5 ETFs Investors Favorite Last Week

Last week, ETFs of various types attracted a remarkable $62.5 billion in capital, bringing the total inflows for the year to $292 billion. U.S. equity ETFs led this charge with an impressive $41.6 billion in inflows, followed by international ETFs at $7.6 billion, and U.S. fixed-income ETFs with $5.9 billion.

iShares Core S&P 500 ETF (IVV - Free Report), Schwab U.S. Dividend Equity ETF (SCHD - Free Report), Vanguard S&P 500 ETF (VOO - Free Report), Vanguard High Dividend Yield ETF (VYM - Free Report), and Vanguard Mid-Cap ETF (VO - Free Report) topped the list of most favored ETFs last week.

The surge in inflows coincided with a rebound in the U.S. stock market after a short correction period. The S&P 500 broke a four-week losing streak caused by concerns over trade policies and potential recession, making a recovery of 0.5%. The Dow Jones rose by 1.2%, while the Nasdaq Composite Index saw a slight increase of 0.2%.

Investor confidence received a boost following the Federal Reserve's recent meetings, where Chair Jerome Powell announced that interest rates would remain unchanged and reiterated the possibility of two rate cuts later this year. This news eased investor fears, igniting a rally in the stock market.

Despite expectations for higher inflation and slower economic growth, Powell reassured investors that the impact of tariffs on inflation would likely be temporary and that the risk of recession appears low. He remarked, "The economy seems to be healthy."

Top ETFs Pulling in Capital

iShares Core S&P 500 ETF (IVV - Free Report)

As the top asset creator, the iShares Core S&P 500 ETF managed to attract $17.3 billion in capital. It aims to track the S&P 500 Index and contains 503 stocks, each making up no more than 7% of the total assets. This ETF is heavily invested in the information technology sector, with financials, healthcare, and consumer discretionary holding significant positions as well.

With an annual fee of just 3 basis points, the iShares Core S&P 500 ETF trades around 4.5 million shares daily and boasts an asset under management (AUM) of $563 billion, earning a Zacks ETF Rank of #1 (Strong Buy) with a medium risk outlook.

Schwab U.S. Dividend Equity ETF (SCHD - Free Report)

Next on the list, the Schwab U.S. Dividend Equity ETF accumulated $7.8 billion in assets. It focuses on 104 high-dividend-yielding U.S. companies known for consistent dividend payments, evaluated by financial ratios and liquidity. This ETF tracks the Dow Jones U.S. Dividend 100 Index, ensuring well-distributed investments with no single component exceeding 5% of the assets.

The Schwab U.S. Dividend Equity ETF has an AUM of $77.5 billion and a low annual fee of 6 basis points, trading around 14 million shares per day, and it has received a Zacks ETF Rank of #3 (Hold), considered to have a medium risk outlook.

Vanguard S&P 500 ETF (VOO - Free Report)

The Vanguard S&P 500 ETF raised $3.7 billion last week. Similar to IVV, it tracks the S&P 500 Index and contains 506 stocks with individual weights of no more than 7.2%. Heavy investments in the information technology sector are also found here, along with notable allocations in financials, healthcare, and consumer discretionary sectors.

This ETF charges investors 3 bps in annual fees, has an AUM of $619.5 billion, and trades about 5 million shares daily, earning it a Zacks ETF Rank of #1 (Strong Buy) with a medium risk outlook.

Vanguard High Dividend Yield ETF (VYM - Free Report)

The Vanguard High Dividend Yield ETF experienced inflows of $3.6 billion last week. It aims to offer exposure to companies with high dividend yields, tracking the FTSE High Dividend Yield Index. This ETF comprises 529 stocks and has an annual fee of 6 bps, with a strong emphasis on financial stocks, alongside significant holdings in industrials, healthcare, and consumer staples.

The VYM boasts an AUM of $63.3 billion and trades about 1.3 million shares daily, currently holding a Zacks ETF Rank of #2 (Buy), indicating a medium risk outlook.

Vanguard Mid-Cap ETF (VO - Free Report)

Finally, the Vanguard Mid-Cap ETF attracted $2.9 billion in capital. Tracking the CRSP US Mid-Cap Index, this ETF encompasses a diversified portfolio of 318 stocks, with each holding no more than 1.1% of the total assets. It is prominently invested in sectors such as industrials, technology, financials, and consumer discretionary.

With an AUM of $76.4 billion, it charges 4 bps in annual fees and has a Zacks ETF Rank of #2 (Buy) with a medium risk outlook.

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