The S&P 500-based ETF (SPY - Free Report) , Dow Jones-based ETF (DIA - Free Report) and Nasdaq 100-based (QQQ - Free Report) added in the range of 0.7% to 1.9% in September. Still, the value quotient prevailed in the market on economic worries. Let’s delve a little deeper.
S&P 500 Tops
September went well for the S&P 500 as evident from the $9.48-billion of inflows intoSPDR S&P 500 ETF Trust (SPY - Free Report) and $1.97 billion into iShares Core S&P 500 ETF (IVV - Free Report) . News of U.S.-China trade talks scheduled for October probably boosted the broader market.
Small-cap ETF iShares Russell 2000 ETF (IWM - Free Report) accumulated about $3.64 billion in assets in the month. A dovish Fed, trade war tensions, global growth worries, geopolitical risks, compelling valuation and a decently growing U.S. economy have probably worked in favor of pint-sized stocks.
International Bond Market in Fine Fettle
Fixed income ETFs did well in September as the global market was hurt by the U.S.-China trade tiff. Plus, there was a rout in the market caused by an oil attack on Saudi oilfield. Owing to global growth worries, several developed and emerging economies slashed rates. The ECB will also restart bond purchases of 20 billion euros a month in November.
Vanguard Total International Bond ETF BNDX amassed $2.68 billion in September and long-term U.S. fund iShares 20+ Year Treasury Bond ETF (TLT - Free Report) garnered about $2.42 billion. Meanwhile, iShares 3-7 Year Treasury Bond ETF (IEI - Free Report) raked in about $1.58 billion.
Gold Continued to Glitter
Gold bullion ETF SPDR Gold Trust (GLD - Free Report) fetched about $2.18 billion in assets. Since Saudi oil attack and talks of Trump impeachment made the markets edgy in September, safe-haven metal gold hogged investors’ attention (read: Guide to 10 Most-Heavily Traded ETFs).
Low-Volatility ETFs in Investors’ Favor
Low-volatility products have the potential to outpace the broader market during turbulent times, providing significant protection to the portfolio. These funds comprise more stable stocks that have seen the least price movement. Thanks to heightened market volatility, iShares Edge MSCI Min Vol U.S.A. ETF (USMV - Free Report) attracted about $1.54 billion in assets.
Short-Term Treasury Bonds Lost
iShares Short Treasury Bond ETF (SHV - Free Report) and Vanguard Short-Term Bond ETF (BSV - Free Report) shed about $2.86 billion and $936.8 million in assets in the month.
Consumer ETF Sheds Assets
U.S. consumer confidence receded in September the maximum in nine months, thanks to escalating trade tensions. Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) lost about $522.0 million in assets.
Dow Jones Out of Favor
Though the broader market initially rejoiced the prospective U.S.-China trade talks, the momentum slowed down at the end of the month. In a recent speech at the United Nations General Assembly, Trump urged nations to opt for nationalism and reject globalism. Trump also issued a message to China that he will not conform to any “bad deal” pertaining to trade negotiations. This hurt investors’ confidence in SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report) , which lost about $534.2 million in assets.
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