5 trending ETFs of 2021 driving record global inflows of $ 1 billion

AAmid the boom in the stock market, the global ETF industry is booming, breaking new records in terms of inflow. Investors invested more than $ 1 trillion in cash for the first time in ETFs this year through the end of November, surpassing inflows of $ 735.7 billion last year, per Morningstar. This pushed global ETF assets to nearly $ 9.5 trillion, more than double the value at the end of 2018.

According to ETFGI, listed ETFs and ETPs around the world generated a record $ 1.14 trillion in net inflows in the first 11 months of 2021. About $ 788.9 billion of total inflows came from Equity ETFs, followed by $ 211.1 billion of fixed income inflows. Vanguard S&P 500 ETF VOO, VAnguard Total Stock Market ETF VTI, IShares Core S&P 500 ETF IVV, Invesco Trust QQQ QQQ and SPDR S&P 500 ETF Trust SPY tops the asset flow list this year.

Record ETF inflows are due to the rising stock market and the lack of high yielding alternatives. The low-cost passively managed US funds that track indices managed by Vanguard Group, BlackRock and State Street, which together control over 75% of all US ETF assets, have been the biggest fundraisers this year. Passively managed funds are attractive due to their unique strategies, creativity, transparency, diversification benefits, improved tax skills, low turnover and, of course, low cost.

Additionally, launches of new actively managed funds in the space with narrow themes or an unfilled niche market have driven demand. More than half of the 380 record ETFs launched in the United States this year are actively managed, according to FactSet. In addition, ETFs that hold inflation-protected bonds are also benefiting from renewed investor interest due to rising inflation. However, these still only represent a small proportion of total fundraising (read: 5 ETFs benefiting from high inflation).

The global ETF / ETP industry numbered 9,700 products, with 19,606 listings and $ 9.92 trillion in AUM from 596 vendors listed on 79 exchanges in 62 countries as of the end of November.

Let’s take a closer look at the five ETFs below:

Vanguard S&P 500 ETF (VOO)

The Vanguard S&P 500 ETF has accumulated capital of $ 48.4 billion. It follows the S&P 500 index and holds 512 stocks in its basket, each representing over 6.6% of assets. The Vanguard S&P 500 ETF weighs heavily in the IT sector, while consumer discretionary, healthcare, financials and communications services round out its next four spots with double-digit allocation each.

Vanguard S&P 500 ETF charges investors 3 basis points of annual fees and trades an average daily volume of 4.5 million shares. It has $ 272.3 billion in assets under management and a Tier 2 (buy) Zacks ETF with a medium risk outlook (read: Forget Omicron: Hit S&P 500 ETFs For At Least 6% Gains In 2022 ).

Vanguard Total Stock Market ETF (VTI)

Vanguard Total Stock Market ETF has raised $ 38.9 billion in capital, bringing its total assets to $ 294.1 billion. It provides exposure to the general stock market by tracking the CRSP US Total Market Index. The Vanguard Total Stock Market ETF holds a large basket of 4,156 well-diversified stocks with key holdings in the tech, consumer discretionary, industrials, healthcare and financials sectors.

Vanguard Total Stock Market ETF charges investors 3 basis points per year in fees and trades an average daily volume of 3.3 million shares. VTI has a Zacks ETF Rank # 2 with a medium risk outlook.

IShares Core S&P 500 ETF (IVV)

The iShares Core S&P 500 ETF has raised $ 26.5 billion in capital. It follows the S&P 500 index and has 505 stocks in its basket, each representing no more than 7% of the assets. IVV weighs heavily in the information technology sector, while healthcare, consumer discretionary, finance and communications round out its next four spots with a double-digit allocation each.

The iShares Core S&P 500 ETF charges investors 3 basis points of annual fees and trades an average daily volume of 4.1 million shares. It has assets under management of $ 333.8 billion and a Zacks ETF Rank # 2 with a medium risk outlook.

Invesco Trust QQQ (QQQ)

Invesco QQQ raised about $ 17.8 billion in its asset base last week. QQQ provides exposure to the 102 largest national and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 index. Invesco QQQ is heavily focused on the top two companies with a double-digit allocation, while the other companies do not hold more than 7.4% of assets. The product is also heavily IT-oriented at 51.4%, while communications services and consumer discretionary round out the next two spots (read: 5 tech stocks that led the Nasdaq ETF rally) .

Invesco QQQ is one of the largest and most popular large-cap ETFs, with assets under management of $ 209.9 billion and average daily volume of 41.7 million shares. QQQ charges investors a 20 basis points annual fee and has a Zacks Rank # 2 ETF with a medium risk outlook.

SPDR S&P 500 ETF Trust (SPY)

SPDR S&P 500 ETF Trust topped the creation of asset flows last week, raising $ 15 billion in capital. It follows the S&P 500 index and has 505 stocks in its basket, each representing no more than 7% of the assets. SPDR S&P 500 ETF Trust looms large in the information technology sector, while healthcare, consumer discretionary, financials and communications services round out the next four spots with double-digit allocation each.

SPDR S&P 500 ETF Trust charges investors 9 basis points of annual fees and trades an average daily volume of 60.4 million shares. It has assets under management of $ 437.7 billion and a Zacks ETF Rank # 2 with a medium risk outlook.

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Invesco QQQ (QQQ): ETF Research Reports

SPDR S&P 500 ETF (SPY): ETF Research Reports

Vanguard Total Stock Market ETF (VTI): ETF Research Reports

Vanguard S&P 500 ETF (VOO): ETF Research Reports

IShares Core S&P 500 ETF (IVV): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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