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Last week, ETFs pulled in just $2.8 billion in capital, down 93.3% from the $42 billion seen in the week prior. This has pushed year-to-date inflows to $499.7 billion. International equity ETFs led the way higher with $2 billion in inflows, closely followed by $1.5 billion in U.S. fixed-income ETFs and $757.4 million in U.S. equity ETFs, per etf.com.
As such, iShares iBoxx USD High Yield Corporate Bond ETF (HYG - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) , SPDR Bloomberg Barclays High Yield Bond ETF (JNK - Free Report) , SPDR Portfolio S&P 500 Value ETF (SPYV - Free Report) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT - Free Report) dominated the top creation list last week.
Wall Street capped off last week with losses. The Dow Jones Industrial Average shed 1.4%, ending four weeks of gains. The S&P 500 and Nasdaq Composite Index fell 3.3% and 5.6%, respectively, to break two-week winning streaks.
The Federal Reserve delivered another rate hike by three-quarters of a percentage point in its last week FOMC meeting, pushing the benchmark rate to 3.75-4% — its highest level since 2008. This marks the fourth consecutive rate hike of 75 bps and the sixth rate hike this year. Higher rates have made mortgages and other consumer and business loans more expensive, increasing the risk of a recession. The central bank believes that higher rates will push up borrowing costs, cool the economy and bring down price inflation (read: 5 ETFs Set to Benefit From Higher Rates).
Meanwhile, investors fled to fixed-income ETFs on market turbulence triggered by an aggressive Fed rate hike, which could push the economy into recession.
We have detailed the ETFs below:
iShares iBoxx USD High Yield Corporate Bond ETF (HYG - Free Report)
iShares iBoxx $ High Yield Corporate Bond ETF is the top asset creator, pulling in $2.2 billion in capital. It offers exposure to a broad range of U.S. high-yield corporate bonds by tracking the Markit iBoxx USD Liquid High Yield Index.
iShares iBoxx $ High Yield Corporate Bond ETF is one of the most widely used high-yield bond ETFs with AUM of $15.4 billion and an average daily volume of 40.3 million shares. HYG charges 48 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High risk outlook
Vanguard S&P 500 ETF has accumulated $1.6 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for more than 7% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while healthcare, consumer discretionary and financials round off its next three spots with a double-digit allocation each (read: S&P 500 ETFs: What Investors Need to Know Right Now).
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4.8 million shares. It has AUM of $255.8 billion and a Zacks ETF Rank #3 (Hold) with a Medium-risk outlook.
SPDR Bloomberg Barclays High Yield Bond ETF (JNK - Free Report)
SPDR Bloomberg Barclays High Yield Bond ETF gathered $858 million in capital. It provides diversified exposure to U.S. dollar-denominated high-yield corporate bonds with above-average liquidity by tracking the Bloomberg High Yield Very Liquid Index. It holds 1,232 bonds in its basket with an average maturity of 5.58 years and an adjusted duration of 4.08 years.
SPDR Bloomberg Barclays High Yield Bond ETF has AUM of $8.2 billion in its asset base while trading in an average daily volume of 9.8 million shares. It charges 40 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk.
SPDR Portfolio S&P 500 Value ETF has accumulated $725 million in capital. It tracks the S&P 500 Value Index, charging investors 4 bps in annual fees. SPDR Portfolio S&P 500 Value ETF holds 445 stocks in its basket, with each accounting for no more than 3.1% of assets. Health care, financials, industrials, consumer staples and information technology are the top five sectors with double-digit exposure each.
SPDR Portfolio S&P 500 Value ETF has amassed $13.5 billion in its asset base and sees an average daily volume of 3.4 million shares. It charges 4 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Vanguard Intermediate-Term Corporate Bond ETF (VCIT - Free Report)
Vanguard Intermediate-Term Corporate Bond ETF has accumulated $546.1 million in its asset base. It follows the Bloomberg U.S. 5–10 Year Corporate Bond Index and holds 2,108 bonds in its basket with an effective maturity of 7.6 years and an average duration of 6.2 years (read: Fixed Income ETFs That Gained Investor Love Last Week).
With AUM of $37.8 billion, Vanguard Intermediate-Term Corporate Bond ETF trades in a solid volume of around 8 million shares and has 0.04% in expense ratio. The product has a Zacks ETF Rank #3 with a Medium risk outlook.
