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The Zacks Analyst Blog Highlights VOO, TLT, JEPI, QUAL and AGG
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For Immediate Release
Chicago, IL – July 6, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Vanguard S&P 500 ETF (VOO - Free Report) , iShares 20+ Year Treasury Bond ETF (TLT - Free Report) , JPMorgan Equity Premium Income ETF (JEPI - Free Report) , iShares Edge MSCI USA Quality Factor ETF (QUAL - Free Report) and iShares Core U.S. Aggregate Bond ETF (AGG - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
5 Most-Loved ETFs of the First Half of 2023
The ETF industry is seeing explosive growth, piling up huge assets amid the stock market surge. This is especially true as investors poured about $200.6 billion in new assets into U.S.-listed ETFs in the first half of 2023. This compares to $298.7 billion at the same time a year ago.
U.S. fixed-income ETFs led the way higher with $86.7 billion in inflows, closely followed by $52.9 billion in U.S. equity ETFs and $48.5 billion in international equity ETFs, per etf.com. As such, the following ETFs dominated the top creation list in the first half of the year.
Wall Street wrapped up the first half with big gains. The Nasdaq Composite Index was the outperformer, climbing 29% and logging in the best first half in 40 years, while the S&P 500 and the Dow Jones gained about 16% and 3%, respectively (read: Nasdaq Celebrates Best First Half in 40 Years: ETFs in Focus).
Mega-cap tech stocks' surge, a better-than-expected earnings season and hopes that the Fed is nearing the end of its rate-hiking cycle have boosted investors' confidence amid slowdown concerns and the banking crisis. Inflation has moderated after hitting a 40-year high last summer but still stands well above the Fed's 2% target.
Additionally, the rounds of economic data signaled economic resilience despite fears of an impending recession. Consumer confidence unexpectedly jumped to an 18-month high in June amid lingering fears of a recession. The U.S. housing sector has also shown immense improvement, with homebuilder confidence reaching its highest level in almost a year. While a recession was seen as a likely scenario at the start of the year, the chances decreased significantly as the year progressed.
Meanwhile, the fixed-income funds gained traction as worries about financial instability across the globe, as well as recession fears, raised the appeal for a safe-haven investment.
We have detailed the ETFs below:
Vanguard S&P 500 ETF
Vanguard S&P 500 ETF topped asset flow creation in the first half, gathering $15.2 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 7.5% 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: Top and Flop ETFs of the First Half of 2023).
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.5 million shares. It has AUM of $322 billion and a Zacks ETF Rank #2 (Buy) with a Medium-risk outlook.
iShares 20+ Year Treasury Bond ETF
iShares 20+ Year Treasury Bond ETF has accumulated $11.4 billion in its asset base. It provides exposure to long-term Treasury bonds by tracking the IDC US Treasury 20+ Year Index. iShares 20+ Year Treasury Bond ETF holds 37 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.49 years and an effective duration of 17.45 years.
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $39.3 billion and an average daily volume of 20 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
JPMorgan Equity Premium Income ETF
JPMorgan Equity Premium Income ETF has gathered $9.8 billion in capital. It seeks to provide current income while maintaining prospects for capital appreciation. JPMorgan Equity Premium Income ETF generates income through a combination of selling options and investing in U.S. large-cap stocks, seeking to deliver a monthly income stream from associated option premiums and stock dividends.
JPMorgan Equity Premium Income ETF has AUM of $27.7 billion and charges 35 bps in annual fees. The product trades in an average daily volume of 5 million shares.
iShares Edge MSCI USA Quality Factor ETF
Shares Edge MSCI USA Quality Factor ETF pulled in $9.8 billion in capital in the first half. It provides exposure to large and mid-cap stocks exhibiting positive fundamentals (high return on equity, stable year-over-year earnings growth and low financial leverage) by tracking the MSCI USA Sector Neutral Quality Index. QUAL holds 125 stocks in its basket, with each making up not more than 5.8% share (read: Quality ETFs to Shine as More Fed Hikes Loom Despite June Pause?).
