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Weekly ETF Roundup: U.S. Equity Tops, Bond Flops

Overall ETFs gathered about $36.3 billion capital last week, bringing in year-to-date inflows of $117.4 billion, higher than the $89.1 billion seen in the year-ago period. U.S. equity ETFs led the way higher last week with $24.7 billion inflows, closely followed by $9.8 billion in international equity ETFs and $1.7 billion in international fixed income ETFs, per etf.com.

U.S. Equity Shines

After trading in a tight range, the U.S. stocks rallied to end last week in anticipation of new fiscal aid from Washington that will expedite the recovery of the economy. Most notably, the S&P 500 gained 1.2% while the tech-heavy Nasdaq Composite Index rose 1.7% (read: 5 Stocks That Powered S&P 500 ETF Last Week).

iShares Core S&P 500 ETF IVV topped the creation list pulling in about $7.2 billion of capital last week, followed by inflows of $5.6 billion for SPDR S&P 500 SPY and $2.3 billion for iShares Russell 2000 ETF IWM. IVV and SPY invest in stocks on the S&P 500 Index while IWM targets the small-cap segment by tracking the Russell 2000 Index. The three funds have a Zacks ETF Rank #3 (Hold).

Meanwhile, Invesco QQQ QQQ holds the fifth position, having accumulated about $900 million in its asset base. It provides exposure to the largest domestic and international non-financial companies listed on the Nasdaq and has a Zacks ETF Rank #1 (Strong Buy).

Vanguard S&P 500 ETF VOO, which also tracks the S&P 500 Index, gathered $694 million in its asset base last week. It also has a Zacks ETF Rank #3.

ARK Invest ETFs Rock

Ark Investment Management ETFs have been seeing a huge surge in their popularity in recent months. The most popular is Ark Innovation ETF ARKK, which has gathered $1.2 billion in assets last week. This was followed by inflows of $815 million in ARK Next Generation Internet ETF ARKW and $688.4 million in ARK Fintech Innovation ETF ARKF.

These ARK Invest ETFs are designed to capture long-term appreciation and alpha uncorrelated to traditional indices or managers. They provide exposure to aggressive growth through a fund rather than individual stocks and complement traditional broad index based value or growth strategies (read: Ark Invest ETFs Power Active Investing Growth).

In particular, ARKK invests in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research related to the areas of DNA technologies (Genomic Revolution), industrial innovation in energy, automation and manufacturing (Industrial Innovation), increased use of shared technology, infrastructure and services (Next Generation Internet), and technologies that make financial services more efficient (Fintech Innovation).

ARKW focuses on companies that are expected to benefit from the shift in technology infrastructure to cloud, enabling mobile, new and local services such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services, Internet-based products and services, new payment methods, big data, the Internet of Things (IoT), and social distribution and media. These companies may develop, produce or enable cloud computing & cyber security, e-commerce, big data & Artificial Intelligence, mobile technology and IoT, social platforms, and blockchain & P2P.

ARKF invests in a company having the theme of Fintech innovation. The Adviser defines Fintech innovation as the introduction of a technologically enabled new product or service that potentially changes the way the financial sector works, which ARK believes includes transaction innovations, blockchain technology, risk transformation, frictionless funding platforms, customer facing platforms, and new intermediaries.

Fixed Income ETFs Flop

Rising yields have dampened the appeal for the high-yield ETFs like iShares iBoxx USD High Yield Corporate Bond ETF HYG and SPDR Bloomberg Barclays High Yield Bond ETF JNK. Notably, HYG and JNK pulled out $1.2 billion and $678 million in capital, respectively, and offer exposure to a broad range of U.S. high-yield corporate bonds (read: TIPS ETFs to Buy on Growing Inflation).

The iShares iBoxx $ Investment Grade Corporate Bond ETF LQD also saw outflow of $824 million. It offers exposure to a broad range of U.S. investment grade corporate bonds. HYG has a Zacks ETF Rank #4 (Sell) while the other two carry a Zacks ETF Rank #3.

Precious Metal Lags

Gold and silver prices have been volatile throughout the week. With the surge in U.S. Treasury yields and a higher dollar, gold lost its luster last week. Silver price came under pressure as ‘short-squeeze’ trade fizzled. As such, the ultra-popular SPDR Gold Trust ETF GLD and iShares Silver Trust SLV saw outflows of $1 billion and $767 million, respectively (read: GameStop, Reddit Frenzy and Silver ETFs).

GLD tracks the gold price while SLV offers exposure to the day-to-day movement of the price of silver bullion. Both products have a Zacks ETF Rank #3.

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SPDR Bloomberg Barclays High Yield Bond ETF (JNK): ETF Research Reports
 
SPDR Gold Shares (GLD): ETF Research Reports
 
SPDR S&P 500 ETF (SPY): ETF Research Reports
 
Invesco QQQ (QQQ): ETF Research Reports
 
iShares iBoxx High Yield Corporate Bond ETF (HYG): ETF Research Reports
 
iShares Russell 2000 ETF (IWM): ETF Research Reports
 
iShares iBoxx Investment Grade Corporate Bond ETF (LQD): ETF Research Reports
 
iShares Core S&P 500 ETF (IVV): ETF Research Reports
 
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