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5 Most-Loved ETFs of Last Week


Last week, ETFs pulled in about $17.6 billion in capital, pushing year-to-date inflows to $440.4 billion. U.S. equity ETFs led the way with $11.8 billion inflows, closely followed by $3 billion in U.S. fixed income and $1.9 billion in international equity, per etf.com.

As such, SPDR S&P 500 ETF Trust SPY, iShares U.S. Treasury Bond ETF GOVT, Vanguard Tax-Exempt Bond ETF VTEB, Vanguard Total Stock Market ETF VTI and iShares 20+ Year Treasury Bond ETF TLT dominated the top creation list last week.

Wall Street saw wild swings last week, with the major indices moving in opposite directions. The Dow Jones Industrial Average gained 1.1% in the week, while the S&P 500 and the Nasdaq Composite Index dropped 1.5% and 3.1%, respectively. After a powerful rally at the start of the week, the stocks lost momentum on hot inflation data, which would push the Federal Reserve toward another aggressive rate hike. And investors used a pullback in stocks to pick up some of their favorite ETFs.

The core consumer price index, which strips out volatile components, such as food and energy prices, climbed 6.6% year over year, marking the biggest annual increase in 40 years. The consumer price index rose 0.4% in September after rising 0.1% in August, twice the 0.2% projected by analysts, even as the annual rate slowed slightly to 8.2% from 8.3% (read: 4 Sector ETFs to Tap on Rising Inflation).

The hot data came amid soaring prices for shelter, food and medical care and pushed up chances of the Federal Reserve’s fourth 75 bps interest rate hike next month. Following the data, the S&P 500 climbed more than 5% from its intraday lows on Oct 13 and the Dow Jones Industrial Average surged 1,500 points from its intraday lows to the highest level, falling more than 500 points and then rose at least 800 points

Meanwhile, the 10-year U.S. Treasury yields soared above 4% last week while the U.S. dollar index neared 20-year highs after the data cemented the view of more rate hikes.

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 $4.6 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 7% of assets. SPDR S&P 500 ETF Trust is heavy on the information technology sector, while healthcare, financials, and consumer discretionary round off the next four 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 75.3 million shares. It has AUM of $327.1 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

iShares U.S. Treasury Bond ETF (GOVT)

iShares U.S. Treasury Bond ETF gathered $2.7 billion in capital. It offers exposure to the broad U.S. Treasury market with treasuries ranging from 1-30 year maturities by tracking the ICE US Treasury Core Bond Index. With AUM of $24.8 billion, iShares U.S. Treasury Bond ETF holds 130 bonds in its basket with a weighted maturity of 7.50 years and an effective duration of 5.95 years (read: 5 Treasury ETFs Gaining Investors’ Love This Year).

iShares U.S. Treasury Bond ETF charges investors 5 bps in fees per year and has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.

Vanguard Tax-Exempt Bond ETF (VTEB)

Vanguard Tax-Exempt Bond ETF has accumulated $1.5 billion in its asset base. It follows the S&P National AMT-Free Municipal Bond Index, which measures the performance of the investment-grade segment of the U.S. municipal bond market. Vanguard Tax-Exempt Bond ETF holds 6,330 bonds in its basket with an effective maturity of 13.5 years and an average duration of 6 years.

With AUM of $19.7 billion, Vanguard Tax-Exempt Bond ETF trades in a solid volume of around 7 million shares and has 0.05% in expense ratio. The product has a Zacks ETF Rank #4 with a Medium risk outlook.

Vanguard Total Stock Market ETF (VTI)

Vanguard Total Stock Market ETF pulled in $955.3 million in capital. It provides exposure to the broader stock market by tracking the CRSP US Total Market Index. Vanguard Total Stock Market ETF holds a large basket of well-diversified 4,066 stocks with key holdings in technology, consumer discretionary, healthcare, industrials and financials (read: 4 ETFs That Gained the Most On Wild Trading Day).

Vanguard Total Stock Market ETF charges 3 bps in fees per year from investors and trades in an average daily volume of 4.2 million shares. VTI has amassed $240.1 billion in its asset base and has a Zacks ETF Rank #3 with a Medium risk outlook.

iShares 20+ Year Treasury Bond ETF (TLT)

iShares 20+ Year Treasury Bond ETF pulled in $809.4 million in capital last week. 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 33 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.62 years and an effective duration of 17.42 years.

TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $24 billion and an average daily volume of 17.6 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook.

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iShares 20 Year Treasury Bond ETF (TLT): ETF Research Reports
 
SPDR S&P 500 ETF (SPY): ETF Research Reports
 
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
 
iShares U.S. Treasury Bond ETF (GOVT): ETF Research Reports
 
Vanguard TaxExempt Bond ETF (VTEB): ETF Research Reports
 
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