5 ETFs That Won Over Investors Last Week

ETF Market Insights

Last week, capital in various ETFs reached $38 billion, bringing annual inflows to an impressive $700 billion. Among these, U.S. stock ETFs attracted $13.3 billion, while bond ETFs saw inflows of $10.6 billion. International ETFs also performed well, adding $8.8 billion.

The top players in terms of creation were the Investco QQQ Trust (QQQ), Vanguard S&P 500 ETF (VOO), ARK Innovation ETF (ARKK), Ishares Ethereum Trust ETF (ETHA), and Vanguard Medium-Term Corporate Bonds ETF (VCIT).

On Wall Street, the second week saw profits, mainly fueled by easing inflation data, which bolstered expectations for potential interest rate cuts from the Fed next month. The Dow Jones climbed over 1.7%, while the S&P 500 and Nasdaq Composite Index rose by 0.9% and 0.8%, respectively.

In August, however, U.S. consumer sentiment took a hit, declining for the first time in four months. The University of Michigan Consumer Sentiment Index dropped from 61.7 to 58.6, reflecting new worries about inflation. On a brighter note, retail sales saw a 0.5% increase in July, indicating a steady level of consumer spending following a significant drop earlier in the year.

Here are some details about the leading ETFs:

Investco QQQ Trust (QQQ)

The Investco QQQ Trust is the top asset creator, attracting $6.6 billion in capital. It tracks the Nasdaq 100 index, providing exposure to the largest 101 non-financial companies listed on Nasdaq. QQQ is quite popular with total assets under management (AUM) of $373.6 billion and an average daily trading volume of 44 million shares. The ETF charges annual fees of 20 basis points and has a Zacks ETF rank of #1 (Strong Buy), paired with a moderate risk outlook.

Vanguard S&P 500 ETF (VOO)

Last week, the Vanguard S&P 500 ETF welcomed $3 billion in capital. It tracks the S&P 500 index and holds 504 stocks, each representing at least 8% of total assets. The ETF has a significant focus on the technology sector, with finance, consumer discretionary, and communication services also making up notable allocations. VOO charges 3 basis points in annual fees, has an AUM of $732 billion, and trades approximately 5 million shares daily. It also holds a Zacks ETF rank of #1 with a moderate risk outlook.

ARK Innovation ETF (ARKK)

The ARK Innovation ETF raised $2.7 billion recently. It’s aggressively managed and targets investments in companies poised to benefit from advancements in scientific research, technology, and innovations in areas like DNA technology, robotics, and fintech. The fund includes 45 different securities and has an AUM of $10 billion, charging 75 basis points annually. It enjoys a trading volume of around 13 million shares per day.

Ishares Ethereum Trust ETF (ETHA)

The Ishares Ethereum Trust ETF experienced an influx of $2.2 billion, aimed at mirroring Ethereum’s price performance. Managed by leading asset managers, ETHA utilizes Coinbase Prime, known for its large-scale digital asset custody, alongside established technological infrastructures. With an AUM of $15.9 billion, it generally trades around 54 million shares daily and charges 25 basis points in annual fees.

Vanguard Medium-Term Corporate Bonds ETF (VCIT)

The Vanguard Intermediate-Term Corporate Bonds ETF secured $1.6 billion in its asset base. It follows the Bloomberg US 5-10 year Corporate Bond Index and contains 2,134 bonds with an effective maturity of 7.5 years. With total assets of $55.8 billion, it trades about 12.5 million shares daily and has an expense ratio of just 0.03%. This ETF is rated #4 (sell) by Zacks with a medium risk profile.