Stock markets rallied again last week as May closed out with a gain 4.5% for the S&P 500, and 4.2% for the Dow Jones. The tech-heavy Nasdaq had the best month out of the three, gaining 6.7%, and continues to be where investors are making the most bets. Tensions between China and the US have risen lately, but it has not put a damper on sentiment that is already beat up from the coronavirus recovery plans. Stock markets barely noticed. If there is an economic clash coming, it would surely cause some pullback, but for now all markets are pointing to the upside. Here is an analysis of the top weekly flows into the largest ETFs by AUM.
Is it possible investors want to take some gains off the table and into more conservative assets? Judging by the largest inflow this week, you could make that assumption. The iShares Core U.S. Aggregate Bond ETF (AGG) gained over $1.2 billion in assets last week, despite stock markets rallying. As the Federal Reserve continues the downside pressure on interest rates, this ETF will likely continue to receive inflows. According to our deep learning algorithms supported by our Artificial Intelligence (“AI”) technology, this ETF is rated as a “Top Buy.”
Continuing the risk-off trend, at least in the passive S&P 500 funds, was some major outflows for the SPDR S&P 500 ETF Trust (SPY), the iShares Core S&P 500 ETF (IVV), and the Vanguard S&P 500 ETF (VOO). The 30-day outflows of -$4.0 billion, -$1.2 billion and -$1.3 billion, respectively, were pretty telling on how investors think the large-cap S&P 500 will be doing from these elevated levels. Still, all three are rated as “Buy” from our AI systems, and in the last week they did do better gaining assets of $362 million, $993 million, and $521.8 million.
Another “Buy” rated ETF that had inflows last week was the Vanguard Total Stock Market ETF (VTI). As investors looked to move to a broader market-cap fund with lower fees, the ETF gained $368 million in assets this week and an impressive $5.2 billion in the last 90-days. The holding has an impressive net expense ratio of only 0.03%, below the iShares and SPDR competitors.
Our final “Top Buy” rated ETF from our AI technology is the Invesco QQQ Trust (QQQ), maybe unsurprisingly. Technology stocks have been massive winners this year, and this ETF tracks the tech-heavy Nasdaq index. Inflows have been especially impressive on all counts, with the last week gaining $495 million, last 30-days $3.8 billion, and last 90-days $9.1 billion. The net expense ratio is a bit higher at 0.2%, but the net returns have been much stronger.
A couple other notable inflows on the list were the SPDR Gold Shares (GLD) and the Vanguard Total Bond Market ETF (BND). Gold has appreciated plenty this year and the ETF had inflows of $598 million in the last week, but a whopping $10 billion in the last 90-days. The bond market ETF also had a strong week as investors took profits from their stock holdings, with inflows of $822 million.