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The ETF industry is seeing explosive growth, piling up huge assets amid the stock market turmoil. This is especially true as investors poured about $614 billion in new assets into U.S.-listed ETFs in 2022. It marks 32% lower inflows than the last year.
U.S. equity ETFs led the way higher with $284.6 billion in inflows, closely followed by $189 billion in U.S. fixed-income ETFs and $99.2 billion in international equity ETFs, per etf.com. As such, Vanguard S&P 500 ETF (VOO - Free Report) , Vanguard Total Stock Market ETF (VTI - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) , Schwab U.S. Dividend Equity ETF (SCHD - Free Report) , and iShares 20+ Year Treasury Bond ETF (TLT - Free Report) dominated the top creation list last year.
Wall Street wrapped up 2022 with the biggest annual loss since 2008 and the first yearly fall since 2018. The S&P 500 Index was down 19.4% last year — the benchmark’s first double-digit percentage loss since 2008, when it slid 36.6% during the global financial crisis — according to Dow Jones Market Data. The Dow Jones Industrial Average declined 8.9% while the tech-heavy Nasdaq Composite Index plunged the most by 33.1%.
Aggressive interest rate hikes to curb inflation, recession fears, geopolitical turmoil and rising concerns over COVID cases in China roiled the market badly throughout the year (read: 5 Top-Ranked ETF Wins Amid Worst Market in 2022).
The Federal Reserve has been on an aggressive tightening policy to fight the skyrocketing inflation. The central bank has raised its interest rate by 475 basis points (bps) this year in the fastest hikes since the 1980s, taking the benchmark rate to the range of 3.75% to 4.00% — the highest level since 2008. The aggressive approach has stoked worries of a recession, with top executives of major U.S. financial institutions, including JPMorgan, BlackRock and Citi, forecasting a likely economic downturn in 2023.
Meanwhile, fixed-income ETFs garnered attention as investors wagered fixed income as a safe haven over equities.
Vanguard S&P 500 ETF topped asset flow creation last year, gathering $40 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 6.5% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while healthcare, financials and consumer discretionary round off its next three spots with a double-digit allocation each (read: A Guide to the 25 Cheapest ETFs).
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.9 million shares. It has AUM of $262.9 billion and a Zacks ETF Rank #3 (Hold) with a Medium-risk outlook.
Vanguard Total Stock Market ETF pulled in $25.9 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 4,026 stocks with key holdings in technology, healthcare, consumer discretionary, industrials and financials.
Vanguard Total Stock Market ETF charges 3 bps in fees per year from investors and trades in an average daily volume of 4 million shares. VTI has amassed $261.7 billion in its asset base and has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares Core S&P 500 ETF has accumulated $21.5 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 6% of assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while healthcare and financials round off its next three spots with a double-digit allocation each.
iShares Core S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4 million shares. It has AUM of $290.2 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Schwab U.S. Dividend Equity ETF gathered about $15.4 billion in its asset. It offers exposure to 103 high-dividend-yielding U.S. companies that have a record of consistent dividend payments supported by fundamental strength based on financial ratios and ample liquidity. This can be easily done by tracking the Dow Jones U.S. Dividend 100 Index. Schwab U.S. Dividend Equity ETF is well spread across components, with none holding more than 4.4% of the assets. It charges 6 bps in annual fees and trades in a solid volume of about 3.4 million shares a day.
iShares 20+ Year Treasury Bond ETF saw inflows of $15.3 billion. It provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Year Bond Index. iShares 20+ Year Treasury Bond ETF holds 34 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.64 years and an effective duration of 17.40 years.
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $27 billion and an average daily volume of 19.8 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #4 (Sell) with a High risk outlook.
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5 Most-Loved ETFs of 2022
The ETF industry is seeing explosive growth, piling up huge assets amid the stock market turmoil. This is especially true as investors poured about $614 billion in new assets into U.S.-listed ETFs in 2022. It marks 32% lower inflows than the last year.
