5 Hot ETFs Of A Tumultuous Week

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Overall, ETFs pulled in $24.5 million in capital last week, taking year-to-date inflows to $196.4 billion. U.S. equity ETFs led the way higher with $11 million in inflows, followed by inflows of $6.3 million in U.S. fixed-income ETFs and $3.2 million in international fixed-income ETFs.

Vanguard S&P 500 ETF (VOO - Free Report), Invesco S&P 500 Equal Weight ETF (RSP - Free Report), Invesco QQQ Trust (QQQ - Free Report), Fidelity Total Bond ETF (FBND - Free Report) and SPDR Bloomberg 1-3 Month T-Bill ETF (BIL - Free Report) dominated the creation list last week.

The three major indices capped weekly losses, with the S&P 500 shedding 1.5%, marking its worst week since October 2023. The Dow Jones suffered its biggest weekly percentage loss since March 2023, shedding 2.5%, while the Nasdaq Composite Index dropped 0.6%. Escalating geopolitical tensions and inflation worries shook Wall Street last week. A broad decline in major bank shares after quarterly earnings failed to impress added to the chaos.

Iran launched a barrage of missiles and drones on Israel over the weekend, heightening fears of a wider conflict in the Middle East. The conflict will lead to a spike in oil prices, which could flare up inflation, leading the Fed to go slow on rate cuts. Additionally, the bouts of upbeat economic data point to a stronger economy, dialing back expectations for rate cuts in the first half of this year.

The three major banks — JPMorgan Chase & Co (JPM - Free Report), Citigroup (C - Free Report), and Wells Fargo (WFC - Free Report) — disappointed investors. JPMorgan’s net interest income came in below analysts' expectations. Wells Fargo reported a 7% drop in profits, following a decline in net interest income caused by poor borrowing demand, while Citigroup experienced a loss following expenses on employee termination and deposit insurance.

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 $2.8 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 7.1% of the assets. Vanguard S&P 500 ETF is heavy on the information technology sector, while consumer discretionary, industrials and healthcare round off the next three spots with a double-digit allocation each.

Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 5 million shares. It has AUM of $432 billion and a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.

Invesco S&P 500 Equal Weight ETF (RSP)

Invesco S&P 500 Equal Weight ETF has gathered $2.7 billion in capital. It tracks the S&P 500 Equal Weight Index, which equally weights the stocks in the S&P 500 Index. It holds 504 stocks in its basket and charges 20 bps in annual fees.

Invesco S&P 500 Equal Weight ETF has amassed $55.8 billion in its asset base. It trades in an average daily volume of 6 million shares and has a Zacks ETF Rank #3 (Hold).

Invesco QQQ Trust (QQQ)

Invesco QQQ Trust has accumulated $1 billion in capital. It provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ has a modest concentration on the top firms.

Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $257.6 billion and an average daily volume of 41.6 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

Fidelity Total Bond ETF (FBND)

Fidelity Total Bond ETF raked in $998 million in capital last week. It is an actively managed ETF and invests at least 80% of its assets in debt securities of all types and repurchase agreements for those securities. Fidelity Total Bond ETF holds 599 stocks in its basket.

Fidelity Total Bond ETF has AUM of $8.8 billion and charges 36 bps in annual fees.

SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)

SPDR Bloomberg 1-3 Month T-Bill ETF saw an inflow of $910 million last week. It seeks to provide exposure to zero-coupon U.S. Treasury securities with a remaining maturity of 1-3 months. It follows the Bloomberg 1-3 Month U.S. Treasury Bill Index, holding 19 securities in its basket. Both average maturity and adjusted duration are at 0.12 years each.

SPDR Bloomberg 1-3 Month T-Bill ETF has AUM of $32 billion and an average daily volume of 7 million shares. It charges 13 bps in annual fees and 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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