5 ETFs That Investors Loved the Most Last Week

Last week, exchange-traded funds (ETFs) attracted a remarkable total of $62.5 billion in capital, bringing the year-to-date inflows up to $292 billion. U.S. equity ETFs were at the forefront, with significant inflows of $41.6 billion, followed by international ETFs that secured $7.6 billion and U.S. fixed-income ETFs that garnered $5.9 billion.

Top ETFs by Inflow

The inflows this week were propelled by an impressive performance of several top ETFs. Notably, the iShares Core S&P 500 ETF (IVV), Schwab U.S. Dividend Equity ETF (SCHD), Vanguard S&P 500 ETF (VOO), Vanguard High Dividend Yield ETF (VYM), and Vanguard Mid-Cap ETF (VO) were the standout performers in terms of inflows.

Market Recovery and Investor Confidence

The strong capital inflows coincided with a rebound in the U.S. stock market, which recovered from a recent dip into correction territory. The S&P 500 managed to break a four-week losing streak, which was fueled by concerns surrounding trade policies and fears of a recession. It increased by 0.5%, while the Dow Jones rose by 1.2% and the Nasdaq Composite climbed 0.2%.

The Federal Reserve's latest meeting also boosted investor confidence. Chair Jerome Powell announced that interest rates would remain unchanged and maintained projections for two potential rate cuts this year. This decision was less hawkish than some investors had feared, which contributed to the market rally.

Detailed Overview of Top ETFs

iShares Core S&P 500 ETF (IVV) led the pack with $17.3 billion in inflows. This ETF follows the S&P 500 Index and comprises 503 stocks, with none exceeding 7% of total assets. It predominantly invests in the information technology sector, with financials, healthcare, and consumer discretionary also holding substantial portions.

With an annual fee of just 3 bps, this ETF boasts an asset under management (AUM) of $563 billion and is rated #1 (Strong Buy) by Zacks, with a medium risk outlook.

Schwab U.S. Dividend Equity ETF (SCHD) saw inflows of $7.8 billion. This ETF focuses on 104 high-dividend-yielding U.S. companies known for their consistent dividends, tracked through the Dow Jones U.S. Dividend 100 Index. No single stock holds more than 5% of the assets. SCHD charges 6 bps in fees and trades an average of around 14 million shares daily, with an AUM of $77.5 billion and a Zacks rating of #3 (Hold).

Vanguard S&P 500 ETF (VOO) has attracted $3.7 billion in capital. Following the S&P 500 Index, it holds 506 stocks with none exceeding 7.2% of assets and also has a notable allocation to the information technology sector. VOO has an AUM of $619.5 billion, trades 5 million shares daily, and has a low annual fee of 3 bps, rating it #1 (Strong Buy) by Zacks.

Vanguard High Dividend Yield ETF (VYM) recorded an inflow of $3.6 billion last week. By tracking the FTSE High Dividend Yield Index, it targets stocks with prominent dividend yields. VYM includes 529 stocks and has an AUM of $63.3 billion, with an average daily volume of 1.3 million shares. It charges 6 bps in annual fees and holds a Zacks rating of #2 (Buy).

Finally, the Vanguard Mid-Cap ETF (VO) accrued $2.9 billion in inflows. It tracks the CRSP U.S. Mid-Cap Index and includes a diversified portfolio of 318 stocks, ensuring no single company's holding exceeds 1.1% of total assets. With an AUM of $76.4 billion and an annual fee of 4 bps, it holds a Zacks rating of #2 (Buy).

ETFs, Investors, Inflows