Overall, ETFs pulled in $18.1 billion in capital last week, taking the year-to-date inflows to $169.2 billion. U.S. equity ETFs led the way higher with $9.3 billion in inflows, closely followed by $7.3 billion in international equity ETFs and $2.3 billion in U.S. fixed-income ETFs, per etf.com.
As such, iShares Russell 2000 ETF (IWM - Free Report) , iShares Climate Conscious & Transition MSCI USA ETF USCL, iShares Core MSCI EAFE ETF (IEFA - Free Report) , Invesco S&P 500 Equal Weight ETF (RSP - Free Report) and Invesco NASDAQ 100 ETF (QQQM - Free Report) dominated the top creation list last week.
Wall Street ended last week on a positive note, with the rally now broadening to various sectors such as energy and industrials, as well as small-cap stocks. In fact, the small-cap index, as represented by the Russell 2000 Index, took charge and outperformed the S&P 500 Index, which entered a new bull market (read: ).
The stronger-than-expected jobs data and bets on Fed’s rate hike pause have been fueling a rally in stocks. The economy added 339,000 jobs in May, up from April’s revised job gains number of 294,000, and hotter than the 190,000 jobs that economists were expecting. This has offered Fed a chance to stick with the wait-and-see approach. According to CMEGroup's Fedwatch tool, traders see a 72% chance of the U.S. central bank holding interest rates at the current 5-5.25% range in its meeting, slated to start today.
We have detailed the ETFs below:
iShares Russell 2000 ETF (IWM - Free Report)
iShares Russell 2000 ETF topped asset flow creation last week, pulling in $3.4 billion in capital. It is the largest and most popular ETF in the small-cap space, with AUM of $56.5 billion and an average daily volume of 29 million shares. iShares Russell 2000 ETF holds well-diversified 1,907 stocks in its basket and has key holdings in healthcare, industrials, financials, information technology and consumer discretionary (read: Top-Ranked ETFs to Buy on Small-Cap Comeback).
iShares Russell 2000 ETF charges 19 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares Climate Conscious & Transition MSCI USA ETF (USCL)
iShares Climate Conscious & Transition MSCI USA ETF has gathered $2.1 billion in its asset base last week, propelling total AUM to $2.1 billion. It seeks to track the MSCI USA Extended Climate Action Index, which is composed of U.S. large- and mid-capitalization companies based on their positioning, relative to their sector peers, with respect to the transition to a low-carbon economy, as determined by the Index Provider, based primarily on current emissions intensity, emissions reduction targets, green business revenues, and climate risk management.
iShares Climate Conscious & Transition MSCI USA ETF holds 315 stocks in its basket, with each accounting for no more than 5% of assets. Information technology takes the top spot at 26.6% share, while health care, financials and communication round off the next three spots with double-digit exposure each. USCL charges 8 bps in annual fees.
iShares Core MSCI EAFE ETF (IEFA - Free Report)
iShares Core MSCI EAFE ETF has accumulated $1.5 billion in capital last week. It offers exposure to a broad range of companies in Europe, Australia, Asia and the Far East and follows the MSCI EAFE IMI Index. It holds a broad basket of 2989 stocks, with each accounting for less than 2% share.
iShares Core MSCI EAFE ETF has expense ratio of 0.07% and trades in an average daily volume of 8 million shares. It has a Zacks ETF Rank #4 (Sell) with a Low risk outlook.
Invesco S&P 500 Equal Weight ETF (RSP - Free Report)
Invesco S&P 500 Equal Weight ETF has gathered $1.1 billion in capital. It tracks the S&P 500 Equal Weight Index, which equally weights the stocks in the S&P 500 Index. It holds 504 stocks in its basket and charges 20 bps in annual fees.
Invesco S&P 500 Equal Weight ETF has amassed $35 billion in its asset base and trades in an average daily volume of 4.3 million shares and has a Zacks Rank #3 (Hold).
Invesco NASDAQ 100 ETF (QQQM - Free Report)
Invesco NASDAQ 100 ETF saw an inflow of $1 billion. It is identical to QQQ tracking the NASDAQ-100 Index but comes with lower annual fees of 15 bps. It holds 103 securities in its basket, with a higher concentration on the top two firms (read: Nasdaq ETFs Beating Dow Since 1991: Will the Rally Last?).
Invesco NASDAQ 100 ETF accumulated $12.2 billion in its asset base. It trades in an average daily volume of 866,000 shares and has a Zacks ETF Rank #2.
