ETFs
The 5 ETFs most popular with investors last week
ETFs across various categories attracted $11.3 billion in capital last week, bringing year-to-date inflows to $406.1 billion. U.S. bond ETFs led the way with $3.9 billion in inflows, followed by $3.4 billion in inflows into U.S. equity ETFs and $1.4 billion into international equity ETFs.
iShares Core S&P 500 Exchange Traded Fund IVV, Vanguard S&P 500 Exchange Traded Fund VOO, Invesco QQQ Trust QQQ, Vanguard Total Stock Market Exchange Traded Fund VTI and iShares 20+ Year Treasury Bond ETF TLT topped the list of top creations last week.
Wall Street had a quiet week last week, with the S&P 500 and Nasdaq Composite both posting their best weeks since April, up 1.9% and 3.5%, respectively. Both indexes ended the week at record highs. The Dow Jones Industrial Average gained 0.7%. A rally in big tech stocks and a drop in Treasury yields after jobs data raised the likelihood of a Fed rate cut in the coming month provided renewed optimism.
The U.S. economy added 206,000 jobs in June, slightly more than economists had estimated 200,000 but less than May, which was revised down to 218,000 from 272,000. The unemployment rate rose to 4.1% from 4%, the highest rate since November 2021. Average hourly earnings growth also slowed, rising 0.3% after rising 0.4% in May. Year-over-year, wages rose 3.9%, the slowest gain since June 2021, and followed a 4.1% increase in May. The probability that the Fed will ease rates in September rose to 79% from 66% ahead of the jobs data, according to the CME’s FedWatch tool (read: September Rate Cut Bets Make These ETFs Attractive).
Low rates reduce the cost of borrowing, often needed to finance business expansion, thereby stimulating growth.
We have detailed the ETFs below:
iShares Core S&P 500 Exchange Traded Fund (IVV)
The iShares Core S&P 500 ETF was the biggest inflow creator last week, bringing in $5 billion in capital. It tracks the S&P 500 index and holds 503 stocks in its basket, each representing no more than 7.4% of assets. The iShares Core S&P 500 ETF is heavily weighted toward the information technology sector, while the financials and healthcare sectors round out the next two spots with double-digit allocations each.
The iShares Core S&P 500 ETF charges investors 3 bps in annual fees. It has $499.9 billion in assets under management and trades an average of 3.3 million shares per day. IVV has a Zacks ETF Rank #1 (Strong Buy) with a medium risk outlook.
Vanguard S&P 500 Exchange Traded Fund (VOO)
The Vanguard S&P 500 ETF has accumulated $3.7 billion in assets. It tracks the S&P 500 index and holds 504 stocks in its basket, each representing at most 7% of assets. The Vanguard S&P 500 ETF is heavily weighted toward the information technology sector, while the financial and healthcare sectors round out the next two spots with double-digit allocations each.
The Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades an average of 4 million shares per day. It has $480.7 billion in assets under management and is a Zacks ETF Rank #1 (Strong Buy) with an average risk outlook (read: 5 ETFs That Saw Huge Inflows in the First Half of the Year).
Invesco QQQ Trust (QQQ)
Invesco QQQ Trust has raised $3.3 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 the largest companies.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap sector, with $297.3 billion in assets under management and an average daily volume of 31 million shares. QQQ charges investors 20 bps in annual fees and is ranked #2 (Buy) by Zacks with a medium risk outlook (read: 5 Stocks That Powered the Nasdaq ETF in the First Half of the Year).
Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF has raised $3 billion in capital. It provides exposure to the broader stock market by tracking the CRSP US Total Market Index. The Vanguard Total Stock Market ETF holds a broad, well-diversified basket of 3,704 stocks with key holdings in the technology, consumer discretionary, industrials, healthcare and financials sectors.
The Vanguard Total Stock Market ETF charges investors 3 bps in fees per year and trades an average of 3 million shares per day. VTI has accumulated $415.5 billion in assets and is ranked #2 by Zacks ETF with an average risk outlook.
iShares 20+ Year Treasury Bond ETF (TLT)
The iShares 20+ Year Treasury Bond ETF has accumulated $855.6 million in assets. It provides exposure to long-term Treasury bonds by tracking the ICE US Treasury 20+ Years Bond Index. The iShares 20+ Year Treasury Bond ETF holds 44 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.63 years and an effective duration of 16.52 years.
TLT is one of the most popular and liquid ETFs in the bond sector, with $53.9 billion in assets under management and an average daily volume of 33.6 million shares. The iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #4 (Sell) with a high risk outlook.
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iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports