5 ETFs That Gained Investors Love In February

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Overall, ETFs pulled in $58.7 billion in capital last month, taking year-to-date inflows to $89.8 billion. U.S. equity ETFs led the way higher with $34.4 billion in inflows, followed by inflows of $10.3 billion in international equity ETFs and $9.9 billion in U.S. fixed-income ETFs.

Vanguard S&P 500 ETF (VOO - Free Report), Vanguard Information Technology ETF (VGT - Free Report), BlackRock's iShares Bitcoin Trust (IBIT - Free Report), iShares Core S&P 500 ETF (IVV - Free Report) and Vanguard Intermediate-Term Treasury ETF (VGIT - Free Report) dominated the creation list last week.

The U.S. stocks wrapped up the strongest month, with the S&P 500 and the Nasdaq Composite Index recording the best month in nearly a decade. The Dow Jones Industrial Average also logged a four-month winning streak for the first time since May 2021. For the month, the Nasdaq gained 6.1%, while the S&P 500 added 5.2%. The Dow Jones was up 2.1%.

The stock market was powered by strong quarterly earnings, economic resiliency and the technology sector’s surge. Companies listed on the S&P 500 have reported stronger-than-expected earnings, indicating robust financial health and operational efficiency.

The resilience of the U.S. economy has been playing a crucial role in the S&P 500's ascent, though it has reduced the likelihood of a near-term rate cut. Factors such as robust retail sales, consumer sentiment and a cooling trend in the producer price index indicate the possibility of the Fed achieving a soft landing, bringing inflation back to target without triggering a recession. This economic resilience, coupled with surging shares of big technology companies and optimism over artificial intelligence, has been a significant driver of the market's upward trajectory.

We have detailed the ETFs below:

Vanguard S&P 500 ETF (VOO)

Vanguard S&P 500 ETF topped the asset flow creation last month, gathering $6.1 billion in capital. It tracks the S&P 500 Index and holds 505 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 consumer discretionary, healthcare and industrials round off the next three spots with a double-digit allocation each.

Vanguard S&P 500 ETF charges investors 3 bps in annual fees. It has AUM of $413.4 billion and a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
  
Vanguard Information Technology ETF (VGT)

Vanguard Information Technology ETF has accumulated $5.7 billion in its asset base last month. It provides exposure to 312 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Systems software, technology hardware storage & peripheral, semiconductors and application software are the top four sectors.

With AUM of $64.7 billion, Vanguard Information Technology ETF has an expense ratio of 0.10% and has a Zacks ETF Rank #1 with a Medium risk outlook.

iShares Bitcoin Trust (IBIT)

iShares Bitcoin Trust raked in $4.5 billion in capital last month. It seeks to reflect the performance of the price of Bitcoin. It enables investors to access Bitcoin within a traditional brokerage account. The fund charges 25 bps in annual fees from investors. However, the fee is set to be 0.12% for the first 12 months or on the first $5 billion in assets.

iShares Bitcoin Trust has AUM of $10 billion.  

iShares Core S&P 500 ETF (IVV)

iShares Core S&P 500 ETF gathered $4.1 billion in capital last month. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 7.1% of the assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while financials, healthcare and consumer discretionary 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. It has an AUM of $446.3 billion and a Zacks ETF Rank #1 with a Medium risk outlook.

Vanguard Intermediate-Term Treasury ETF (VGIT)

Vanguard Intermediate-Term Treasury ETF saw inflows of $3.3 billion. It seeks to track the performance of the Bloomberg US Treasury 3-10 Year Bond Index. Vanguard Intermediate-Term Treasury ETF offers exposure to the U.S. Treasury obligations with remaining maturities of 3 to 10 years, holding 109 stocks in its basket. Effective maturity and average duration come in at 5.6 years and 5 years, respectively.

Vanguard Intermediate-Term Treasury ETF has AUM of $25.2 billion and charges 4 bps in fees per year on average. It has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.


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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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