Top ETFs To Buy As Markets Look To End Month With Record Highs
Recession, no problem. Markets hit new all-time highs last week, as the Dow finally reclaimed positive territory for the year. This was ahead of planned changes, adding more technology to the Dow in an effort to capture more of the “new economy” stocks and kick out some of the “old economy” stocks. Another highlight in the last week as the Federal Reserve changing how they tracked inflation, instead opting for “average inflation” metrics and allowing it to run hot for periods of time without raising rates – seen as bullish for stock markets. If you’re looking at what ETFs you should be buying and selling in this market, Q.ai’s deep learning algorithms have used Artificial Intelligence (“AI”) technology to identify the Top ETFs by AUM for the last week.
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iShares iBoxx $ High Yield Corporate Bond ETF (HYG), Industrial Select Sector SPDR Fund (XLI)
There are two Top Buy ETFs this week as noted by our deep learning algorithms, with the iShares iBoxx $ High Yield Corporate Bond ETF and the Industrial Select Sector SPDR Fund being noted. The both had massive inflows of funds over the last 30 and 90 days, at $1.157 billion and $592.6 billion, $6.659 billion and $1.871 billion, respectively. That brings their assets under management to $31.32 billion and $11.60 billion, making these funds big leaders in their categories and not starving for new additions by any means. The net expense ratio for the high yield fund looks a little elevated at 0.49%, but the SPDR fund has an attractive 0.13%. Both will continue to head to the upside, according to our deep learning algorithms.
iShares Russell 2000 ETF (IWM)
We have one Attractive rated ETF this week in iShares Russell 2000 ETF. The index fund tracks a broad range of assets and has seen mixed flows over the last 30 and 90 days, with inflows of $74.095 million in the last 30, versus an outflow of $560.37 million in the last 90. Although it should be noted, flows in the last week were a very respectable $748 million. The ETF carries an AUM of $41.596 billion and a competitive net expense ratio of 0.20%.
Financial Select Sector SPDR Fund (XLF), Vanguard Total Stock Market ETF (VTI), United States Oil Fund LP (USO), Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
There are four Neutral rated ETFs this week in the Financial Select Sector SPDR Fund, the Vanguard Total Stock Market ETF, the United States Oil Fund LP, and the Vanguard Intermediate-Term Corporate Bond ETF. The one week flows for the funds are $858.0 million, $600.4 million, $394.1 million, and $383.9 million. That trend continues with the last 30 day fund flows of $723 million, $2.022 billion, $91.8 million, and $1.10 billion. However, in the last 90-days, the results were mixed with -$730.8 million, +$4.58 billion, -$553 million, and +$8.16 billion, respectively. AUM for these funds are massive, with $18.89 billion, $166.3 billion, $4.57 billion, and $38.6 billion, so these holdings are not going away anytime soon. It will be interesting to watch how these four perform for the balance of the year, but our deep learning algorithms paired with AI technology do not have a preference one way or another.
Vanguard Total Bond Market ETF (BND), Vanguard Short-Term Corporate Bond ETF (VCSH), Vanguard Short-Term Bond ETF (BSV)
There were three Top Shorts this week in the Vanguard Total Bond Market ETF, the Vanguard Short-Term Corporate Bond ETF, and the Vanguard Short-Term Bond ETF. All three had impressive fund flows, alongside all the ETFs this week, with $627.7 million, $505.5 million, and $440.1 million coming into the holdings. The last 30 days have seen similar trends into these short-rated funds, with $2.24 billion, $1.84 billion, and $930 million flowing in that time period. In the last 90 days, investors have also been piling in with $6.97 billion, $5.218 billion, and $3.14 billion adding to the holdings. Assets under management are thriving for these funds, with $60.307 billion, $31.673 billion, and $26.533 billion for the three holdings, respectively. All three of the Top Short holdings have attractive net expense ratios, coming in at a cheap 0.05%, 0.07%, and 0.07%. It appears our AI systems thinks that the bond market is about to experience some pain in the short term here, after what has been an extremely strong year for the sector overall. Watch for yields rising in the coming weeks.
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