Image Source: Pixabay
Overall, ETFs pulled in $16.8 billion in capital last week, taking year-to-date inflows to $361.1 billion. U.S. fixed-income ETFs led the way higher with $13.7 billion in inflows, followed by $4.4 billion in U.S. equity ETFs and $744 million in international ETFs, per etf.com.SPDR Bloomberg 1-3 Month T-Bill ETF (BIL – Free Report), iShares iBoxx USD High Yield Corporate Bond ETF (HYG – Free Report), Vanguard S&P 500 ETF (VOO – Free Report), Invesco QQQ Trust (QQQ – Free Report) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD – Free Report) dominated the top creation list last week.Wall Street wrapped up the best week of 2023 to start November. The Dow Jones Industrial Average and the S&P 500 gained about 5% and 6%, respectively, last week, while the tech-heavy Nasdaq Composite Index outperformed, rising more than 6.6%. The rally was driven by increased investor confidence, buoyed by solid corporate earnings, and signals that the Federal Reserve’s aggressive interest rate hiking campaign might be nearing an end.Last week, the Fed voted to hold interest rates at their highest range in 22 years at the conclusion of its latest policy meeting and investors bet that the central bank may be done hiking. The latest soft monthly job report bolstered the idea that the Fed is done with rate hikes. Federal Reserve Chair Jerome Powell indicated that some softening in the labor market would likely be necessary to sustain the inflationary downturn. According to CME FedWatch Tool, Fed-fund futures now put the odds of a March rate cut at 26.8% from 12.9% on Nov 2. This has pushed down the Treasury yields, bolstering risk-on trade. The 10-year yields logged the largest weekly decline since March, while the 30-year yield decline marked the largest one-week decline since Mar 6, 2020, according to Dow Jones Market Data.We have detailed the ETFs below:SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)SPDR Bloomberg 1-3 Month T-Bill ETF is the top asset creator, pulling in $3.9 billion in capital. It seeks to provide exposure to zero-coupon U.S. Treasury securities with a remaining maturity of 1-3 months. BIL follows the Bloomberg 1-3 Month U.S. Treasury Bill Index, holding 19 securities in its basket. Both average maturity and adjusted duration are at 0.15 years each.SPDR Bloomberg 1-3 Month T-Bill ETF has AUM of $39.4 billion and an average daily volume of 9.2 million shares. It charges 13 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.iShares iBoxx USD High Yield Corporate Bond ETF (HYG)iShares iBoxx $ High Yield Corporate Bond ETF saw an inflow of $2.1 billion last week. It offers exposure to a broad range of U.S. high-yield corporate bonds by tracking the Markit iBoxx USD Liquid High Yield Index. iShares iBoxx $ High Yield Corporate Bond ETF holds 1,182 securities in its basket with an average maturity of 4.68 years and an effective duration of 3.58 years.iShares iBoxx $ High Yield Corporate Bond ETF is one of the most widely used high-yield bond ETFs, with AUM of $13 billion and an average daily volume of 42 million shares. HYG charges 49 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.Vanguard S&P 500 ETF (VOO)Vanguard S&P 500 ETF has accumulated $1.8 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 7% of assets. Vanguard S&P 500 ETF is heavy on the information technology sector while consumer discretionary, healthcare and industrials round off its next three spots with a double-digit allocation each.Vanguard S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4.4 million shares. It has AUM of $329.7 billion and a Zacks ETF Rank #2 (Buy) with a Medium-risk outlook.Invesco QQQ Trust (QQQ)Invesco QQQ Trust gathered $1.7 billion in capital last week. 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 heavily concentrated on the top two firms with a double-digit allocation, while other firms hold no more than 6% of the assets.Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $203.1 billion and an average daily volume of 47.5 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)iShares iBoxx $ Investment Grade Corporate Bond ETF has accumulated $1.1 billion in its asset base. 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 2,666 securities in its basket with an effective duration of 8.09 years and an average maturity of 12.94 years. iShares iBoxx $ Investment Grade Corporate Bond ETF has AUM of $29.1 billion and trades in an average daily volume of 22.5 million shares. LQD charges 14 bps in annual fees and has a Zacks ETF Rank #3 with a High risk outlook.More By This Author:ETFs In Focus As Coinbase Q3 Loss Narrows, Trading Volume Dips 5 Sector ETFs For Bountiful Returns In November5 Top-Performing Stocks Of The Top ETF Of October