5 ETFs That Investors Loved Most Last Week

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

iShares Core S&P 500 ETF (IVV - Free Report), Schwab U.S. Dividend Equity ETF (SCHD - Free Report), Vanguard S&P 500 ETF (VOO - Free Report), Vanguard High Dividend Yield ETF (VYM - Free Report), and Vanguard Mid-Cap ETF (VO - Free Report) emerged as the top performers, each registering impressive inflows.

The notable inflows coincided with a rebound in the U.S. stock market, which had recently experienced a slight downturn into correction territory. The S&P 500 managed to break a four-week losing streak, prompted by concerns over trade policy and fears of a recession, by rising 0.5%. The Dow Jones jumped by 1.2%, while the Nasdaq Composite Index added a modest 0.2% to its value.

Adding to the positive sentiment, the Federal Reserve's recent decisions bolstered confidence during a time of economic uncertainty. Chair Jerome Powell announced that interest rates would remain steady and hinted at the possibility of two rate cuts this year, assuaging fears among investors. His remarks, which were less hawkish than many had anticipated, contributed to a surge in the stock market (read: 5 Undervalued ETFs to Ride on Powell's Market Optimism).

Despite the Fed's expectations for higher inflation and slower economic growth, Powell reassured investors by suggesting that the impact of tariffs on inflation would likely be temporary, and that the risks of a recession currently appeared low.

As Powell stated, "The economy seems to be healthy." Below, we detail the ETFs that attracted the most investor interest last week.

iShares Core S&P 500 ETF (IVV)

The iShares Core S&P 500 ETF is currently the largest asset creator, attracting $17.3 billion. This ETF tracks the S&P 500 Index and consists of 503 stocks, ensuring that no single stock accounts for more than 7% of the total assets. The ETF has a strong emphasis on the information technology sector, followed closely by financials, healthcare, and consumer discretionary.

With an expense ratio of just 3 bps and an average daily trading volume of 4.5 million shares, iShares Core S&P 500 ETF has amassed an AUM (Assets Under Management) of $563 billion and holds a Zacks ETF Rank #1 (Strong Buy), reflecting a medium risk outlook.

Schwab U.S. Dividend Equity ETF (SCHD)

The Schwab U.S. Dividend Equity ETF saw significant inflows, accumulating a total of $7.8 billion. This ETF focuses on 104 high-dividend-yielding U.S. companies known for consistently paying dividends, which are selected based on their financial strength and sufficient liquidity. This ETF tracks the Dow Jones U.S. Dividend 100 Index.

Well diversified, no single company constitutes more than 5% of the fund's assets. The ETF charges investors an annual fee of 6 bps and records a high trading volume of around 14 million shares daily. It has an AUM of $77.5 billion and bears a Zacks ETF Rank #3 (Hold) with a medium risk outlook.

Vanguard S&P 500 ETF (VOO)

Another strong performer, the Vanguard S&P 500 ETF, raised $3.7 billion in capital. Like the iShares Core S&P 500 ETF, it tracks the S&P 500 Index and contains 506 stocks, ensuring that no single stock represents more than 7.2% of its assets. The ETF's largest sector allocation is again in information technology, with significant investments in financials, healthcare, and consumer discretionary.

Investors are charged an annual fee of 3 bps for this ETF, which has an AUM of $619.5 billion and trades about 5 million shares each day. It too holds a Zacks ETF Rank #1, indicating a medium risk outlook.

Vanguard High Dividend Yield ETF (VYM)

In addition, the Vanguard High Dividend Yield ETF experienced an inflow of $3.6 billion last week. This ETF targets companies that offer high dividend yields by tracking the FTSE High Dividend Yield Index. The ETF comprises 529 stocks and charges an annual fee of 6 bps.

The fund leans towards holdings in financials, with industrials, healthcare, and consumer staples occupying the next most significant positions. Vanguard High Dividend Yield ETF has grown its asset base to $63.3 billion, trading at an average volume of 1.3 million shares per day. It maintains a Zacks ETF Rank #2 (Buy) and reflects a medium risk outlook.

Vanguard Mid-Cap ETF (VO)

Finally, the Vanguard Mid-Cap ETF attracted $2.9 billion in assets. This ETF seeks to track the CRSP US Mid-Cap Index and comprises a diversified mix of 318 stocks, with no single stock exceeding 1.1% of its total assets. Its key sector exposures include industrials, technology, financials, and consumer discretionary.

The Vanguard Mid-Cap ETF boasts an AUM of $76.4 billion and has a fee structure of 4 bps annually. It holds a Zacks ETF Rank #2 (Buy), with a medium risk outlook.

ETFs, Investors, StockMarket