Yahoo Finance 5 ETFs That Gained Investors' Love Amid Market Turmoil
Last week, ETFs pulled in $7 billion in capital. U.S. equity led the way higher with $7 billion in inflows, closely followed by $3.9 billion in U.S. fixed-income ETFs and $581 million in international fixed-income ETF, per etf.com.
As such, SPDR S&P 500 ETF Trust SPY, SPDR Bloomberg 1-3 Month T-Bill ETF BIL, iShares Core S&P 500 ETF IVV, iShares 20+ Year Treasury Bond ETF TLT and Invesco QQQ Trust QQQ dominated the top creation list last week.
The inflows came despite a rough week for stock markets. The Dow Jones wrapped its worst weekly performance since June, falling 4.4%. The S&P 500 dropped 4.5%, while the Nasdaq lost 4.7%. Wall Street took a huge beating following the biggest bank failure since the global financial crisis. The tech-focused lender Silicon Valley Bank shut down following losses in its bond portfolio, prompting the biggest bank failure since the global financial crisis and sending shockwaves not only through the banking sector but across the globe.
Additionally, rounds of strong economic data and the prevalent inflation have put a steeper-than-expected rate hike back on the table. Fed Chair Jerome Powell turned hawkish during his testimony to the Senate Banking Committee and opened the door to a half-point rate hike in March. The central bank would likely raise its key interest rate higher than anticipated and could resume larger hikes, citing a recent surge in job growth and inflation after slowing the pace in recent months (read: 4 Top Sector ETFs to Gain as Fed Signals Faster Rate Hikes).
The bank stocks turmoil overshadowed the February jobs report, which signals that inflation might be slowing. Though the U.S. economy added robust 311,000 jobs in February, the unemployment rate rose to 3.6% from 3.4%. Average hourly earnings rose 4.6% from a year ago, below the estimated 4.8%. The monthly increase of 0.2% was also below the 0.4% market expectations.
We have detailed the ETFs below:
SPDR S&P 500 ETF Trust (SPY)
SPDR S&P 500 ETF Trust is the top asset creator, pulling in $5.2 billion in capital. It tracks the S&P 500 Index and holds 503 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 with a 28% share, while healthcare, financials and consumer discretionary 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 74.7 million shares. It has AUM of $353.6 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)
SPDR Bloomberg 1-3 Month T-Bill ETF saw an inflow of $933.4 million last week. It seeks to provide exposure to 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 0.13 years each.
SPDR Bloomberg 1-3 Month T-Bill ETF has AUM of $27.5 billion and an average daily volume of 7 million shares. It charges 13 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares Core S&P 500 ETF (IVV)
iShares Core S&P 500 ETF has accumulated $964.6 million in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for no more than 7% of assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while healthcare and financials round off its next two spots with a double-digit allocation each (read: Bank ETFs Tumble on Silicon Valley Bank Carnage).
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 AUM of $293.9 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares 20+ Year Treasury Bond ETF (TLT)
iShares 20+ Year Treasury Bond ETF gathered $843.6 million in capital. It provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Year Bond Index. iShares 20+ Year Treasury Bond ETF holds 35 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.58 years and an effective duration of 17.73 years.
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $31.4 billion and an average daily volume of 18 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #4 (Sell) with a High risk outlook.
Invesco QQQ Trust (QQQ)
Invesco QQQ saw an inflow of $657 million in capital. QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is heavily concentrated on the top two firms with a double-digit allocation, while other firms hold no more than 6% of assets. The product is also heavily tilted toward information technology at 51.1%, while communication services and consumer discretionary round off the next two spots (read: 5 Stocks That Powered Nasdaq ETF Last Week).
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $156.5 billion and an average daily volume of 48.7 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
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iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
SPDR Bloomberg 1-3 Month T-Bill ETF (BIL): ETF Research Reports