U.S. equity ETFs led the way higher with $284.6 billion in inflows, closely followed by $189 billion in U.S. fixed-income ETFs and $99.2 billion in international equity ETFs, per etf.com. As such, Vanguard S&P 500 ETF (VOO - Free Report) , Vanguard Total Stock Market ETF (VTI - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) , Schwab U.S. Dividend Equity ETF (SCHD - Free Report) , and iShares 20+ Year Treasury Bond ETF (TLT - Free Report) dominated the top creation list last year.
Wall Street wrapped up 2022 with the biggest annual loss since 2008 and the first yearly fall since 2018. The S&P 500 Index was down 19.4% last year — the benchmark’s first double-digit percentage loss since 2008, when it slid 36.6% during the global financial crisis — according to Dow Jones Market Data. The Dow Jones Industrial Average declined 8.9% while the tech-heavy Nasdaq Composite Index plunged the most by 33.1%.
Aggressive interest rate hikes to curb inflation, recession fears, geopolitical turmoil and rising concerns over COVID cases in China roiled the market badly throughout the year (read: 5 Top-Ranked ETF Wins Amid Worst Market in 2022).
The Federal Reserve has been on an aggressive tightening policy to fight the skyrocketing inflation. The central bank has raised its interest rate by 475 basis points (bps) this year in the fastest hikes since the 1980s, taking the benchmark rate to the range of 3.75% to 4.00% — the highest level since 2008. The aggressive approach has stoked worries of a recession, with top executives of major U.S. financial institutions, including JPMorgan, BlackRock and Citi, forecasting a likely economic downturn in 2023.
Meanwhile, fixed-income ETFs garnered attention as investors wagered fixed income as a safe haven over equities.
We have detailed the ETFs below:
Vanguard S&P 500 ETF (VOO - Free Report)
Vanguard S&P 500 ETF topped asset flow creation last year, gathering $40 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 6.5% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while healthcare, financials and consumer discretionary round off its next three spots with a double-digit allocation each (read: A Guide to the 25 Cheapest ETFs).
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.9 million shares. It has AUM of $262.9 billion and a Zacks ETF Rank #3 (Hold) with a Medium-risk outlook.
Vanguard Total Stock Market ETF (VTI - Free Report)
Vanguard Total Stock Market ETF pulled in $25.9 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 4,026 stocks with key holdings in technology, healthcare, consumer discretionary, industrials and financials.
Vanguard Total Stock Market ETF charges 3 bps in fees per year from investors and trades in an average daily volume of 4 million shares. VTI has amassed $261.7 billion in its asset base and has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares Core S&P 500 ETF (IVV - Free Report)
iShares Core S&P 500 ETF has accumulated $21.5 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 6% of assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while healthcare and financials round off its next three spots with a double-digit allocation each.
iShares Core S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4 million shares. It has AUM of $290.2 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Schwab U.S. Dividend Equity ETF (SCHD - Free Report)
Schwab U.S. Dividend Equity ETF gathered about $15.4 billion in its asset. It offers exposure to 103 high-dividend-yielding U.S. companies that have a record of consistent dividend payments supported by fundamental strength based on financial ratios and ample liquidity. This can be easily done by tracking the Dow Jones U.S. Dividend 100 Index. Schwab U.S. Dividend Equity ETF is well spread across components, with none holding more than 4.4% of the assets. It charges 6 bps in annual fees and trades in a solid volume of about 3.4 million shares a day.
Schwab U.S. Dividend Equity ETF has AUM of $44.8 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: 5 Cheap Dividend ETFs to Buy and Hold for 2023).
iShares 20+ Year Treasury Bond ETF (TLT - Free Report)
iShares 20+ Year Treasury Bond ETF saw inflows of $15.3 billion. It provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Year Bond Index. iShares 20+ Year Treasury Bond ETF holds 34 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.64 years and an effective duration of 17.40 years.
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $27 billion and an average daily volume of 19.8 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #4 (Sell) with a High risk outlook.