Overall, ETFs pulled in $9.5 billion in capital last week, taking year-to-date inflows to $285.3 billion. U.S. equity ETFs led the way higher with $6.3 billion in inflows, followed by $2.1 billion in U.S. fixed-income ETFs and $866.2 million in international equity ETFs, per etf.com.
SPDR S&P 500 ETF Trust SPY, iShares MSCI USA Min Vol Factor ETF USMV, Industrial Select Sector SPDR XLI, iShares Core S&P 500 ETF IVV and PGIM Ultra Short Bond ETF PULS dominated the top creation list last week.
Wall Street wrapped up the last week with mixed performances. The Dow Jones industrial Average inched up 0.3% while the other two benchmarks fell. The S&P 500 Index slid 0.3% — marking its second consecutive week of decline — while the Nasdaq Composite Index dropped 0.7%. The decline was due to a series of negative news on the U.S. credit rating downgrade and multiple bank downgrades. The inflation data also added to the woes.
The underperformance in the tech-heavy Nasdaq Index was due to concerns that interest rates could rise further. As the tech sector relies on easy borrowing for superior growth and its value depends heavily on future earnings, a rise in rates lowers the present value of companies’ future earnings, sparking fears of overvaluation.
We have detailed the ETFs below:
SPDR S&P 500 ETF Trust (SPY)
SPDR S&P 500 ETF Trust is the top asset creator, pulling in $3.8 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 assets. SPDR S&P 500 ETF Trust is heavy on the information technology sector with a 27.2% share, while healthcare, financials and consumer discretionary round off the next three spots with a double-digit allocation each.
SPDR S&P 500 ETF Trust charges investors 9 bps in annual fees and trades in an average daily volume of 66 million shares. It has AUM of $418.1 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
iShares MSCI USA Min Vol Factor ETF (USMV)
iShares MSCI USA Min Vol Factor ETF has gathered $29.3 million in its asset base. It offers exposure to the stocks that have historically declined less than the market during downturns by tracking the MSCI USA Minimum Volatility Index. It holds 171 stocks in its basket, with none accounting for more than 1.8% of the assets. Information technology takes the top spot at 23.1%, while healthcare, financials and consumer staples round off the next three spots.
With AUM of $29.3 billion, iShares MSCI USA Min Vol Factor ETF charges 15 bps in annual fees and trades in a solid average daily volume of 2.3 million shares. USMV has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Industrial Select Sector SPDR (XLI)
Industrial Select Sector SPDR saw an inflow of $587.6 million. It targets the broad industrial sector and follows the Industrial Select Sector Index. XLI holds 75 stocks in its basket and is well spread out across sectors, with machinery, aerospace & defense, industrial conglomerates, and ground transportation making up for a double-digit share each.
Industrial Select Sector SPDR is the most popular ETF with AUM of $16 billion and an average daily volume of around 9.5 million shares. It charges 10 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares Core S&P 500 ETF (IVV)
iShares Core S&P 500 ETF pulled in $537.7 million in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 7.1% of assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while healthcare, financials and consumer discretionary round off its next two 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 $348.8 billion and a Zacks ETF Rank #2 with a Medium risk outlook.
PGIM Ultra Short Bond ETF (PULS)
PGIM Ultra Short Bond ETF has gathered $521.3 million in its asset base. It is an actively managed ETF that seeks total return through a combination of current income and capital appreciation, consistent with the preservation of capital. PULS holds 514 bonds in its basket with an average maturity of 1.3 years and an effective duration of 0.3 years.
PGIM Ultra Short Bond ETF has AUM of $5.1 billion and charges 15 bps in annual fees. It trades in volume of 991,000 shares a day on average.
SPDR S&P 500 ETF (SPY): ETF Research Reports
Industrial Select Sector SPDR ETF (XLI): ETF Research Reports
iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
PGIM Ultra Short Bond ETF (PULS): ETF Research Reports
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