Top 5 ETFs Leading the Strongest Week in 2023
Last week, ETFs attracted a total of $16.8 billion in capital, with U.S. fixed-income ETFs leading the way with $13.7 billion in inflows, followed by U.S. equity ETFs at $4.4 billion and international ETFs at $744 million, according to etf.com.
The Wall Street market wrapped up its best week in 2023 to start November, with the Dow Jones Industrial Average and the S&P 500 gaining approximately 5% and 6%, respectively. The tech-heavy $Nasdaq(NDAQ)$ Composite Index outperformed, rising over 6.6%. This rally was driven by increased investor confidence, solid corporate earnings, and indications that the Federal Reserve's aggressive interest rate hike campaign may be coming to an end.
Last week, the Federal Reserve voted to maintain interest rates at their highest level in 22 years at the conclusion of its latest policy meeting. $Investors(ISBC)$ speculated that the central bank might be finished with rate hikes. The latest soft monthly jobs report further supported the idea that the Fed is done with rate hikes. Federal Reserve Chair Jerome $Powell(POWL)$ suggested that some softening in the labor market might be necessary to sustain the downturn in inflation.
According to the CME FedWatch Tool, the odds of a rate cut in March have increased from 12.9% on November 2 to 26.8%. This has led to a decline in Treasury yields, bolstering risk-on trading. The 10-year yields recorded the largest weekly decline since March, while the 30-year yield decline marked the largest $one(AONE.U)$-week decline since March 6, 2020, according to Dow Jones Market Data.
Here are details about some of the popular ETFs:
SPDR Bloomberg 1-3 Month T-Bill ETF (BIL): Attracted $3.9 billion in capital, with an expense ratio of 13 bps, and a medium-risk outlook.
iShares iBoxx USD High Yield Corporate Bond ETF (HYG): Attracted $2.1 billion in capital, with an expense ratio of 49 bps, and a high-risk outlook.
Vanguard S&P 500 ETF (VOO): Accumulated $1.8 billion in capital, with an expense ratio of 3 bps, and a medium-risk outlook.
$Invesco(IVZ)$ QQQ Trust (QQQ): Gathered $1.7 billion in capital, with an expense ratio of 20 bps, and a medium-risk outlook.
$iShares iBoxx $ Investment Grade Corporate Bond ETF(LQD)$ (LQD): Accumulated $1.1 billion in assets, with an expense ratio of 14 bps, and a high-risk outlook.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.