG - Free Report) , SPDR S&P 500 ETF Trust (SPY - Free Report) , Invesco QQQ Trust (QQQ - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) and iShares 20+ Year Treasury Bond ETF (TLT - Free Report) dominated the top asset creation list last week.
The Dow Jones Industrial Average wrapped up its biggest weekly gain since March, gaining 2.3%, buoyed by better-than-expected results, positive momentum in homebuilding activities, easing inflation and rising consumer sentiment. The Nasdaq Composite Index and the S&P 500 saw a modest decline of 0.2% and 0.1%, respectively.
Inflation in the United States cooled down for the 12th consecutive month in June. The Consumer Price Index rose 3% year over year, marking the lowest rate since early 2021, and 0.2% over the last month. Although inflation has dropped from a peak of 9.1%, it is still significantly above the Federal Reserve's 2% target (read: 5 ETFs to Gain as Inflation Drops to a 2-Year Low).
A cooler-than-expected inflation report revived hopes that the Fed was nearing the end of its interest rate increases. Per an Economic Times article, an overwhelming majority of traders continue to expect the Fed to raise the benchmark rate to the range of 5.25%-5.5% later this month. But market participants are now betting on a 26% probability that the central bank would lift short-term borrowing costs by 25 basis points in November this year, compared with a 34% probability before the data was reported.
Consumer sentiment, as indicated by the University of Michigan preliminary index, jumped to an almost two-year high in July.
We have detailed the ETFs below:
iShares iBoxx USD High Yield Corporate Bond ETF (HYG - Free Report)
iShares iBoxx $ High Yield Corporate Bond ETF is the top asset creator, pulling in $2.6 billion in capital. It offers exposure to a broad range of U.S. high-yield corporate bonds by tracking the Markit iBoxx USD Liquid High Yield Index. iShares iBoxx $ High Yield Corporate Bond ETF holds 1,189 securities in its basket with an average maturity of 4.83 years and an effective duration of 3.61 years.
iShares iBoxx $ High Yield Corporate Bond ETF is one of the most widely used high-yield bond ETFs, with AUM of $16 billion and an average daily volume of 33 million shares. HYG charges 49 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
SPDR S&P 500 ETF Trust (SPY - Free Report)
SPDR S&P 500 ETF Trust saw an inflow of $2.4 billion. It tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 7.5% of assets. SPDR S&P 500 ETF Trust is heavy on the information technology sector with a 28.3% share, while healthcare, financials and consumer discretionary round off the next three spots with a double-digit allocation each (read: S&P 500 Reclaims 4,500 Level: 5 Best Stocks in ETF).
SPDR S&P 500 ETF Trust charges investors 9 bps in annual fees and trades in an average daily volume of 69 million shares. It has AUM of $429.2 billion and a Zacks ETF Rank #3 with a Medium risk outlook.
Invesco QQQ Trust (QQQ - Free Report)
Invesco QQQ Trust has accumulated $2.1 billion in capital. It provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is heavily concentrated on the top two firms with a double-digit allocation, while other firms hold no more than 7.3% of assets.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $210.1 billion and an average daily volume of 48 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares Core S&P 500 ETF (IVV - Free Report)
iShares Core S&P 500 ETF has gathered $1.2 billion in its asset base. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 7.5% of the assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while healthcare and financials round off its next two spots with a double-digit allocation each.
iShares Core S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.6 million shares. It has AUM of $343.2 billion and a Zacks ETF Rank #2 with a Medium risk outlook.
iShares 20+ Year Treasury Bond ETF (TLT - Free Report)
iShares 20+ Year Treasury Bond ETF has accumulated $1.2 billion in its asset base. It provides exposure to long-term Treasury bonds by tracking the IDC US Treasury 20+ Year Index. iShares 20+ Year Treasury Bond ETF holds 37 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.54 years and an effective duration of 17.35 years (read: 5 Most-Loved ETFs of 1H 2023).
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $40.9 billion and an average daily volume of 22 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #3 with a High risk outlook.