5 ETFs That Gained Investors' Love Last Week

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The start of the second quarter has been good for Wall Street as the Dow Jones and the S&P 500 reached a series of record highs last week. The S&P 500 logged in the third consecutive week of gains for the first time in nearly six months, advancing 2.7%. Meanwhile, the Dow Jones and the Nasdaq Composite Index gained 2% and 3.1%, respectively.

The rally came on the back of a rebound in technology stocks as investors focused on prospects for an economic rebound, shrugging off concerns over inflation. The 10-year U.S. Treasury yield pulled back from a 14-month high hit in late March that has encouraged buying of growth stocks. Additionally, faster vaccine deployment continued progress in more vaccines, and a fresh round of stimulus continued to bolster investors’ confidence.

Adding to the strength is the optimism surrounding the corporate earnings season. The overall earnings picture continues to improve — a trend that will accelerate toward the summer months as signs of a sharp economic rebound emerge. Total Q1 2021 earnings are expected to be up 20.6% from the year-ago level on 5.6% higher revenues with a combination of easy comparisons and strong gains in a number of sectors, per the Earnings Trends.

Given this, overall ETFs gathered about $14.4 billion capital last week, bringing in year-to-date inflows of $269 billion, well ahead the $92.4 billion seen in the year-ago period. U.S. equity ETFs led the way higher last week with $6.6 billion inflows, closely followed by $3.7 billion in international equity ETFs and $3 billion in U.S. fixed income, per etf.com.

As such, a few ETFs garnered solid investor interest last week and will continue to be their darlings should the current market trends prevail. Below we have highlighted five of them:

iShares iBoxx $ High Yield Corporate Bond ETF (HYG - Free Report)

HYG unexpectedly topped the asset flow creation last week, gathering $1.5 billion in capital. The popularity comes on the heels of a decline in yields. This ETF offers exposure to a broad range of U.S. high-yield corporate bonds by tracking the Markit iBoxx USD Liquid High Yield Index. Holding 1,301 securities, effective duration and average maturity come in at 3.66 and 3.75 years, respectively. HYG is one of the most widely used high-yield bond ETFs with AUM of $23 billion and an average daily volume of 29.1 million shares. It charges 49 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High risk outlook.

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