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5 Hot U.S. Equity ETFs of Last Week

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ETFs across various categories pulled in $45 billion in capital last week. U.S. equity ETFs led the way with $39.9 billion in inflows, followed by inflows of $2.9 billion in currency ETFs and $2.2 billion in international fixed-income ETFs.

Invesco QQQ Trust (QQQ - Free Report) , SPDR S&P 500 ETF Trust (SPY - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) , iShares Russell 2000 ETF (IWM - Free Report) and iShares MSCI USA Momentum Factor ETF (MTUM - Free Report) dominated the top creation list last week.

After the best week of 2024 on excitement over President-elect Trump’s policies, Wall Street lost momentum last week on sticky inflation and the Fed’s hawkish comments. The S&P 500 dropped more than 2%, while the Dow Jones Industrial Average shed 1.3%. The tech-heavy Nasdaq Composite Index lost more than 3% (read: 5 Best-Performing Sector ETFs Midway in Q4). 

Market expectations for interest rate cuts have come down materially. Federal Reserve Chair Jerome Powell signaled that the central bank is not in a hurry to slash rates, citing ongoing economic growth and a solid job market. Per the CME FedWatch Tool, traders increased bets that the Fed would not change rates at its December meeting, pricing in a roughly 42% chance versus 14% a month ago.  

We have detailed the ETFs below:

Invesco QQQ Trust (QQQ - Free Report)

Invesco QQQ Trust is the top asset creator, pulling in $8.4 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 is heavily concentrated on the top three firms with nearly 8% share each, while other firms hold no more than 5.3% of the assets. 

Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $317.9 billion and an average daily volume of 26 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

SPDR S&P 500 ETF Trust (SPY - Free Report)

SPDR S&P 500 ETF Trust has pulled in $6.6 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 7.1% of the assets. SPDR S&P 500 ETF Trust is heavy on the information technology sector with a 31.6% share, while financials, consumer discretionary and healthcare round off the next three spots with a double-digit allocation each (read: S&P 500 to Climb in 2025? ETFs to Watch for Next Year's Rally).

SPDR S&P 500 ETF Trust charges investors 9 bps in annual fees and trades in an average daily volume of 38 million shares. It has an AUM of $630.1 billion and a Zacks ETF Rank #2 with a Medium risk outlook.

Vanguard S&P 500 ETF (VOO - Free Report)

Vanguard S&P 500 ETF has gathered $5.6 billion in capital. It tracks the S&P 500 Index and holds 504 stocks in its basket, each accounting for no more than 7.2% of the assets. Vanguard S&P 500 ETF is heavy on the information technology sector, while financials and healthcare round off the next two spots with a double-digit allocation each. 

Vanguard 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 $571.5 billion and a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.

iShares Russell 2000 ETF (IWM - Free Report)

iShares Russell 2000 ETF has accumulated $2.8 billion in its asset base. It is the largest and most popular ETF in the small-cap space, with an AUM of $79 billion and an average daily volume of 28 million shares. iShares Russell 2000 ETF holds well-diversified 1,972 stocks in its basket and has key holdings in financials, healthcare, industrials and information technology (read: Small-Cap ETFs Set to Explode Under Trump Presidency).

iShares Russell 2000 ETF charges 19 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook. 

iShares MSCI USA Momentum Factor ETF (MTUM - Free Report)  

iShares MSCI USA Momentum Factor ETF saw an inflow of $2.3 billion. It offers exposure to large- and mid-cap U.S. stocks exhibiting relatively higher price momentum by tracking the MSCI USA Momentum SR Variant Index. MTUM holds 124 stocks in its basket with key holdings in financials, information technology, consumer staples and industrials. 

iShares MSCI USA Momentum Factor ETF has accumulated $13.1 billion in its asset base and charges 15 bps in fees per year. It trades in an average daily volume of 825,000 shares.

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