5 ETFs That Saw Maximum Capital Inflows Last Week

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U.S. stocks gained last week on the prospect of a sustained rebound in the world’s largest economy that outweighed inflation worries. The blue-chip Dow Jones and the S&P 500 broke their two-week losing streak, jumping 0.9% and 1.2%, respectively, while the tech-heavy Nasdaq Composite Index rose 2.1%, marking the best weekly performance since Apr 9.

The gains were driven by a massive budget as President Biden unveiled his $6 trillion budget proposal. The proposal would invest heavily in Biden's top priority areas such as infrastructure, education, research, public health, paid family leave, and childcare. It includes the American Jobs Plan and the American Families Plan, the $4 trillion infrastructure, jobs, and economic proposal that the President had previously laid out and is negotiating with lawmakers. The budges also outlines additional funds to launch a new health research agency to focus on diseases like cancer, and funds to address gun violence, tackle the climate crisis, help end homelessness, and curb the opioid epidemic.

Meanwhile, the core personal consumption expenditures index increased by 3.1% in April from a year ago - the highest reading since 1992 and is sharply higher than the March reading of 1.9%.

The main attraction of the last week is also the European market. The MSCI Europe Index hit a record high last week, surpassing the previous peaks from the years 2000 and 2007. Economic confidence across the Eurozone has hit a three-year high, per the latest data, as optimism over the economic recovery rises.

Given this, overall ETFs gathered about $24.1 billion capital last week, bringing in year-to-date inflows of $393.5 billion, more than double the $137.9 billion seen in the year-ago period. U.S. equity ETFs led the way higher last week with $11.1 billion inflows, closely followed by $5 billion in international equity ETFs and $4 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:

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

SPY topped the asset flow creation last week, gathering $3 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket with each accounting for no more than 5.6% share. The fund is widely spread across sectors with information technology, healthcare, consumer discretionary, financials, and communication services being the top five, with a double-digit allocation each. SPY is the biggest ETF in the space with AUM of $357.3 billion and an expense ratio of 0.09%. It trades in an average daily volume of 70.3 million shares and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

Invesco QQQ (QQQ - Free Report)

This ETF accumulated around $2.8 billion in its asset base last week. This ETF provides exposure to the 102 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 47.9% of the assets while communication services and consumer discretionary make up at least 17% share each. QQQ is one of the largest and most popular ETFs in the large-cap space with an AUM of $160.9 billion and an average daily volume of 42.3 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 with a Medium risk outlook.

iShares Edge MSCI USA Quality Factor ETF (QUAL - Free Report)

This fund has accumulated $1.2 billion in capital, bringing its total AUM to $20.5 billion. It provides exposure to large and mid-cap stocks exhibiting positive fundamentals (high return on equity, stable year-over-year earnings growth and low financial leverage) by tracking the MSCI USA Sector Neutral Quality Index. It holds 126 stocks in its basket and charges 15 bps in annual fees. The ETF trades in an average daily volume of 973,000 shares.

JPMorgan BetaBuilders Europe ETF (BBEU - Free Report)

This fund saw asset inflows of $1.1 billion. It provides investors exposure to developed European equity markets by tracking the Morningstar Developed Europe Target Market Exposure Index, which is a free-float adjusted, market-cap weighted index consisting of stocks traded on the primary exchanges in developed countries across Europe. Holding 532 stocks in its basket, BBEU has amassed $8.1 billion in its asset base and charges 9 bps in fees from investors. It trades in a heavy volume of nearly 1.8 million shares a day on average.

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

VOO gathered $781.6 million in capital last week, taking its total AUM to $224.8 billion. It also tracks the S&P 500 Index, holding 507 stocks in its basket. The ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.9 million shares. It has a Zacks ETF Rank #2 with a Medium risk outlook.

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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