5 ETFs That Investors Loved Most Last Week

Last week, exchange-traded funds (ETFs) saw an impressive influx of capital, amounting to $62.5 billion. This surge brought the year-to-date total inflow to a remarkable $292 billion. Leading the charge were U.S. equity ETFs, which captured $41.6 billion in new investments. Following them were international ETFs, attracting $7.6 billion, and U.S. fixed-income ETFs, which brought in $5.9 billion.

Market Recovery Fuels ETF Inflows

The strong inflows into ETFs coincided with a rebound in the U.S. stock market. After a brief dip into correction territory, the S&P 500 ended a four-week losing streak, recovering by 0.5%. The Dow Jones Industrial Average rose by 1.2%, while the Nasdaq Composite Index saw a slight increase of 0.2%. The positive sentiment was partly fueled by the Federal Reserve's recent meeting, which lifted investor confidence amidst ongoing economic uncertainties.

The Fed's Impact on Investor Optimism

Federal Reserve Chair Jerome Powell kept interest rates steady during the meeting and projected two potential rate cuts for the current year. This was a relief for investors and contributed to the stock market rally. Despite acknowledging the risks of higher inflation and slower economic growth, Powell assured that the potential effects of tariffs on inflation are likely to be temporary, and that recession risks are low. "The economy seems to be healthy," he stated.

Top ETFs from Last Week

Here are the five ETFs that stood out last week based on their inflows:

iShares Core S&P 500 ETF (IVV - Free Report)

The iShares Core S&P 500 ETF emerged as the top performer, attracting $17.3 billion in new capital. It aims to track the S&P 500 Index, comprising 503 stocks, ensuring no single stock represents more than 7% of its total assets. The fund is heavily weighted in the information technology sector, with significant allocations in financials, healthcare, and consumer discretionary. Charging just 3 basis points in annual fees, it boasts an asset under management (AUM) of $563 billion and a Zacks ETF Rank of #1 (Strong Buy).

Schwab U.S. Dividend Equity ETF (SCHD - Free Report)

This ETF gathered $7.8 billion in assets, focusing on 104 high-dividend U.S. companies known for their reliable dividend payments. It tracks the Dow Jones U.S. Dividend 100 Index, and features a low fee structure of 6 basis points. SCHD has an AUM of $77.5 billion and holds a Zacks ETF Rank of #3 (Hold).

Vanguard S&P 500 ETF (VOO - Free Report)

Vanguard's S&P 500 ETF attracted $3.7 billion in capital last week. Like the iShares IVV, it tracks the S&P 500 Index and includes 506 stocks, with similar sector allocations. VOO charges 3 basis points in fees and has an AUM of $619.5 billion, along with a Zacks ETF Rank of #1.

Vanguard High Dividend Yield ETF (VYM - Free Report)

This ETF saw inflows of $3.6 billion and aims to provide exposure to companies with high dividend yields by tracking the FTSE High Dividend Yield Index. VYM holds 529 stocks and charges 6 basis points in annual fees, amassing an AUM of $63.3 billion with a Zacks ETF Rank of #2 (Buy).

Vanguard Mid-Cap ETF (VO - Free Report)

Finally, the Vanguard Mid-Cap ETF collected $2.9 billion. It follows the CRSP US Mid-Cap Index and has a diversified portfolio of 318 stocks, avoiding concentration in any single asset. With an AUM of $76.4 billion and a fee structure of 4 basis points, this fund holds a Zacks ETF Rank of #2 as well.

These five ETFs reflect the preferences of investors last week, driven by a recovery in the market and positive economic signals from the Federal Reserve.

ETFs, Investors, Market