Yahoo Finance 5 ETFs Sizzle Last Week Amid Volatility
Overall, ETFs pulled in $19.1 billion in capital for the week (ending Apr 14). U.S. equity led the way higher with $8.3 billion in inflows, closely followed by $4.9 billion in U.S. fixed-income ETFs and $4.7 billion in international equity ETF, per etf.com. With this, U.S.-listed ETFs hit the key milestone of $7 trillion in AUM.
As such, SPDR S&P 500 ETF Trust SPY, J.P. Morgan Alerian MLP Index ETN AMJ, SPDR Bloomberg Barclays High Yield Bond ETF JNK, Communication Services Select Sector SPDR Fund XLC and iShares iBoxx $ Investment Grade Corporate Bond ETF LQD dominated the top creation list last week.
The inflows came following encouraging inflation data. Inflation in the United States cooled down further in March as annual inflation dropped from 6% to 5%, the smallest annual gain since May 2021, and is now down by almost half its peak of more than 9% in June last year. Cooling inflation has fueled optimism that the Federal Reserve’s monetary tightening is about to come to an end.
Retail sales fell more than expected in March as consumers cut back on purchases of motor vehicles and other big-ticket items, suggesting that the economy was losing steam at the end of the first quarter because of higher interest rates (read: 4 Sector ETFs & Stocks to Win on March Retail Sales).
However, there is an 89% probability that the Fed will deliver an interest rate hike by another 25 basis points at next month's policy meeting and only an 11% chance of the central bank not making a move, according to the CME FedWatch Tool. The bets have pushed up the yields once again.
We have detailed the ETFs below:
SPDR S&P 500 ETF Trust (SPY)
SPDR S&P 500 ETF Trust is the top asset creator, pulling in $5.4 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 25.5% 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 82.7 million shares. It has AUM of $380.3 billion and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
J.P. Morgan Alerian MLP Index ETN (AMJ)
Alerian MLP Index ETN saw an inflow of $2.4 billion last week. It provides investors a way to gain exposure to midstream energy MLPs. With AUM of $2.7 billion, the note charges 85 bps in annual fees and trades in an average daily volume of 364,000 shares.
SPDR Bloomberg Barclays High Yield Bond ETF (JNK)
SPDR Bloomberg Barclays High Yield Bond ETF gathered $1.3 billion in capital. It provides diversified exposure to U.S. dollar-denominated high-yield corporate bonds with above-average liquidity by tracking the Bloomberg High Yield Very Liquid Index. It holds 1184 bonds in its basket with an average maturity of 5.25 years and an adjusted duration of 3.67 years (read: Junk Bond ETFs Appear in Trouble Due to Banking Crisis).
SPDR Bloomberg Barclays High Yield Bond ETF has AUM of $8.6 billion in its asset base while trading in average daily volume of 10.6 million shares. It charges 40 bps in annual fees and has a Zacks ETF Rank #3 with a High risk.
Communication Services Select Sector SPDR Fund (XLC)
Communication Services Select Sector SPDR Fund has accumulated $903 million in capital. It offers exposure to companies from telecommunication services, media, entertainment and interactive media & services, and has AUM of $11 billion. It follows the Communication Services Select Sector Index and holds 24 stocks in its basket. About 48% of the portfolio is allocated to interactive media & services, while entertainment and media round off the next spot (read: 5 Best Performing Sector ETFs of Q1).
Communication Services Select Sector SPDR Fund charges 10 bps in annual fees and trades in an average daily volume of 7 million shares. It has a Zacks ETF Rank #2.
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
iShares iBoxx $ Investment Grade Corporate Bond ETF gathered $866 million in capital. It offers exposure to a broad range of U.S. investment-grade corporate bonds by tracking the Markit iBoxx USD Liquid Investment Grade Index. iShares iBoxx $ Investment Grade Corporate Bond ETF holds 2,609 securities in its basket with an effective duration of 8.48 years and an average maturity of 13.08 years.
iShares iBoxx $ Investment Grade Corporate Bond ETF has AUM of $37 billion and trades in an average daily volume of 24 million shares. LQD charges 14 bps in annual fees and has a Zacks ETF Rank #3 with a High risk outlook.
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SPDR S&P 500 ETF (SPY): ETF Research Reports
SPDR Bloomberg High Yield Bond ETF (JNK): ETF Research Reports
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD): ETF Research Reports
JPMorgan Alerian MLP Index ETN (AMJ): ETF Research Reports
Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports
