5 ETFs That Gained Investors Love Last Week

LLast week, ETFs shed about $11 billion in capital overall on concerns over the Fed’s aggressive rate hike, which could lead to recession. Last week represents the second week of outflows this year and the worst since mid-September 2021 when fears of China’s property developer Evergrande’s collapse spurred nearly $30 billion in outflows (read: Bet on These ETFs as Fed Might Turn Super Hawkish in 2022).

This has pushed year-to-date inflows down to $195.1 billion. US equity ETFs led the way higher last week with $13.7 billion outflows, closely followed by $4.8 billion in US fixed-income ETFs. However, international equity ETFs and fixed-income ETFs saw inflows of $4.4 billion and $917 million, respectively, per etf.com.

iShares Core S&P 500 ETF IVV, Direxion Daily Semiconductor Bull 3x Shares SOXL, iShares MSCI Emerging Markets ETF EMS, Vanguard S&P 500 ETF voo, and Health Care Select Sector SPDR Fund XLV dominated the top creation list last week.

Stock Market Synopsis

Wall Street snapped three consecutive weeks of gains on the back of bets over a tighter monetary policy from the Federal Reserve. All major indices declined last week, with the S&P 500 and the Nasdaq plunging 1.3% and 3.9%, respectively, while the Dow Jones dipped 0.3% hitting back-to-back weekly declines.

The latest Fed minutes showed the expectations of multiple half percentage-point rate increases to control soaring inflation. Federal Reserve Governor Lael Brainard indicated an aggressive approach to shrinking the central bank’s balance sheet. He hinted that the central bank will start β€œto reduce the balance sheet at a rapid pace as soon as May meeting.”

We have detailed the ETFs below:

iShares Core S&P 500 ETF (IVV)

iShares Core S&P 500 ETF topped asset flow creation last week, gathering $1.4 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 7% of assets. IVV is heavy on the information technology sector, while healthcare, consumer discretionary, and financials round off its next four spots with a double-digit allocation each.

iShares Core S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 7.4 million shares. It has AUM of $332.2 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

Direxion Daily Semiconductor Bull 3x Shares (SOXL)

Direxion Daily Semiconductor Bull 3x Shares accumulated $1.1 billion last week. It targets the semiconductor corner of the technology sector with three times leveraged exposure to the ICE Semiconductor Index.

Direxion Daily Semiconductor Bull 3x Shares has amassed about $5.3 billion in its asset base while charging 89 bps in fees per year. Volume is good as it exchanges 42.1 million shares per day on average.

iShares MSCI Emerging Markets ETF (EEM)

iShares MSCI Emerging Markets ETF has pulled in $1.1 billion in capital, taking its total AUM to $29.4 billion. It offers exposure to large and mid-sized companies in emerging markets and follows the MSCI Emerging Markets Index. iShares MSCI Emerging Markets ETF holds 1,243 securities with Chinese firms making up for 30% of the portfolio while Taiwan, India and South Korea round off the next three spots with a double-digit exposure each (read: ETFs to Win & Lose on the Likely First Rate Hike Since 2008).

iShares MSCI Emerging Markets ETF charges 68 bps in annual fees and trades in an average daily volume of 56.7 million shares. It has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.

Vanguard S&P 500 ETF (VOO)

Vanguard S&P 500 ETF accumulated $847.2 million in capital. It tracks the S&P 500 Index and holds 507 stocks in its basket. Vanguard S&P 500 ETF is heavy on the information technology sector while healthcare, consumer discretionary, and financials round off its next four spots with a double-digit allocation each.

Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 7 million shares. It has AUM of $289 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: S&P 500 ETFs to Buy on Bullish Analyst Ratings).

Health Care Select Sector SPDR Fund (XLV)

Health Care Select Sector SPDR Fund saw inflows of $655 million last week. It is the most-popular health care ETF and follows the Health Care Select Sector Index. Health Care Select Sector SPDR Fund holds 65 securities in its basket, with pharma companies taking the top spot at 28.8% of assets while health care providers and services, health care equipment and supplies, biotech and life sciences tools & services receive double-digit exposure each.

Health Care Select Sector SPDR Fund manages nearly $38.8 billion in its asset base and trades in heavy volume of around 13 million shares. The expense ratio comes in at 0.10%. XLV has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.

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iShares MSCI Emerging Markets ETF (EEM): ETF Research Reports

Health Care Select Sector SPDR ETF (XLV): ETF Research Reports

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

iShares Core S&P 500 ETF (IVV): ETF Research Reports

Direxion Daily Semiconductor Bull 3X Shares (SOXL): ETF Research Reports

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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