ETFs across various categories raked in $25 billion in capital last week. Investor appetite was broad-based. U.S. equity ETFs led the way with $16.3 billion in inflows. U.S. fixed income ETFs attracted $4.3 billion in capital while international equity ETFs saw $3.5 billion in inflows.
iShares Core S&P 500 ETF IVV, SPDR S&P 500 ETF Trust SPY, Vanguard S&P 500 ETF VOO, Invesco QQQ Trust QQQ and ARK Innovation ETF ARKK dominated the top creation list last week.
All three major indices posted losses last week with more than 2% declines. A weaker-than-expected jobs report and Trump's new tariffs fueled the sell-off.
The economy added just 73,000 jobs in July, well below the 104,000 expected. Job gains for the prior two months were revised sharply lower by a combined 258,000, and the unemployment rate ticked up to 4.2%. Manufacturing activity contracted, factory hiring fell to its lowest level since 2020, and consumer confidence weakened. The sluggish performance in the services sector, coupled with a decline in new orders, further fueled concerns about a potential economic slowdown or even a recession. The combination of weak data has raised the odds for the Federal Reserve to lower interest rates when it next meets in September (read: Should You Ignore Soft Jobs Data & Bet On Wall Street ETFs?).
Meanwhile, President Trump issued new executive orders announcing tariffs on dozens of countries, raising the U.S. effective tariff rate to 18%, the highest since the 1930s. The tariffs are set to take effect on Aug.???7, affecting imports from roughly 70 nations, spooking investors due to trade disruption concerns.
We have detailed the ETFs below.
iShares Core S&P 500 ETF (IVV)
iShares Core S&P 500 ETF is the top asset creator, pulling in $4.7 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 8.2% of the assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while financials and consumer discretionary round off its next two 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 4.7 million shares. It has an AUM of $633 billion and a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
SPDR S&P 500 ETF Trust (SPY)
SPDR S&P 500 ETF Trust has pulled in $4.7 billion in capital. It tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 7.8% of the assets. SPDR S&P 500 ETF Trust is heavy on the information technology sector with a 33.9% share, whereas financials and consumer discretionary round off the next two 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 71 million shares. It has an AUM of $639.7 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: ETFs in Focus as S&P 500 Hits Record Highs in a V-Shaped Recovery).
Vanguard S&P 500 ETF (VOO)
Vanguard S&P 500 ETF has gathered $1.8 billion in its asset base. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 7.3% of the assets. Vanguard S&P 500 ETF is heavy on the information technology sector, while financials and consumer discretionary round off the next two spots with a double-digit allocation each. Vanguard S&P 500 ETF charges investors 3 bps in annual fees. It has an AUM of $700.4 billion and trades in an average daily volume of 5.6 million shares. VOO sports a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Invesco QQQ Trust (QQQ)
Invesco QQQ Trust raked in $1.1 billion in capital. It provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $354 billion and an average daily volume of 43.2 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #1 with a Medium risk outlook (read: Tech ETFs at the Forefront of the Market Rebound on Monday).
ARK Innovation ETF (ARKK)
ARK Innovation ETF has gathered $913.6 million in its asset base. It is an actively managed fund investing in companies that benefit from the development of products or services, technological improvements, and advancements in scientific research related to the areas of DNA technologies and genomic revolution, automation, robotics, energy storage, artificial intelligence, next-generation Internet and Fintech innovation. In total, the fund holds 42 securities in its basket. ARK Innovation ETF has gathered $7 billion in its asset base and charges 75 bps in fees per year from investors. It trades in an average daily volume of 12 million shares.
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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 S&P 500 ETF (IVV): ETF Research Reports ARK Innovation ETF (ARKK): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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