Weekly ETF Roundup: International Tops, Nasdaq & Gold Bleed

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Overall, ETFs gathered about $12.5 billion capital last week, bringing in year-to-date inflows of $164.9 billion, higher than $86.9 billion seen in the year-ago period. International equity ETFs led the way higher last week with $5.9 billion inflows, closely followed by $3.3 billion in U.S. fixed-income ETFs and $3.3 billion in U.S. equity ETFs, per etf.com.

International ETFs Rock

Vanguard FTSE Emerging Markets ETF (VWO - Free Reporttopped the creation list, pulling in more than $1.2 billion of capital last week. This was followed by iShares Core MSCI Emerging Markets ETF (IEMG - Free Reportwith inflows of more than $1 billion. Both funds offer exposure to emerging markets and has a Zacks ETF Rank #3 (Hold).

According to data compiled by Bloomberg, VWO has received more money in the past five days through Thursday than any of the 2,400 plus funds in U.S. exchanges, pushing the ETF toward its biggest weekly inflow in two years. Many analysts are bullish on the emerging market equities and have raised their estimates for emerging market equities, citing that these are the prime beneficiaries of the post-coronavirus economic rebound.

Money managers from Ashmore Group to JPMorgan Chase and UBS Group attributed their optimism to Asia’s relative success in containing the pandemic, vaccine breakthroughs in China, India, and Russia, renewed demand for commodities, and Joe Biden’s $1.9 trillion stimulus plan. Additionally, emerging-market equities trade at an almost 29% discount to U.S. stocks compared with an average of 25% in the past 15 years.

Small-Cap and Financial Tops

iShares Russell 2000 ETF (IWM - Free Reportand Financial Select Sector SPDR Fund (XLF - Free Reportgathered more than $1 billion in assets each. IWM provides exposure to the small-cap corner of the broad stock market while XLF targets the financial segment. The duo has a Zacks ETF Rank #3.

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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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