5 ETFs That Investors Loved the Most Last Week

Last week, exchange-traded funds (ETFs) across different categories attracted a remarkable $62.5 billion in capital. This strong inflow has brought total year-to-date inflows to $292 billion. Leading this surge were U.S. equity ETFs, which pulled in a significant $41.6 billion. Following them were international ETFs with inflows of $7.6 billion and U.S. fixed-income ETFs, which gathered $5.9 billion.

iShares Core S&P 500 ETF (IVV) emerged as the top asset creator, drawing in $17.3 billion in capital last week. It aims to track the S&P 500 Index and comprises 503 stocks, with each stock representing no more than 7% of the ETF's total assets. The iShares Core S&P 500 ETF has a heavy exposure to the information technology sector, while financials, healthcare, and consumer discretionary make up the next largest sectors.

A key feature of the ETF is its low cost, with only 3 basis points in annual fees. With an average daily trading volume of approximately 4.5 million shares, this fund has an assets under management (AUM) of $563 billion, earning it a Zacks ETF Rank of #1 (Strong Buy) and a medium risk outlook.

Schwab U.S. Dividend Equity ETF (SCHD) followed closely, gathering $7.8 billion. This ETF focuses on 104 U.S. companies known for their high dividend yields and consistent dividend payments. SCHD is designed to track the Dow Jones U.S. Dividend 100 Index, ensuring a well-distributed holding structure where no single stock makes up more than 5% of its assets.

The ETF charges annual fees of 6 basis points and maintains an AUM of $77.5 billion, trading around 14 million shares daily. SCHD holds a Zacks ETF Rank of #3 (Hold) with a medium risk outlook.

Vanguard S&P 500 ETF (VOO) attracted $3.7 billion in inflows, tracking the same index as the iShares counterpart. With 506 stocks, the fund maintains a strong emphasis on the information technology sector. Like IVV, VOO charges 3 basis points in fees, has an AUM of $619.5 billion, and boasts an average daily trading volume of about 5 million shares, equipping it with a Zacks ETF Rank of #1 (Strong Buy).

Vanguard High Dividend Yield ETF (VYM) also had a successful week, seeing inflows of $3.6 billion. This ETF targets companies with high dividend yields, tracking the FTSE High Dividend Yield Index. VYM holds 529 stocks, also charging 6 basis points in fees. It is particularly weighted towards financials, followed by industrials, healthcare, and consumer staples, and has an AUM of $63.3 billion, averaging around 1.3 million shares traded daily. It has a Zacks ETF Rank of #2 (Buy) with a medium risk outlook.

Finally, the Vanguard Mid-Cap ETF (VO) rounded out the top inflows, amassing $2.9 billion. This fund tracks the CRSP US Mid-Cap Index and holds 318 diverse stocks, with no individual stock exceeding 1.1% of its total assets. With a focus on industrials, technology, and financials, VO charges 4 basis points in fees and has an AUM of $76.4 billion, operating with a Zacks ETF Rank of #2 (Buy) and medium risk outlook.

Overall, the solid inflows come as the U.S. stock market showed signs of recovery after a brief dip into correction territory. The S&P 500 broke a four-week losing streak, climbing 0.5%. The positive developments are attributed to renewed investor confidence following the Federal Reserve's decision to keep interest rates unchanged, alleviating fears of a more aggressive rate hike. Chairman Jerome Powell's reassurances indicated that inflation is likely to be brief and recession risks remain low, contributing to the stock market's upward momentum and creating an optimistic environment for ETFs.

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