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5 ETFs That Gained Investors' Love Last Week
Last week, ETFs pulled in just $2.8 billion in capital, down 93.3% from the $42 billion seen in the week prior. This has pushed year-to-date inflows to $499.7 billion. International equity ETFs led the way higher with $2 billion in inflows, closely followed by $1.5 billion in U.S. fixed-income ETFs and $757.4 million in U.S. equity ETFs, per etf.com.
As such, iShares iBoxx USD High Yield Corporate Bond ETF (HYG - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) , SPDR Bloomberg Barclays High Yield Bond ETF (JNK - Free Report) , SPDR Portfolio S&P 500 Value ETF (SPYV - Free Report) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT - Free Report) dominated the top creation list last week.
Wall Street capped off last week with losses. The Dow Jones Industrial Average shed 1.4%, ending four weeks of gains. The S&P 500 and Nasdaq Composite Index fell 3.3% and 5.6%, respectively, to break two-week winning streaks.
The Federal Reserve delivered another rate hike by three-quarters of a percentage point in its last week FOMC meeting, pushing the benchmark rate to 3.75-4% — its highest level since 2008. This marks the fourth consecutive rate hike of 75 bps and the sixth rate hike this year. Higher rates have made mortgages and other consumer and business loans more expensive, increasing the risk of a recession. The central bank believes that higher rates will push up borrowing costs, cool the economy and bring down price inflation (read: 5 ETFs Set to Benefit From Higher Rates).
Meanwhile, investors fled to fixed-income ETFs on market turbulence triggered by an aggressive Fed rate hike, which could push the economy into recession.
We have detailed the ETFs below:
iShares iBoxx USD High Yield Corporate Bond ETF (HYG - Free Report)
iShares iBoxx $ High Yield Corporate Bond ETF is the top asset creator, pulling in $2.2 billion in capital. It offers exposure to a broad range of U.S. high-yield corporate bonds by tracking the Markit iBoxx USD Liquid High Yield Index.
iShares iBoxx $ High Yield Corporate Bond ETF is one of the most widely used high-yield bond ETFs with AUM of $15.4 billion and an average daily volume of 40.3 million shares. HYG charges 48 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High risk outlook
Vanguard S&P 500 ETF (VOO - Free Report)
Vanguard S&P 500 ETF has accumulated $1.6 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for more than 7% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while healthcare, consumer discretionary and financials round off its next three spots with a double-digit allocation each (read: S&P 500 ETFs: What Investors Need to Know Right Now).
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4.8 million shares. It has AUM of $255.8 billion and a Zacks ETF Rank #3 (Hold) with a Medium-risk outlook.
SPDR Bloomberg Barclays High Yield Bond ETF (JNK - Free Report)
SPDR Bloomberg Barclays High Yield Bond ETF gathered $858 million in capital. It provides diversified exposure to U.S. dollar-denominated high-yield corporate bonds with above-average liquidity by tracking the Bloomberg High Yield Very Liquid Index. It holds 1,232 bonds in its basket with an average maturity of 5.58 years and an adjusted duration of 4.08 years.
SPDR Bloomberg Barclays High Yield Bond ETF has AUM of $8.2 billion in its asset base while trading in an average daily volume of 9.8 million shares. It charges 40 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk.
SPDR Portfolio S&P 500 Value ETF (SPYV - Free Report)
SPDR Portfolio S&P 500 Value ETF has accumulated $725 million in capital. It tracks the S&P 500 Value Index, charging investors 4 bps in annual fees. SPDR Portfolio S&P 500 Value ETF holds 445 stocks in its basket, with each accounting for no more than 3.1% of assets. Health care, financials, industrials, consumer staples and information technology are the top five sectors with double-digit exposure each.
SPDR Portfolio S&P 500 Value ETF has amassed $13.5 billion in its asset base and sees an average daily volume of 3.4 million shares. It charges 4 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Vanguard Intermediate-Term Corporate Bond ETF (VCIT - Free Report)
Vanguard Intermediate-Term Corporate Bond ETF has accumulated $546.1 million in its asset base. It follows the Bloomberg U.S. 5–10 Year Corporate Bond Index and holds 2,108 bonds in its basket with an effective maturity of 7.6 years and an average duration of 6.2 years (read: Fixed Income ETFs That Gained Investor Love Last Week).
With AUM of $37.8 billion, Vanguard Intermediate-Term Corporate Bond ETF trades in a solid volume of around 8 million shares and has 0.04% in expense ratio. The product has a Zacks ETF Rank #3 with a Medium risk outlook.