Last week, ETFs pulled in $27.2 billion in capital, pushing year-to-date inflows to $558.7 billion. U.S. equity ETFs led the way higher with $13.4 billion in inflows, closely followed by $9.2 billion in U.S. fixed-income ETFs and $3.9 billion in international equity ETFs, per etf.com.
As such, SPDR S&P 500 ETF Trust SPY, iShares Core S&P 500 ETF IVV, iShares 20+ Year Treasury Bond ETF TLT, Vanguard Short-Term Corporate Bond ETF VCSH and iShares iBoxx $ Investment Grade Corporate Bond ETF LQD dominated the top creation list last week.
Wall Street slumped last week as hawkish comments from Fed officials renewed worries over the aggressive rate hikes. The S&P 500 slipped 0.7% last week, while the technology-heavy Nasdaq Composite Index tumbled 1.6%. Bets of a 75-bps hike at the Fed’s next meeting from traders climbed to 19% from about 15% a day earlier, according to the CME Group’s FedWatch tool.
Additionally, recessionary fears have resurfaced, leading to risk-off trading once again. Most of the decline came from the falling energy sector as renewed COVID-19 outbreaks in China and a weakening global growth outlook put pressure on oil prices. Further, China, which eased COVID restrictions a few days ago, might reinstitute some measures as infections ticked higher (read: Bet on China ETFs on a Solid Turnaround).
In the fixed-income space, the yield curve inverted further last week, marking the deepest inversion in over 40 years.
We have detailed the ETFs below:
SPDR S&P 500 ETF Trust (SPY)
SPDR S&P 500 ETF Trust topped asset flow creation last week, gathering $2.1 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% of assets. SPDR S&P 500 ETF Trust is heavy on the information technology sector, 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 83.5 million shares. It has AUM of $373.8 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
iShares Core S&P 500 ETF (IVV)
iShares Core S&P 500 ETF has accumulated $1.4 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 6.8% 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 three spots with a double-digit allocation each (read: 5 Best-Performing ETFs of Last Week).
iShares Core 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 $300.7 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares 20+ Year Treasury Bond ETF (TLT)
iShares 20+ Year Treasury Bond ETF pulled in $1.3 billion in capital last week. 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 32 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.37 years and an effective duration of 17.30 years.
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $26.2 billion and an average daily volume of 21.8 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook.
Vanguard Short-Term Corporate Bond ETF (VCSH)
Vanguard Short-Term Corporate Bond ETF topped asset flow creation last week, gathering $1.1 billion in capital. It offers exposure to the short-term investment-grade U.S. corporate bond market and tracks the Bloomberg U.S. 1–5 Year Corporate Bond Index. With AUM of $40.8 billion, Vanguard Short-Term Corporate Bond ETF holds 2374 bonds in its basket with an average maturity of 3.10 years and an average duration of 2.70 years (read: Bond ETF Investing Strategies for Rising Rate Environment).
Vanguard Short-Term Corporate Bond ETF charges investors 4 bps in fees per year and trades in an average daily volume of 7.5 million shares. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
iShares iBoxx $ Investment Grade Corporate Bond ETF gathered $883 million in capital. It offers exposure to a broad range of U.S. investment-grade corporate bonds by tracking the Markit iBoxx USD Liquid Investment Grade Index. iShares iBoxx $ Investment Grade Corporate Bond ETF holds 2,533 securities in its basket with an effective duration of 8.40 years and an average maturity of 13.10 years.
iShares iBoxx $ Investment Grade Corporate Bond ETF has AUM of $38.3 billion and trades in an average daily volume of 21.8 million shares. LQD charges 14 bps in annual fees and has a Zacks ETF Rank #3 with a High risk outlook.
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iShares 20 Year Treasury Bond ETF (TLT): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares iBoxx Investment Grade Corporate Bond ETF (LQD): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
Vanguard ShortTerm Corporate Bond ETF (VCSH): ETF Research Reports
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