With an AUM of $31.4 billion, iShares Edge MSCI USA Quality Factor ETF charges 15 bps of annual fees, and trades an average daily volume of 1 million shares.
iShares Core U.S. Aggregate Bond ETF
iShares Core U.S. Aggregate Bond ETF saw an inflow of $8.4 billion. It offers broad exposure to U.S. investment-grade bonds by tracking the Bloomberg US Aggregate Bond Index. iShares Core U.S. Aggregate Bond ETF holds 10,010 securities in its basket with an average maturity of 8.75 years and an effective duration of 6.33 years.
iShares Core U.S. Aggregate Bond ETF has AUM of $91.6 billion and an average daily volume of 6 million shares. It charges 3 bps in annual fees.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights VOO, TLT, JEPI, QUAL and AGG
For Immediate Release
Chicago, IL – July 6, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Vanguard S&P 500 ETF (VOO - Free Report) , iShares 20+ Year Treasury Bond ETF (TLT - Free Report) , JPMorgan Equity Premium Income ETF (JEPI - Free Report) , iShares Edge MSCI USA Quality Factor ETF (QUAL - Free Report) and iShares Core U.S. Aggregate Bond ETF (AGG - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
5 Most-Loved ETFs of the First Half of 2023
The ETF industry is seeing explosive growth, piling up huge assets amid the stock market surge. This is especially true as investors poured about $200.6 billion in new assets into U.S.-listed ETFs in the first half of 2023. This compares to $298.7 billion at the same time a year ago.
U.S. fixed-income ETFs led the way higher with $86.7 billion in inflows, closely followed by $52.9 billion in U.S. equity ETFs and $48.5 billion in international equity ETFs, per etf.com. As such, the following ETFs dominated the top creation list in the first half of the year.
Wall Street wrapped up the first half with big gains. The Nasdaq Composite Index was the outperformer, climbing 29% and logging in the best first half in 40 years, while the S&P 500 and the Dow Jones gained about 16% and 3%, respectively (read: Nasdaq Celebrates Best First Half in 40 Years: ETFs in Focus).
Mega-cap tech stocks' surge, a better-than-expected earnings season and hopes that the Fed is nearing the end of its rate-hiking cycle have boosted investors' confidence amid slowdown concerns and the banking crisis. Inflation has moderated after hitting a 40-year high last summer but still stands well above the Fed's 2% target.
Additionally, the rounds of economic data signaled economic resilience despite fears of an impending recession. Consumer confidence unexpectedly jumped to an 18-month high in June amid lingering fears of a recession. The U.S. housing sector has also shown immense improvement, with homebuilder confidence reaching its highest level in almost a year. While a recession was seen as a likely scenario at the start of the year, the chances decreased significantly as the year progressed.
Meanwhile, the fixed-income funds gained traction as worries about financial instability across the globe, as well as recession fears, raised the appeal for a safe-haven investment.
We have detailed the ETFs below:
Vanguard S&P 500 ETF
Vanguard S&P 500 ETF topped asset flow creation in the first half, gathering $15.2 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 7.5% 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: Top and Flop ETFs of the First Half of 2023).
Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.5 million shares. It has AUM of $322 billion and a Zacks ETF Rank #2 (Buy) with a Medium-risk outlook.
iShares 20+ Year Treasury Bond ETF
iShares 20+ Year Treasury Bond ETF has accumulated $11.4 billion in its asset base. It provides exposure to long-term Treasury bonds by tracking the IDC US Treasury 20+ Year Index. iShares 20+ Year Treasury Bond ETF holds 37 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.49 years and an effective duration of 17.45 years.
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $39.3 billion and an average daily volume of 20 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
JPMorgan Equity Premium Income ETF
JPMorgan Equity Premium Income ETF has gathered $9.8 billion in capital. It seeks to provide current income while maintaining prospects for capital appreciation. JPMorgan Equity Premium Income ETF generates income through a combination of selling options and investing in U.S. large-cap stocks, seeking to deliver a monthly income stream from associated option premiums and stock dividends.
JPMorgan Equity Premium Income ETF has AUM of $27.7 billion and charges 35 bps in annual fees. The product trades in an average daily volume of 5 million shares.
iShares Edge MSCI USA Quality Factor ETF
Shares Edge MSCI USA Quality Factor ETF pulled in $9.8 billion in capital in the first half. It provides exposure to large and mid-cap stocks exhibiting positive fundamentals (high return on equity, stable year-over-year earnings growth and low financial leverage) by tracking the MSCI USA Sector Neutral Quality Index. QUAL holds 125 stocks in its basket, with each making up not more than 5.8% share (read: Quality ETFs to Shine as More Fed Hikes Loom Despite June Pause?).
With an AUM of $31.4 billion, iShares Edge MSCI USA Quality Factor ETF charges 15 bps of annual fees, and trades an average daily volume of 1 million shares.
iShares Core U.S. Aggregate Bond ETF
iShares Core U.S. Aggregate Bond ETF saw an inflow of $8.4 billion. It offers broad exposure to U.S. investment-grade bonds by tracking the Bloomberg US Aggregate Bond Index. iShares Core U.S. Aggregate Bond ETF holds 10,010 securities in its basket with an average maturity of 8.75 years and an effective duration of 6.33 years.
iShares Core U.S. Aggregate Bond ETF has AUM of $91.6 billion and an average daily volume of 6 million shares. It charges 3 bps in annual fees.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.