Equity Dominates ETF Inflows At The Start Of 2025

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ETF inflows started 2025 with a bang as investors poured in 31.7 billion in capital last week in funds across various categories. U.S. equity ETFs led the way with $25.2 billion in inflows, followed by inflows of $3.9 billion in U.S. fixed-income ETFs and $2.5 billion in international equity ETFs.

Invesco QQQ Trust (QQQ - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) , SPDR S&P 500 ETF Trust (SPY - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) and Fidelity Blue Chip Growth ETF (FBCG - Free Report) dominated the top creation list last week.

Wall Street registered losses last week, with the S&P 500 and Dow Jones declining about 1% each. The Nasdaq Composite Index dropped 2%. The resurgence in tech stocks at the end of the week was unable to offset the losses in the earlier part of the week. The losses were due to concerns about high valuations, rising Treasury yields and thin liquidity. Tesla (TSLA - Free Report) and NVIDIA (NVDA - Free Report) contributed to a tech comeback, rising 8% and 4%, respectively, on the last day of the week.

On the data docket, U.S. manufacturing activity showed signs of improvement in the final month of 2024. This is especially true as the Institute for Supply Management (ISM) said its manufacturing PMI increased to 49.3 last month, the highest reading since March, from 48.4 in November. This suggests that production is rebounding and orders are rising, indicating the good health of the economy. 

We have detailed the ETFs below:

Invesco QQQ Trust (QQQ)

Invesco QQQ Trust is the top asset creator, pulling in $6.5 billion in capital. It provides exposure to the 31 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $318.8 billion and an average daily volume of 26 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

Vanguard S&P 500 ETF (VOO)

Vanguard S&P 500 ETF gathered $5.3 billion in its asset base last week. It tracks the S&P 500 Index and holds 504 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 financials, consumer discretionary, 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. It has AUM of $584.1 billion and trades in average daily volume of 5 million shares. VOO has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.

SPDR S&P 500 ETF Trust (SPY)

SPDR S&P 500 ETF Trust has accumulated $4.6 billion in its asset base. It tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 7.3% of the assets. SPDR S&P 500 ETF Trust is heavy on the information technology sector with a 32.6% share, while financials, consumer discretionary and healthcare round off the next three 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 39 million shares. It has an AUM of $624.5 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 gathered $1.3 billion in assets. It tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 7.3% of the assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while financials, consumer discretionary and healthcare 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 and trades in an average daily volume of 4 million shares. It has an AUM of $586.1 billion and a Zacks ETF Rank #1 with a Medium risk outlook.

Fidelity Blue Chip Growth ETF (FBCG)  

Fidelity Blue Chip Growth ETF saw an inflow of $941.7 million. It invests in blue-chip companies (well-known, well-established and well-capitalized), which generally have large or medium market capitalizations. These companies have above-average growth potential (stocks of these companies are often called "growth" stocks). Fidelity Blue Chip Growth ETF holds 236 securities in its basket with double-digit exposure in the top two firms. With AUM of $3.8 billion, the ETF charges 59 bps in annual fees and trades in an average daily volume of 473,000 shares.


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