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ETF Asset Flow Roundup of Last Week

Last week acted as a breather for Wall Street in recent times as the joint efforts of the Fed and the U.S. government led to a market rally. The S&P 500, the Dow Jones and the Nasdaq gained 10.3%, 12.8% and 9.1% last week, respectively, on the $2-trillion U.S. stimulus support and the Fed’s announcement of corporate bond buying and unlimited QE. Several global markets too followed suit (read: US Stimulus Should Support These 7 ETFs).

Amid this scenario, we highlight ETF asset flows from Mar 22 to Mar 26 (per etf.com).

Investment-Grade Corporate Bond ETF Tops

Failing to contain the coronavirus-led acute market rout by its crisis-era policy launch, the Fed announced a fresh set of stimuli on Mar 23. The Fed added that the purchases of Treasury and mortgage securities are unlimited.

Among other steps, the Fed confirmed it would buy investment-grade exchange-traded funds that track the corporate bond market, a first for the U.S. central bank. However, the Fed cannot own more than 20% of any one ETF or 10% of individual corporate bonds.

The very announcement has led iShares iBoxx USD Investment Grade Corporate Bond ETF LQD to haul in about $4.68 billion in assets last week (read: All-Out Fed Support: Buy Highly-Rated Corporate Bond ETFs).

Gold Maintains Glow

Gold recorded their biggest weekly gain since late 2008 on Mar 27, probably on greenback weakness. Gold bullion SPDR Gold Trust GLD has raked in about $2.25 billion in assets.

S&P 500 Gathers Assets

Vanguard S&P 500 ETF VOO and SPDR S&P 500 ETF Trust SPY have added about $1.26 billion and $1.01 billion in assets, respectively, in the past week. As the S&P 500 has been extremely battered, investors tapped its cheaper valuation.

Short-Term Treasuries Gain Investors’ Favor

SPDR Bloomberg Barclays 1-3 Month T-Bill ETF BIL and iShares 1-3 Year Treasury Bond ETF SHY added about $1.38 billion and $1.08 billion, respectively. Liquidity is the need of the hour as financial markets have been going berserk in the past month. So, short-term bond ETFs like BIL and SHY that yield about 1.89% and 2.02% annually amid a very low yield environment garnered solid investor interest (read: Invest in These Cash-Like ETFs).

Emerging Markets Lose

Emerging markets ETF Vanguard FTSE Emerging Markets ETF VWO lost about $581.7 billion as investors fled the risky investing area. The greenback strength may have made investors cautious about emerging market investing.

Ultra-Short Income ETFs Shed Assets Too

PIMCO Enhanced Short Maturity Active ETF MINT and JPMorgan Ultra-Short Income ETF JPST shed about $704.7 million and $580 million in assets, respectively.

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SPDR Gold Shares (GLD): ETF Research Reports
 
SPDR S&P 500 ETF (SPY): ETF Research Reports
 
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD): ETF Research Reports
 
Vanguard S&P 500 ETF (VOO): ETF Research Reports
 
Vanguard FTSE Emerging Markets ETF (VWO): ETF Research Reports
 
SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL): ETF Research Reports
 
PIMCO Enhanced Short Maturity Active ETF (MINT): ETF Research Reports
 
iShares 1-3 Year Treasury Bond ETF (SHY): ETF Research Reports
 
JPMorgan Ultra-Short Income ETF (JPST): ETF Research Reports
 
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Zacks Investment Research
 
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