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Wall Street has been upbeat in the year-to-date frame as current stress in the market has been outweighed by superb gains in the first half. The S&P 500 (up 12.5%), the Dow Jones (up 2.5%) and the Nasdaq (up 26.2%) — all equity indexes have gained this year due to a less-hawkish Fed, cooling inflation, ebbing U.S. recession fears, a steady jobs market, resilient consumers and decent corporate earnings. Most importantly, this year can be easily remembered for the AI boom and the tech rally.
Against this backdrop, below we discuss the year-to-date asset flow of the ETF industry .
S&P 500 Tops
Due to the upbeat performance of the S&P 500, iShares Core S&P 500 ETF (IVV - Free Report) and Vanguard S&P 500 ETF (VOO - Free Report) have garnered about $34.0 billion and $19.7 billion in assets so far this year. The rally in growth stocks this year, especially the big tech ones, has boosted the S&P 500 materially as the index is heavily skewed in the segment.
Long-Term Treasuries Come in Second
iShares 20+ Year Treasury Bond ETF (TLT - Free Report) haveadded about $19 billion in assets this year, despite a loss of 8.2% as of Sep 22, 2023. Higher yields offered by the fund have probably led investors to stick to the fund.
Total Stock & Bond Market Win Too
Total stock market fund Vanguard Total Stock Market Index Fund (VTI - Free Report) and Vanguard Total Bond Market Index Fund (BND - Free Report) have fetched about $14.8 billion and $11.8 billion in assets, respectively. It shows that a spread-out approach in making investing decisions has worked this year.
Quality ETFs Become Investors’ Favorite
iShares MSCI USA Quality Factor ETF (QUAL - Free Report) has generated about $9.9 billion in assets this year. Wall Street has been under pressure in the second half of 2023 due to the global economic downturn, mirroring higher interest rates and the odd situation in China's domestic markets.
Rates are likely to remain higher for longer in the United States due to sticky inflation. All these factors have made quality ETFs popular choices in recent weeks (read: Time for High-Quality ETFs as Slowdown Worries Mount?).
ESG Underperforms
ESG ETF iShares ESG Aware MSCI USA ETF (ESGU - Free Report) has lost about $9.21 billion in assets so far this year. Over the past decade, environmentally friendly stocks have tended to outperform others. But the segment failed to impress investors last year amid rising rates. Although tech stocks – which normally have high ESG scores – have rebounded this year, higher-for-longer rate cues probably have left investors edgy about the segment.
Emerging Markets Underperform Too
Emerging market ETFs iShares MSCI Emerging Markets Min Vol Factor ETF (EEMV - Free Report) and iShares MSCI Emerging Markets ETF (EEM - Free Report) lost about $3.9 billion and $3.3 billion in the quarter. A stronger greenback and a slowdown in the Chinese economy have dealt a blow to the emerging market ETFs so far this year.
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ETF Asset Report YTD: S&P 500 Tops, ESG Loses
Wall Street has been upbeat in the year-to-date frame as current stress in the market has been outweighed by superb gains in the first half. The S&P 500 (up 12.5%), the Dow Jones (up 2.5%) and the Nasdaq (up 26.2%) — all equity indexes have gained this year due to a less-hawkish Fed, cooling inflation, ebbing U.S. recession fears, a steady jobs market, resilient consumers and decent corporate earnings. Most importantly, this year can be easily remembered for the AI boom and the tech rally.
Against this backdrop, below we discuss the year-to-date asset flow of the ETF industry .
S&P 500 Tops
Due to the upbeat performance of the S&P 500, iShares Core S&P 500 ETF (IVV - Free Report) and Vanguard S&P 500 ETF (VOO - Free Report) have garnered about $34.0 billion and $19.7 billion in assets so far this year. The rally in growth stocks this year, especially the big tech ones, has boosted the S&P 500 materially as the index is heavily skewed in the segment.
Long-Term Treasuries Come in Second
iShares 20+ Year Treasury Bond ETF (TLT - Free Report) haveadded about $19 billion in assets this year, despite a loss of 8.2% as of Sep 22, 2023. Higher yields offered by the fund have probably led investors to stick to the fund.
Total Stock & Bond Market Win Too
Total stock market fund Vanguard Total Stock Market Index Fund (VTI - Free Report) and Vanguard Total Bond Market Index Fund (BND - Free Report) have fetched about $14.8 billion and $11.8 billion in assets, respectively. It shows that a spread-out approach in making investing decisions has worked this year.
Quality ETFs Become Investors’ Favorite
iShares MSCI USA Quality Factor ETF (QUAL - Free Report) has generated about $9.9 billion in assets this year. Wall Street has been under pressure in the second half of 2023 due to the global economic downturn, mirroring higher interest rates and the odd situation in China's domestic markets.
Rates are likely to remain higher for longer in the United States due to sticky inflation. All these factors have made quality ETFs popular choices in recent weeks (read: Time for High-Quality ETFs as Slowdown Worries Mount?).
ESG Underperforms
ESG ETF iShares ESG Aware MSCI USA ETF (ESGU - Free Report) has lost about $9.21 billion in assets so far this year. Over the past decade, environmentally friendly stocks have tended to outperform others. But the segment failed to impress investors last year amid rising rates. Although tech stocks – which normally have high ESG scores – have rebounded this year, higher-for-longer rate cues probably have left investors edgy about the segment.
Emerging Markets Underperform Too
Emerging market ETFs iShares MSCI Emerging Markets Min Vol Factor ETF (EEMV - Free Report) and iShares MSCI Emerging Markets ETF (EEM - Free Report) lost about $3.9 billion and $3.3 billion in the quarter. A stronger greenback and a slowdown in the Chinese economy have dealt a blow to the emerging market ETFs so far this year.