Top ETFs This Week As Markets Fall Amid New COVID-19 Concerns

The tug of war between optimism and pessimism continues for another week. Although markets eked out mild gains last week, and although there is now officially a bipartisan stimulus package, markets are dropping sharply to start the week due to profit taking and fears of a new and possibly more contagious strain of the coronavirus. This new virus strain, which was discovered in the UK, has caused some panic for both investors and governments, with stricter lockdowns and travel bans being implemented. Although the EU has now approved Pfizer’s PFE vaccine, and although Moderna’s MRNA vaccine has begun its official roll-out process in the U.S., negative sentiment for now is winning out. Stocks were going to consolidate sooner or later as well due to the furious rally they have been on since November. As 2020 comes to a close, we have reached an exciting, and potentially pivotal time in not only the markets, but also the pandemic. However, there is still much uncertainty and unpredictability. A good way to manage this risk and add diversity to your portfolio is through investing in ETFs. 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 four Attractive, three Neutral, one Unattractive, and one Top Short this week. 

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Attractive

SPDR S&P 500 ETF Trust (SPY)

The first Attractive ETF for this week is the SPDR S&P 500 ETF Trust SPY . This ETF is a benchmark ETF for tracking the performance of the S&P 500 as closely as possible, and is one of the largest ETFs in the world in terms of AUM. With $320,510,265,518.28, it is by far the largest ETF on this week’s list. Its fund flows have been inconsistent and mixed with a 90-day fund flow of ($9,225,772,368.45), 30-day fund flow of ($11,467,652,655.25), and 1-week fund flow of $2,593,278,160.05 . With a net expense ratio of 0.094%, it is also very cheap.

Vanguard Total Stock Market ETF (VTI)

The Vanguard Total Stock Market ETF VTI is our next Attractive ETF this week. 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 on the larger side with $200,209,756,266.09 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $14,251,280,063.16, 30-day fund flow of $6,238,752,329.18, and 1-week fund flow of $1,600,087,740.19. Its net expense ratio of 0.03% is also very cheap and reasonable.

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iShares Russell 2000 ETF (IWM)

The iShares Russell 2000 ETF IWM is our next Attractive ETF this week. This ETF aims to track the scorching hot small-cap Russell 2000 index, and has been on quite the run since November, outperforming ETFs tracking the larger indices. The ETF is mid-sized with $58,316,605,038.90 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $6,043,735,515.00, 30-day fund flow of $4,454,834,285.00, and 1-week fund flow of $2,911,856,545.00 . Its net expense ratio of 0.02% is also very cheap and reasonable.

iShares US Real Estate ETF (IYR)

The iShares US Real Estate ETF IYR is our final Attractive ETF this week. This ETF aims to give investors exposure to U.S. real estate companies and REITs, and is a very good option to diversify portfolios and gain direct access to the real estate sector. The ETF is smaller-sized with $6,179,336,835.00 AUM, and has seen consistent fund flows. The ETF has a 90-day fund flow of $2,553,908,990.00, a 30-day fund flow of $1,604,482,740.00, and a 1-week fund flow of $955,713,980.00. Its net expense ratio of 0.44% is very expensive, and by far the priciest on this week’s list.

Neutral

Vanguard Mid-Cap ETF (VO)

Our first Neutral ETF for this week is the Vanguard Mid-Cap ETF VO . This ETF aims to track an index of high-quality and diversified mid-cap stocks such as Moderna Inc., Snap Inc. SNAP , Twilio Inc TWLO ., Lululemon Athletica Inc. LULU , and DocuSign Inc DOCU . The ETF is medium sized in terms of AUM with $43,353,097,661.71 AUM. The ETF has also seen positive fund flows with a 90-day fund flow of $979,338,028.63, 30-day fund flow of $1,804,850,542.51 , and 1-week fund flow of $1,518,221,166.52 . The ETF also has a very decent 0.04% net expense ratio.

Vanguard Small-Cap ETF (VB)

Our next Neutral ETF for this week is the Vanguard Small-Cap ETF VB . This ETF aims to track an index of high-quality and diversified small-cap stocks, and has performed very strongly since November with holdings such as Zebra Technologies Corp. ZBRA , Etsy Inc., Teradyne Inc. TER , and HubSpot Inc HUBS . The ETF is medium sized in terms of AUM with $38,864,795,482.72 AUM. The ETF has also seen positive fund flows with a 90-day fund flow of $1,352,326,433.08, 30-day fund flow of $2,552,402,924.17, and 1-week fund flow of $1,867,891,310.33. The ETF also has a very attractive 0.05% net expense ratio.

Vanguard S&P 500 ETF (VOO)

The Vanguard S&P 500 ETF VOO is our final Neutral ETF this week. This ETF is our second ETF on the list that aims to follow the performance of the S&P 500 index as closely as possible. With $177,002,468,783.91 AUM, it is one of the larger ETFs on this week’s list. Its fund flows have also been inconsistent and mixed like the SPDR S&P 500 ETF with a 90-day fund flow of ($456,743,931.42), 30-day fund flow of ($3,429,144,379.05), and 1-week fund flow of $2,240,365,875.55. With a net expense ratio of 0.03%, it is also very cheap.

Unattractive

Vanguard Extended Market ETF (VXF)

The Vanguard Extended Market ETF VXF is our only Unattractive ETF this week. This ETF aims to hold an index of small and midsize companies, and provides a convenient way for investors to gain exposure to virtually all regularly traded U.S. stocks except for those that trade on the S&P 500. With $19,181,259,065.93 AUM, it is one of the smaller ETFs on this week’s list. Its fund flows have also been consistent with a 90-day fund flow of $6,332,266,254.62, 30-day fund flow of $5,812,503,113.18, and 1-week fund flow of $5,076,055,857.27. With a net expense ratio of 0.07%, it is also very decent.

Top Short

Vanguard Growth ETF (VUG)

The only Top Short this week is the Vanguard Growth ETF VUG . This ETF seeks to give investors exposure to large-cap growth stocks such as Apple AAPL , Microsof MSFT t, Amazon AMZN , Alphabet, and Facebook. The ETF has $68,636,568,980.28 AUM and is more on the medium-sized side. It has seen mixed fund flows, with a 90-day fund flow of ($80,587,582.04), 30-day fund flow of $1,144,812,097.51 , and 1-week fund flow of $973,494,227.20 . With a net expense ratio of .04%, this ETF is also extremely cheap.

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