Investors' Favorite ETFs During Market Turmoil

ETFs received $7 billion in capital last week. According to etf.com, U.S. stock led the market higher with inflows of $7 billion, followed closely by $3.9 billion in U.S. repaired ETFs and $581 million in overseas fixed-income ETF.

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As a result, the top creation list last week was led by the SPDR S&P 500 ETF Trust SPY, SPDR Bloomberg 1-3 Month T-Bill ETF BIL, iShares Core S&P 500 ETF IVV, iShares 20+ Year Government Bond ETF TLT, and Invesco QQQ Trust QQQ.

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Despite a challenging week for the stock markets, there were inflows. The Dow Jones finished the week down 4.4%, its worst weekly showing since June. The Nasdaq lost 4.7% while the S&P 500 fell 4.5%. Following the largest bank failure that since global financial crisis, Wall Street suffered greatly. The largest bank collapse since the financial crisis of 2008 resulted from the internet lender Silicon Valley Bank closing its doors due to losses in its bond holdings, which sent shockwaves not just to the banking industry but also around the globe.

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However, a due to the competition rate hike is once again on the table as a result of recent waves of positive economic data as well as the pervasive inflation. During his hearing before the Senate Banking Committee, Fed Chair Jerome Powell adopted a hawkish stance and hinted that a rate hike of half a point would occur in March. The central bank, noting a recent spike in job growth and inflation after reducing the pace in recent months, would likely boost its benchmark interest rate higher than anticipated and possibly continue greater hikes (read: 4 Top Sector ETFs to Gain as Fed Signals Faster Rate Hikes).

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The February employment data, which shows that inflation may be moderating, was overshadowed by the upheaval in the bank stocks. Despite a solid 311,000 job increase in the U.S. economy in February, the rate of unemployment rose to 3.6% from 3.4%. The increase in average hourly pay from a year ago was 4.6% instead of the anticipated 4.8%. The 0.2% monthly increase fell short of market forecasts for a 0.4% increase.

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The ETFs are described in detail below:

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Trust for SPDR S&P 500 ETF (SPY)

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With $5.2 billion in money raised, the top asset creation is SPDR S&P 500 ETF Trust. With 503 equities in its basket, each representing no more than 7% of assets, it follows the S&P 500 Index. Information technology dominates the SPDR S&P 500 ETF Trust with a 28% portion, followed by healthcare, financials, and consumer discretionary, each with a double-digit allocation.

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Investors pay annual fees of 9 bps for the SPDR S&P 500 ETF Trust, which trades an average of 74.7 million shares each day. It has $353.6 billion in AUM and a Medium risk outlook, earning a Zacks ETF Rank #3 (Hold).

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1-3 Month T-Bill SPDR Bloomberg ETF (BIL)

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Last week, the SPDR Bloomberg 1-3 Month T-Bill ETF had inflows of $933.4 million. It aims to increase exposure to the US. Treasury securities with one to three months or less till maturity. It holds 19 securities and tracks the Bloomberg 1-3 Month U.S. Treasury Bill Index. Average maturity and modified duration both have values of 0.13 years.

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AUM for the SPDR Bloomberg 1-3 Month T-Bill ETF is $27.5 billion, and 7 million shares are traded on a daily average. It has a Zacks ETF Rank #3 with a Medium risk outlook, and its yearly expenses are 13 basis points.

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Core S&P 500 ETF from iShares (IVV)

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$964.6 million in capital has been accumulated by the iShares Core S&P 500 ETF. It contains 503 equities in its basket, each representing no more than 7% of assets, and tracks the S&P 500 Index. The information technology sector dominates the iShares Core S&P 500 ETF, with healthcare and financials filling out the next two slots with double-digit allocations apiece (read: Bank ETFs Tumble on Silicon Valley Bank Carnage).

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Investors pay 3 bps in annual fees for the iShares Core S&P 500 ETF, which trades 4 million shares on average each day. With a Zacks ETF Rank #2 (Buy) and a Medium risk outlook, it has an AUM of $293.9 billion.

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20+ Year Treasury Bond ETF from iShares (TLT)

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The capital raised for the iShares 20+ Year Treasury Bond ETF was $843.6 million. By following the performance of the ICE U.S. Treasury 20+ Year Bond Index, it offers exposure to long-term Treasury bonds. The yearly expenses for the iShares 20+ Year Treasury Bond ETF are 15 bps, and it owns 35 assets in its portfolio. It matures on average in 25.58 years, and its useful life is 17.73 years.

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With an AUM of $31.4 billion as well as a daily average volume of 18 million shares, TLT is one of the most widely used and liquid ETFs in the bond market. The Zacks ETF Rank of iShares 20+ Year Treasury Bond ETF is #4 (Sell), with a High risk outlook.

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Trust Invesco QQQ (QQQ)

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A $657 million capital inflow was observed in Invesco QQQ. By following the Nasdaq 100 Index, QQQ offers exposure to a 101 largest domestic and foreign non-financial listed companies on the Nasdaq. With a double-digit allocations, the top two companies dominate Invesco QQQ, with other companies holding no more than 6% of assets. Information technology accounts for 51.1% of the product, with communication services and consumer discretionary taking the final two positions (read: 5 Stocks That Powered Nasdaq ETF Last Week).

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With an AUM of $156.5 billion and a daily average volume of 48.7 million shares, Invesco QQQ is one of the biggest and most well-liked ETFs in the large-cap sector. Investors must pay 20 basis points (bps) in annual fees for QQQ, which has a Zacks ETF Rank #2 and a Medium risk outlook.