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Last week (from Dec 31-Jan 6), ETFs overall gathered about $24 billion capital, up $7.1 billion inflows recorded in the first week of 2021. U.S. equity ETFs led the way higher last week with $18.3 billion inflows, closely followed by $3.1 billion in international equity ETFs and $1.1 billion in international equity ETFs, per etf.com.

SPDR S&P 500 ETF Trust (SPY - Free Report), iShares Core S&P 500 ETF (IVV - Free Report), Vanguard Total Stock Market ETF (VTI - Free Report), ProShares UltraPro QQQ (TQQQ - Free Report) and Financial Select Sector SPDR Fund (XLF - Free Report) dominated the top creation list last week.

Stock Market Synopsys

Wall Street wrapped up the first week of the New Year on a sour note. The S&P 500 posted the worst start to a year since 2016 while Nasdaq had the worst week since February, knocked down by Fed’s hawkish view and a rapid surge in the Omicron COVID-19 cases.

The latest Fed minutes signaled three rate increases this year and three in the following year as inflation concerns deepened. The probabilities of a March interest rate hike of 0.25% surged to 72%, according to fed futures trading contracts. Additionally, the central bank is expected to increase the pace of scaling back monthly bond purchases this month, a move that has pushed the yields higher.

The surge in yields led to a sell-off in the growth and high-beta sectors that has spread to the broad U.S. stock market despite the strong start to 2022.

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 $4.2 billion in capital. It tracks the S&P 500 Index and holds 505 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, consumer discretionary, financials and communication services round off the next four 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 66 million shares. It has AUM of $450.6 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

iShares Core S&P 500 ETF (IVV)

iShares Core S&P 500 ETF has pulled in $1.8 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 7% of assets. IVV is heavy on the information technology sector, while healthcare, consumer discretionary, financials and communication round off its next four spots with a double-digit allocation each.

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 $337.5 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

Vanguard Total Stock Market ETF (VTI)

Vanguard Total Stock Market ETF has gathered $1.1 billion in capital, taking its total AUM to $300.9 billion. It provides exposure to the broader stock market by tracking the CRSP US Total Market Index. Vanguard Total Stock Market ETF holds a large basket of well-diversified 4,156 stocks with key holdings in technology, consumer discretionary, industrials, healthcare, and financials.

Vanguard Total Stock Market ETF charges 3 bps in fees per year from investors and trades in an average daily volume 3.7 million shares. VTI has a Zacks ETF Rank #2 with a Medium risk outlook.

ProShares UltraPro QQQ (TQQQ)

ProShares UltraPro QQQ gathered $1.1 billion in capital last week. It offers thrice the returns of its daily performance of the NASDAQ-100 Index, charging 95 bps in annual fees.

ProShares UltraPro QQQ has $19.3 billion in AUM and trades in a heavy volume of 47.3 million shares, on average.

Financial Select Sector SPDR Fund (XLF)

The ultra-popular Financial Select Sector SPDR Fund accumulated $980.4 million last week. It seeks to provide exposure to 67 companies in banks, capital markets, insurance, diversified financial services, and consumer finance.

Financial Select Sector SPDR Fund has AUM of $46.9 billion and charges 12 bps in annual fees. It trades in an average daily volume of 54.2 million shares and carries a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.