For another week, rising bond yields and inflation fears weighed on markets. However, last week did not end all that badly. Time will tell if the rotation into recovery names and out-of-growth names will continue this week, but it’s worth monitoring. Stocks have indeed started off the week on a high note thanks to stimulus optimism and hopes that bond yields will eventually stabilize after hedge fund manager David Tepper’s comments. Plus, the pandemic looks to be easing coupled with an improving vaccine rollout. However, be mindful of inflation — it’s looking as if it may be a mounting risk. Based on all of this news, we’ve put together a list of trending ETFs for the week that can help you diversify your portfolio and potentially mitigate risks. Q.ai’s deep learning algorithms have identified several ETFs to look out for this week based on their fund flows over the last 90-days, 30-days, and 7-days. We have identified one Top Buy, two Attractive, one Neutral, and two Unattractive. We also decided to feature two interesting Unrated ETFs this week as well.
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Vanguard Value ETF (VTV)
The lone Top Buy this week is the Vanguard Value ETF VTV . With the rotation out of growth into value over the last few weeks, this ETF will certainly garner attention. This ETF aims to track an index of the largest cap value stocks in the U.S., such as Johnson & Johnson JNJ , Berkshire Hathaway Inc BRK.B , JPMorgan Chase & Co JPM , Procter & Gamble Co PG , and UnitedHealth Group Inc UNH . The ETF is mid-sized with $65,982,597,421.82 AUM, and has seen consistently positive fund flows. The ETF has a 90-day fund flow of $4,362,701,754.10, 30-day fund flow of $1,948,855,461.74, and 1-week fund flow of $783,105,770.25. The ETF is very attractive to own with a cheap net expense ratio of 0.04%.
iShares 20+ Year Treasury Bond ETF (TLT)
With rising bond yields becoming the talk of the market, our first Attractive ETF this week certainly has relevance — the iShares 20+ Year Treasury Bond ETF TLT . Remember: Rising yields mean cheaper bond prices. The goal of this ETF is fairly straightforward — it’s to track the investment results of an index composed of long-term U.S. Treasuries with more than 20 years of remaining maturities. The ETF is small to medium sized with $15,447,938,940.00 AUM. It has seen mixed fund flows, with a 90-day fund flow of -$471,299,750.00, 30-day fund flow of -$343,136,020.00, and 1-week fund flow of $784,541,250.00. Its net expense ratio of 0.15% is also okay.
iShares Russell 2000 ETF (IWM)
The iShares Russell 2000 ETF IWM is our next Attractive ETF this week. The ETF aims to track the small-cap Russell 2000 index. With optimism of a reopening economy, and a massive stimulus package that just passed the Senate, the Russell 2000 has surged, and could continue to surge. This ETF as a result, has performed strongly. The ETF is mid-sized with $67,784,833,923.00 AUM. It has seen positive fund flows, with a 90-day fund flow of $6,026,070,300.00, 30-day fund flow of $4,370,277,250.00, and 1-week fund flow of $736,655,430.00. Its net expense ratio of 0.2% is okay.
Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF VTI is our lone Neutral ETF. This ETF aims to track the broader stock market, across all indices. The ETF also includes stocks of all cap sizes, and both growth stocks and value stocks. The ETF is the largest on our list this week in terms of AUM with $219,080,681,441.28 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $11,758,671,303.58, 30-day fund flow of $3,465,513,824.33, and 1-week fund flow of $913,345,036.59. Its net expense ratio of 0.03% is also very cheap and reasonable.
Vanguard S&P 500 ETF (VOO)
The first Unattractive ETF for this week is the Vanguard S&P 500 ETF VOO . This ETF aims to mirror the performance of the S&P 500 as closely as possible. With $198,021,270,205.46 AUM, it is one of the larger ETFs on this week’s list. Its fund flows have been consistently positive with a 90-day fund flow of $8,644,671,551.02, 30-day fund flow of $12,267,084,215.62, and 1-week fund flow of $822,911,569.88. With a net expense ratio of 0.03%, it is also very cheap.
iShares S&P 500 ETF (IVV)
The iShares S&P 500 ETF IVV is our other Unattractive ETF this week, and our other ETF that looks to mirror the S&P 500. With $254,778,120,214.00 AUM, it is the largest ETF on this week’s list. Its fund flows have been consistently positive with a 90-day fund flow of $3,433,860,010.00, 30-day fund flow of $10,053,287,920.00, and 1-week fund flow of $1,261,160,465.00. With a net expense ratio of 0.03%, it is also very cheap.
Vanguard FTSE Emerging Markets ETF (VWO)
The Vanguard FTSE Emerging Markets ETF VWO is our first Unrated ETF this week. The Vanguard FTSE Emerging Markets ETF aims to invest in emerging market-based equities with exposure to countries such as China, Brazil, Taiwan, and South Africa. The ETF is mid-sized with $80,800,254,930.00 AUM. It has also seen consistently positive fund flows with a 90-day fund flow of $4,446,806,481.05, 30-day fund flow of $2,424,673,885.01, and 1-week fund flow of $1,114,449,913.69. The net expense ratio of .12% is also fairly reasonable.
Vanguard FTSE All-World ex-US Small-Cap ETF (VSS)
The Vanguard FTSE All-World ex-US Small-Cap ETF VSS is our other Unrated ETF this week. The ETF that aims to give investors easy exposure to international markets- both developed and emerging. The ETF’s holdings include approximately 3,300 stocks of companies located in more than 46 countries. The ETF has $6,295,845,503.52 AUM and has seen consistently positive fund flows. It has a 90-day fund flow of $1,197,068,985.02, 30-day fund flow of $924,028,773.93, and 1-week fund flow of $745,243,399.84. The net expense ratio of 0.12% is very cheap, too.
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