November ETF Asset Report
Hopes of the phase-one trade deal, moderate earnings and holiday shopping spree regulated the ETF world in November. Still, the value quotient prevailed in the market on worries of the fate of the U.S.-China trade deal. Against this backdrop, let’s see which ETFs raked in solid assets and which lost.
U.S. Equities Top
Wall Street scaled a fresh high in November. In fact, there was a broad-based rally in the market on hopes of a trade deal. No wonder, SPY accumulated about $3.96 billion in assets in the month. Vanguard S&P 500 ETF VOO and the Nasdaq-100-based QQQ accumulated about $1.85 billion and $1.43 billion in assets in November (read: 10 Top-Ranked ETFs Beating S&P 500 This Year).
Dividend & Quality Rule
Despite positive developments from the Fed and trade, concerns prevailed in the market. Investors should note that despite easy money policies by the Fed this year, economic data points were mixed. As a result, investors sought safety in quality and dividend ETFs. iShares Edge MSCI U.S.A. Quality Factor ETF (QUAL) garnered about $1.14 billion in assets while Vanguard High Dividend Yield ETF VYM amassed about $1.27 billion. As benchmark bond yields were on the higher side in November, investors tapped this high-yield dividend ETF (read: Top ETF Stories of November).
Financial Select Sector SPDR Fund (XLF) hauled in about $1.60 billion in assets in the month, thanks to steepening of the yield curve. A favorable earnings picture and compelling value in the segment led investors to flock to financials (read: 3 Reasons to Bet on Bank ETFs Now).
Developed Economies: Investors’ Favorite
Investors poured about $1.35 billion into assets iniShares MSCI Japan ETF (EWJ). iShares Core MSCI EAFE ETF (IEFA) grossed about $2.73 billion. Easy money policy in most developed economies probably led to the move.
Treasuries Lose Appeal
Because of a steady rise in the long-term U.S. treasury bond yields, treasury ETFs fell out of investors’ favor. iShares 20+ Year Treasury Bond ETF (TLT) shed about $1.04 billion in assets in the month. Schwab Short-Term U.S. Treasury ETF (SCHO) and iShares Short Treasury Bond ETF (SHV) also saw an asset loss of $579 million and $508.7 million, respectively.
Gold Loses Luster
Thanks to renewed risk-on sentiments, long-term yields rose in the month. This acted against non-interest-bearing assets like gold. Also, gold normally acts as a safe-haven asset and thus failed to maintain its mojo amid a soaring market. SPDR Gold Trust GLD lost about $932.8 million in assets in the month (read: Is it Time to Buy Gold ETFs?).
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SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
SPDR Gold Shares (GLD): ETF Research Reports
iShares Short Treasury Bond ETF (SHV): ETF Research Reports
Financial Select Sector SPDR Fund (XLF): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iShares MSCI Japan ETF (EWJ): ETF Research Reports
Schwab Short-Term U.S. Treasury ETF (SCHO): ETF Research Reports
Vanguard High Dividend Yield ETF (VYM): ETF Research Reports
iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core MSCI EAFE ETF (IEFA): ETF Research Reports
iShares Edge MSCI USA Quality Factor ETF (QUAL): 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.