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ETFs across various categories pulled in $29.5 billion in capital last week, pushing year-to-date inflows to $162.5 billion. U.S. equity ETFs led the way with $12 billion in inflows, followed by $5.82 billion in international fixed-income ETFs and $5.79 billion in U.S. fixed-income ETFs.
Invesco QQQ Trust QQQ, SPDR Gold Trust ETF GLD, SPDR S&P 500 ETF Trust SPY, Vanguard S&P 500 ETF VOO and iShares 0-3 Month Treasury Bond ETF SGOV dominated the top creation list last week.
Wall Street wrapped up the last week with losses. The Dow Jones Industrial Average, which emerged stronger than the other two major indices this year, had its biggest weekly drop since October, losing 2.5%. The S&P 500 and the Nasdaq Composite fell 1.7% and 2.25%, respectively (read: 5 Stocks in the Dow ETF That Survived the Worst Week Since October).
A barrage of economic data last week has sparked concerns over economic growth. U.S. business activity nearly stalled in February due to growing fears over tariffs on imports and deep cuts in federal government spending. Consumer sentiment dropped as inflation roared back. The University of Michigan consumer sentiment index fell to a 15-month low of 64.7 in February, down from a final reading of 71.7 in January. Homebuilder sentiment hit a five-month low in February. Concerns are building up in the homebuilder space that tariffs would raise the cost of building materials, including lumber and appliances, thereby leading to elevated home prices and reduced affordability.
Further, consumers' 12-month inflation expectations deteriorated to 4.3%, the highest reading since November 2023, from 3.3% in January. Over the next five years, consumers expect inflation to be 3.5%, the highest since 1995, compared with 3.2% in January, according to the latest survey.
Renewed concerns about economic growth and Trump’s tariff threat have turned investors to defensive plays. Gold and short-term Treasuries act as a hedge amid uncertain market conditions. Dividend ETFs also saw strong demand as these can provide a consistent income stream amid volatility.
We have detailed the ETFs below:
Invesco QQQ Trust (QQQ)
Invesco QQQ Trust is the top asset creator, pulling in $4.3 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 $641.6 billion and an average daily volume of 27 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
SPDR Gold Trust ETF (GLD)
SPDR Gold Trust ETF has gathered $3.9 billion in its asset base. It tracks the price of gold bullion measured in U.S. dollars and kept in London under the custody of HSBC Bank USA. GLD is an ultra-popular gold ETF with an AUM of $83.4 billion and a heavy volume of about 7 million shares a day. SPDR Gold Trust ETF charges 40 bps in fees per year from investors and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Gold Rally to Continue: Leveraged ETFs to Make Profits).
SPDR S&P 500 ETF Trust (SPY)
SPDR S&P 500 ETF Trust has accumulated $1.8 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 31.7% 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 40 million shares. It has an AUM of $635.5 billion and a Zacks ETF Rank #2 with a Medium risk outlook.
Vanguard S&P 500 ETF (VOO)
Vanguard S&P 500 ETF gathered $1.7 billion in its asset base last week. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 7% 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 $635.5 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 (read: ETF Investors Crown a New King).
iShares 0-3 Month Treasury Bond ETF (SGOV)
iShares 0-3 Month Treasury Bond ETF accumulated $1.1 billion in its asset base last week. It offers exposure to U.S. Treasury bonds with remaining maturities less than or equal to three months. iShares 0-3 Month Treasury Bond ETF follows the ICE 0-3 Month US Treasury Securities Index with an average maturity of 0.10 years and an effective duration of 0.09 years.
iShares 0-3 Month Treasury Bond ETF has AUM of $35.1 billion and trades in an average daily volume of 7 million shares. SGOV charges 9 bps in annual fees and has a Zacks ETF Rank #3.