ETFs
5 ETFs that attracted investors last week
In total, ETFs raised $10.4 billion in capital last week, bringing year-to-date inflows to $324.7 billion. U.S. fixed income ETFs led the way higher with $5.2 billion in inflows, followed by inflows of $5 billion in international equity ETFs and $1.2 billion in inflows. US Stock ETF.
iShares Core S&P 500 ETF IVV, Invesco QQQ Trust QQQ, iShares Core MSCI EAFE ETF IEFA, iShares MSCI EAFE Growth ETF EFG and iShares iBoxx $Investment Grade Corporate Bond ETF LQD dominated the Top Creatives list last week.
Wall Street saw a smooth move last week, with the S&P 500 and Nasdaq composite indices hitting new record highs. Last week, the broad benchmark gained 1.6% while the tech-heavy index rose 3.2%. The “Magnificent Seven” sent stocks soaring. In particular, NVIDIA NVDA has seen a relentless rally. Apple AAPL reclaimed the most valuable company title last week, edging out Microsoft MSFT. All three companies are battling to become the most valuable company, with a market cap exceeding $3.2 trillion each (read: Tech ETF Showdown: Apple vs. Microsoft).
Inflation data and prospects for Fed rate cuts also contributed to the strength. Inflation in the United States slowed in May for the second consecutive month. This indicates that the economy is stabilizing and interest rates may fall. Meanwhile, the Fed, at its last meeting, predicted a rate cut for this year. It plans four cuts in 2025. The central bank changed the wording of its statement, noting that there was “further modest progress toward the committee’s 2% inflation target.” Previously, the statement had highlighted a “lack” of further progress.
We have detailed the ETFs below:
iShares Core S&P 500 ETF (IVV)
The iShares Core S&P 500 ETF dominated asset flow creation last week, amassing $11.1 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each representing no more than 7.2% of assets. The iShares Core S&P 500 ETF is heavily focused on the information technology sector, while the financial and healthcare sectors round out the next two spots with a double-digit allocation each (read: ETFs Focus on the next shake-up of the S&P 500).
The iShares Core S&P 500 ETF charges investors 3 basis points in annual fees. It has $473.4 billion in assets under management and a Zacks ETF Rank #1 (Strong Buy) with a Medium Risk Outlook.
Invesco QQQ Trust (QQQ)
Invesco QQQ Trust has accumulated $2.3 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 has a modest focus on large companies.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with $285.5 billion in assets under management and an average daily volume of 34.6 million shares. QQQ charges investors 20 basis points in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium Risk Outlook.
iShares Core MSCI EAFE ETF (IEFA)
The iShares Core MSCI EAFE ETF gathered $1.8 billion in its asset base last week. It provides exposure to a wide range of companies in Europe, Australia, Asia and the Far East and tracks the MSCI EAFE IMI Index. It holds a large basket of 2,759 stocks, each representing no more than 2.4% of the shares.
With $117.2 billion in assets under management, the iShares Core MSCI EAFE ETF has an expense ratio of 0.07% and trades an average daily volume of 7 million shares. It has a Zacks ETF Rank #3 (Hold) with a Low Risk outlook.
iShares MSCI EAFE Growth ETF (EFG)
The iShares MSCI EAFE Growth ETF raised $1.1 billion in capital, bringing its total assets under management to $14.6 billion. It provides exposure to a wide range of companies in Europe, Australia, Asia and the Far East whose earnings are expected to grow at a rate above the market average. The iShares MSCI EAFE Growth ETF tracks the MSCI EAFE Growth Index and holds 371 stocks in its basket. Japanese companies represent 22.5% of the portfolio, while France and the United Kingdom round out the next two places with double-digit exposure each.
The iShares MSCI EAFE Growth ETF charges 36 basis points in annual fees and trades an average daily volume of 917,000 shares. It has a Zacks ETF Rank #3 with a Low Risk Outlook (Read: Growth ETFs Spread to New All-Time Highs).
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
The iShares iBoxx $Investment Grade Corporate Bond ETF saw inflows of $1 billion. It provides exposure to a broad range of investment-grade U.S. corporate bonds by tracking the Markit iBoxx USD Liquid Investment Grade Index. The iShares iBoxx $ Investment Grade Corporate Bond ETF holds 2,765 securities in its basket with an effective duration of 8.36 years and an average maturity of 13.10 years.
The iShares iBoxx $Investment Grade Corporate Bond ETF has $29.4 billion in assets under management and trades in an average daily volume of 24 million shares. LQD charges 14 basis points in annual fees and has a Zacks ETF Rank #4 (Sell) with a High Risk outlook.
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Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
iShares Core MSCI EAFE ETF (IEFA): ETF Research Reports
iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports