Market Jitters and Economic Optimism: Top 5 ETFs That Attracted Investors Attention Last Week

Last week, exchange-traded funds (ETFs) in various categories attracted a significant amount of capital, with $22.7 billion flowing into them, pushing year-to-date inflows to $462 billion. U.S. equity ETFs led the way with $9.1 billion in inflows, followed by $4 billion each for international equity and U.S. fixed-income ETFs. The top creation list last week was dominated by Vanguard S&P 500 ETF (VOO), SPDR S&P 500 ETF Trust (SPY), iShares Russell 2000 ETF (IWM), Vanguard Total Bond Market ETF (BND), and Vanguard Tax-Exempt Bond ETF (VTEB). Despite the jitters caused by the escalating conflict between Israel and Iran, Wall Street experienced a drop last week. The Dow Jones fell 1.3%, the S&P 500 dipped 0.4%, and the Nasdaq Composite Index lost 0.6%. The tensions in the Middle East escalated after Israel launched a wave of airstrikes on Iran, triggering a sharp sell-off across global markets. Gold surged on rising safe-haven demand as the yellow metal serves as a hedge against market turmoil and is often used as a means of preserving wealth during times of financial and political uncertainty. In the latest data, Americans have started to feel optimistic about the economy as the initial shock from steep tariffs begins to wear off and inflation pressures ease. U.S. consumer sentiment climbed in June for the first time in six months, offering a glimmer of optimism amid lingering policy uncertainty. According to preliminary data from the University of Michigan’s Surveys of Consumers, the Consumer Sentiment Index jumped to 60.5, up from 52.2 in May and well above economists’ expectations of 53.6. Among the top ETFs, Vanguard S&P 500 ETF (VOO) was the top asset creator, pulling in $14.4 billion in capital. It tracks the S&P 500 Index and holds 506 stocks in its basket, each accounting for no more than 6.8% of the assets. Vanguard S&P 500 ETF is heavily weighted towards the information technology sector, while financials and consumer discretionary round off the next two spots with a double-digit allocation each. It charges investors 3 bps in annual fees and has an AUM of $684.9 billion, trading in an average daily volume of 7 million shares. VOO sports a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook. SPDR S&P 500 ETF Trust (SPY) accumulated $4.9 billion in its asset base, tracking the S&P 500 Index and holding 503 stocks in its basket, with each accounting for no more than 7% of the assets. SPDR S&P 500 ETF Trust is heavily weighted towards the information technology sector with a 32.2% share, while financials and consumer discretionary round off the next two spots with a double-digit allocation each. It charges investors 9 bps in annual fees and trades in an average daily volume of 71 million shares, with an AUM of $619