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5 Hot ETFs of Last Week


Overall, ETFs pulled in $8.5 billion capital in the week ended Nov 9, pushing year-to-date inflows to $574.4 billion. U.S. equity ETFs led the way higher with $5.2 billion in inflows, closely followed by $1.8 billion in U.S. fixed-income ETFs and $708 million in international equity ETFs, per etf.com.

As such, SPDR S&P 500 ETF Trust SPY, Invesco QQQ Trust QQQ, Vanguard S&P 500 ETF VOO, iShares Core U.S. Aggregate Bond ETF AGG and iShares Russell 1000 Growth ETF IWF dominated the top creation list last week.

After a strong start to December, Wall Street struggled to find footing as bouts of solid economic data have dampened hopes for the Fed’s slower pace of rate hikes. The S&P 500 fell 3.4%, while the Dow lost 2.8% last week. The tech-heavy Nasdaq Composite Index declined 4%.

A stronger-than-expected November report on producer prices aggravated fears about the Federal Reserve’s interest rate hikes, following a stronger-than-expected November jobs report and a robust services sector report. The producer price index climbed 0.3% for the third month and was up 7.4% from a year ago.

The economy added 263,000 jobs in November, marking another strong month of job growth. The unemployment rate remained at 3.7%, close to a 50-year low, while average hourly earnings jumped 0.6% from the prior month and 5.1% from the year-ago month. Higher wages should add to inflation. Meanwhile, business activity jumped the most since March 2021 in November, suggesting that the largest part of the economy remains resilient. ISM’s gauge of services rose to 56.5 last month from 54.4 in October (read: 4 Sector ETFs to Play Upbeat November Jobs Data).

Further, consumer sentiment improved in early December, with the University of Michigan’s Consumer Confidence Index rising to 59.1 from 56.8 in November.

We have detailed the ETFs below:

SPDR S&P 500 ETF Trust (SPY)

SPDR S&P 500 ETF Trust topped asset flow creation last week, gathering $1.2 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 26.3% 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 75.5 million shares. It has AUM of $372.4 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

Invesco QQQ Trust (QQQ)

Invesco QQQ gathered about $940 million in its asset. QQQ provides exposure to the 102 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 5% of assets. The product is also heavily tilted toward information technology at 50.7%, while communication services and consumer discretionary round off the next two spots.

Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $157.3 billion and an average daily volume of 55 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.

Vanguard S&P 500 ETF (VOO)

Vanguard S&P 500 ETF has accumulated $629.8 million in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, each accounting for more than 7% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while healthcare, financials and consumer discretionary round off its next three spots with a double-digit allocation each (read: A Guide to the 25 Cheapest ETFs).

Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 3.8 million shares. It has AUM of $271.7 billion and a Zacks ETF Rank #3 with a Medium-risk outlook.

iShares Core U.S. Aggregate Bond ETF (AGG)

iShares Core U.S. Aggregate Bond ETF saw an inflow of $583.5 million last week. It offers broad exposure to U.S. investment-grade bonds by tracking the Bloomberg US Aggregate Bond Index. iShares Core U.S. Aggregate Bond ETF holds 10,571 securities in its basket with an average maturity of 8.75 years and an effective duration of 6.41 years (read: “Bonds Are Back”: ETF Strategies to Follow).

iShares Core U.S. Aggregate Bond ETF has AUM of $82.4 billion and an average daily volume of 7.2 million shares. It charges 3 bps in annual fees.

iShares Russell 1000 Growth ETF (IWF)

iShares Russell 1000 Growth ETF pulled in $561 million in capital, propelling its AUM to nearly $61.3 billion. It provides exposure to large and mid-capitalization U.S. equities that exhibit growth characteristics by tracking the Russell 1000 Growth Index. iShares Russell 1000 Growth ETF holds 512 securities in its basket with a tilt toward the information technology sector, while consumer discretionary and healthcare receive double-digit exposure each.

iShares Russell 1000 Growth ETF trades in heavy volume of around 2 million shares a day on average and charges 18 bps in annual fees. It has a Zacks ETF Rank #3 with a Medium risk outlook.

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Invesco QQQ (QQQ): ETF Research Reports

SPDR S&P 500 ETF (SPY): ETF Research Reports

Vanguard S&P 500 ETF (VOO): ETF Research Reports

iShares Core U.S. Aggregate Bond ETF (AGG): ETF Research Reports

iShares Russell 1000 Growth ETF (IWF): ETF Research Reports

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Zacks Investment Research



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