Overall, ETFs pulled in $329 billion in capital in the first nine months of 2023. With this, the ETF industry is on track to hit $438 billion in inflows this year if the trend continues. U.S. equity ETFs led the way higher with $135.4 billion in inflows, followed by $118.8 million in U.S. fixed-income ETFs and $60 million in international equity ETFs, per etf.com.

As such, Vanguard S&P 500 ETF (VOO Quick QuoteVOO - Free Report) , iShares Core S&P 500 ETF (IVV Quick QuoteIVV - Free Report) ,iShares 20+ Year Treasury Bond ETF (TLT Quick QuoteTLT - Free Report) ), Vanguard Total Stock Market ETF (VTI Quick QuoteVTI - Free Report) and JPMorgan Equity Premium Income ETF(JEPI Quick QuoteJEPI - Free Report) dominated the top creation list in the first nine months.

Market Trend of First Nine Months in Brief

After logging big first-half gains, Wall Street was caught in feeble trading in the third quarter. This is especially true as the three major indices logged the first quarterly loss of the year. Worries over longer-than-expected higher interest rates and a weak Chinese economy took a toll on investors’ sentiment.

The powerful driver of the stock market in the first half, “magnificent seven,” has lost its allure due to a rise in yields. The 10-year yield climbed to a 15-year high in September, prompting investors to initiate risk-off trade. Though the Fed kept interest rates steady at the latest FOMC meeting, it hinted at a possible rate hike later this year and curtailed expectations for rate cuts in 2024. These suggest a prolonged phase of tight monetary policy geared toward tackling inflation (read: High-Dividend ETFs: Winners Amid Fed's Higher-For-Longer Rate Cues).

However, the economy has withstood the worst of the Fed’s policy tightening so far. Recent indicators suggest that economic activity has been expanding at a moderate pace, buoyed by robust consumer spending, strong job gains and a low unemployment rate. Notably, the economy has added 278,000 jobs per month so far this year, and the unemployment rate of 3.8% is not far from a half-century low. Further, corporate earnings have improved. There has been a notable improvement in the earnings outlook in recent months, with positive revisions for several key sectors since the start of the third quarter.

Let’s delve into the five ETFs in detail below:

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

Vanguard S&P 500 ETF topped asset flow creation in the first nine months, gathering $29.6 billion in capital. It tracks the S&P 500 Index and holds 507 stocks in its basket, each accounting for no more than 7.3% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while consumer discretionary, healthcare and industrials 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 3.7 million shares. It has AUM of $323.6 billion and a Zacks ETF Rank #2 (Buy) with a Medium-risk outlook.

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

iShares Core S&P 500 ETF pulled in $17 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 7.1% of assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while healthcare, financials and consumer discretionary round off its next two spots with a double-digit allocation each (read: 4 Top-Ranked ETF Winners of Q3 With More Room for Growth).

iShares Core S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.5 million shares. It has AUM of $341 billion and a Zacks ETF Rank #2 with a Medium risk outlook.

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

iShares 20+ Year Treasury Bond ETF has accumulated $15.9 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 40 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.45 years and an effective duration of 16.51 years.

TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $38.9 billion and an average daily volume of 27.3 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Inverse Treasury ETFs Surge as Yields Rise).

Vanguard Total Stock Market ETF (VTI Quick QuoteVTI - Free Report)

Vanguard Total Stock Market ETF gathered $13.5 billion in capital. It provides exposure to the broader stock market by tracking the CRSP US Total Market Index. Vanguard Total Stock Market ETF holds a large basket of well-diversified 3,839 stocks with key holdings in technology, consumer discretionary, industrials, healthcare and financials.

Vanguard Total Stock Market ETF charges 3 bps in fees per year from investors and trades in an average daily volume of 3 million shares. VTI has amassed $304.9 billion in its asset base and has a Zacks ETF Rank #2 with a Medium risk outlook.

JPMorgan Equity Premium Income ETF (JEPI Quick QuoteJEPI - Free Report)

JPMorgan Equity Premium Income ETF has gathered $12.1 billion in capital. It seeks to provide current income while maintaining prospects for capital appreciation. JPMorgan Equity Premium Income ETF generates income through a combination of selling options and investing in U.S. large-cap stocks, seeking to deliver a monthly income stream from associated option premiums and stock dividends.

JPMorgan Equity Premium Income ETF has AUM of $29.3 billion and charges 35 bps in annual fees. The product trades in an average daily volume of 4 million shares.