5 ETFs That Gained Investors' Love Last Week
Overall, ETFs pulled in $8.2 billion in capital in the week ended Jan 27. International equity ETFs led the way higher with $7.5 billion in inflows, closely followed by $1.4 billion in international fixed-income ETFs and $1 billion in inverse ETFs, per etf.com.
As such, JPMorgan BetaBuilders Europe ETF BBEU, SPDR S&P 500 ETF Trust SPY, iShares iBoxx $ Investment Grade Corporate Bond ETF LQD, JPMorgan Equity Premium Income ETF JEPI and ProShares UltraPro Short QQQ SQQQ dominated the top creation list last week.
International stocks have been performing better than the U.S. stocks. These offer more enticing valuations after a long period of U.S. dominance. Additionally, a weak dollar is providing a boost to international stocks. The U.S. dollar against a basket of currencies has been on a downtrend this year, with the US Dollar Index hovering at a seven-month low after peaking at a 20-year high last September.
The weak trend is likely to continue, given the higher speculation over the Fed’s slower rate hike. This is because a strong greenback generally eats away foreign investment gains when repatriated in U.S. dollar terms. Additionally, the reopening of China after a speedy Zero-Covid policy exit should fuel growth globally.
We have given details of the ETFs below:
JPMorgan BetaBuilders Europe ETF (BBEU)
JPMorgan BetaBuilders Europe ETF topped asset flow creation last week, gathering $2.5 billion in capital. It provides investors exposure to developed European equity markets by tracking the Morningstar Developed Europe Target Market Exposure Index, which is a free-float adjusted, market-cap weighted index consisting of stocks traded on the primary exchanges in developed countries across Europe (read: Winning Europe ETFs to Start 2023).
Holding 513 stocks in its basket, JPMorgan BetaBuilders Europe ETF has amassed $6.7 billion in its asset base and charges 9 bps in fees from investors. It trades in a heavy volume of nearly 1.6 million shares a day on average and has a Zacks ETF Rank #4 (Sell).
SPDR S&P 500 ETF Trust (SPY)
SPDR S&P 500 ETF Trust pulled in $1.6 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 6.4% of assets. SPDR S&P 500 ETF Trust is heavy on the information technology sector with a 26.7% 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 68.3 million shares. It has AUM of $379.7 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
iShares iBoxx $ Investment Grade Corporate Bond ETF gathered $937.4 million in capital. It offers exposure to a broad range of U.S. investment-grade corporate bonds by tracking the Markit iBoxx USD Liquid Investment Grade Index. iShares iBoxx $ Investment Grade Corporate Bond ETF holds 2,581 securities in its basket with an effective duration of 8.56 years and an average maturity of 13.07 years (read: Bond ETFs Emerging Popular to Start 2023: Here's Why).
iShares iBoxx $ Investment Grade Corporate Bond ETF has AUM of $40.7 billion and trades in an average daily volume of 17 million shares. LQD charges 14 bps in annual fees and has a Zacks ETF Rank #3 with a High risk outlook.
JPMorgan Equity Premium Income ETF (JEPI)
JPMorgan Equity Premium Income ETF has accumulated $894 million in capital. It seeks to provide current income while maintaining prospects for capital appreciation. JPMorgan Equity Premium Income ETF generates income through a combination of selling options and investing in U.S. large-cap stocks, seeking to deliver a monthly income stream from associated option premiums and stock dividends.
JPMorgan Equity Premium Income ETF has AUM of $19.6 billion and charges 35 bps in annual fees. The product trades in an average daily volume of 3.8 million shares.
ProShares UltraPro Short QQQ (SQQQ)
ProShares UltraPro Short QQQ saw an inflow of $858 million last week. It provides three times inverse exposure to the daily performance of the Nasdaq-100 Index, charging 95 bps in annual fees. The index measures the performance of the 100 largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization (read: ETFs to Play Nasdaq's Fastest Start Since 2019).
ProShares UltraPro Short QQQ has AUM of $4.8 billion and trades in an average daily volume of about 103 billion shares.
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SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD): ETF Research Reports
ProShares UltraPro Short QQQ (SQQQ): ETF Research Reports
JPMorgan BetaBuilders Europe ETF (BBEU): ETF Research Reports
JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports
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