Last Week's Top 5 Most Popular ETFs

Last week saw a substantial influx of capital into Exchange-Traded Funds (ETFs), with a collective sum of $12.8 billion. These latest contributions have propelled the year-to-date total to an impressive $324.7 billion. U.S. fixed-income ETFs were particularly attractive, drawing in $8.3 billion, and they were closely followed by international equity and currency ETFs, which each received $1.8 billion in inflows.

Leading ETFs of the Week

A few ETFs stood out with significant asset inflows. Notable among them were the Vanguard S&P 500 ETF (VOO), the iShares S&P 500 Growth ETF (IVW), the iShares Russell 2000 ETF (IWM), the Vanguard Total Stock Market ETF (VTI), and the iShares MSCI EAFE Growth ETF (EFG). These funds dominated the top creation list, complementing the gains experienced by Wall Street the previous week.

Financial Markets Overview

Last week concluded on a high note for Wall Street, with the tech-heavy Nasdaq Composite leading gains by surging 2.4%. The S&P 500 and Dow Jones also reported increases, albeit more modestly, at 1.3% and 0.3% respectively. Technology stocks, particularly, saw an uptick, which in part boosted the market performance.

While earlier economic data pointed to a potential slowdown, signaling a possible need for interest rate cuts, the landscape shifted with a robust jobs report. In May, U.S. job growth significantly exceeded expectations, adding 272,000 jobs and thus reducing expectations of imminent rate cuts. This shift was also reflected in Treasury yield increases, indicating some investor optimism.

Insights into Top ETF Performers

Digging deeper into the top-performing ETFs, the Vanguard S&P 500 ETF (VOO) captured the lion's share of asset flows, pulling in $11.9 billion. It mirrors the S&P 500 Index and invests in 504 stocks with a balanced sector allocation and a leaning towards technology. Following suit, the iShares S&P 500 Growth ETF (IVW) saw asset accumulation of $3 billion. Other noteworthy mentions include the iShares Russell 2000 ETF (IWM) and Vanguard Total Stock Market ETF (VTI) which brought in $1.8 billion and $1.5 billion respectively, showcasing investor interest in diversified and total market exposure ETFs.

The international iShares MSCI EAFE Growth ETF (EFG) also stood out with a notable $1.4 billion added to its assets under management (AUM), indicating investors' appetite for growth opportunities abroad, particularly in regions such as Europe, Australia, Asia, and the Far East.

ETFs, Inflows, Growth