Big ETF Inflows of Last Week: VOO, QQQ & More
ETFs across various categories pulled in $31.1 billion in capital last week, pushing year-to-date inflows to $400 billion. This has put 2025 on track to be one of the biggest years ever for ETF demand.U.S. equity ETFs led the way with $23.3 billion in inflows, followed by $3.81 billion in international ETFs and $3.79 billion in U.S. fixed-income ETFs. Vanguard S&P 500 ETF VOO, Invesco QQQ Trust QQQ, iShares 20+ Year Treasury Bond ETF TLT, Vanguard Mid-Cap ETF VO and Invesco NASDAQ 100 ETF QQQM dominated the top creation list last week.The solid inflows came on the stunning S&P 500 comeback. The S&P 500 returned to positive territory for 2025 last week, wiping out all its losses after the index tumbled to near bear market levels on April 8, courtesy of President Trump's aggressive tariff plans. The S&P 500 jumped more than 5% last week while the Dow Jones Industrial Average gained more than 3%. The tech-heavy Nasdaq Composite also climbed more than 7% (read: S&P 500 Makes the Fastest Recovery Since 1982: 5 Best ETFs).The 90-day U.S.-China trade truce and strong earnings, especially from tech giants, renewed market optimism. The trade optimism more than offset the weak consumer data, which revealed that consumer sentiment hit the second-lowest reading on record.The inflation data also supported the bullish sentiment. U.S. inflation in April cooled to the lowest level since February 2021. The Consumer Price Index, which tracks a variety of costs throughout the economy, rose 2.3% year over year in April, down slightly from 2.4% in March. The softer-than-expected data bolstered the case for the easing by the Federal Reserve.We have detailed the ETFs below.Vanguard S&P 500 ETF (VOO)Vanguard S&P 500 ETF is the top asset creator, pulling in $4.8 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 6.8% of the assets. Vanguard S&P 500 ETF is heavy on the information technology sector, while financials, healthcare and consumer discretionary round off the next three spots with a double-digit allocation each.Vanguard S&P 500 ETF charges investors 3 bps in annual fees. It has an AUM of $654.5 billion and trades in an average daily volume of 6 million shares. VOO sports a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: Moody's Downgrades U.S. Rating: What's Next for S&P 500 ETFs?).Invesco QQQ Trust (QQQ)Invesco QQQ Trust saw an inflow of $4.6 billion in its asset base. It provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $329.3 billion and an average daily volume of 42.5 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.iShares 20+ Year Treasury Bond ETF (TLT)iShares 20+ Year Treasury Bond ETF has gathered $2.1 billion in its asset base. It provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Years Bond Index. iShares 20+ Year Treasury Bond ETF holds 41 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.48 years and an effective duration of 15.63 years. TLT is one of the most popular and liquid ETFs in the bond space, with an AUM of $48.7 billion and an average daily volume of 32 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #4 (Sell) with a High risk outlook.Vanguard Mid-Cap ETF (VO)Vanguard Mid-Cap ETF has gathered $1.4 billion in its asset base. It offers exposure to the mid-cap segment of the broad U.S. stock market and tracks the CRSP US Mid-Cap Index.VO holds a well-diversified portfolio of 307 stocks, with each firm holding no more than 1.2% of the total assets. Vanguard Mid-Cap ETF has key holdings in industrials, financials, consumer discretionary and technology. With an AUM of $81 billion, Vanguard Mid-Cap ETF charges investors 4 bps in fees per year and trades in an average daily volume of 869,000 shares. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Here's Why You Should Buy Top-Ranked Mid-Cap ETFs Now).Invesco NASDAQ 100 ETF (QQQM)Invesco NASDAQ 100 ETF saw an inflow of $1.2 billion. It is identical to QQQ tracking the NASDAQ-100 Index but comes with lower annual fees of 15 bps. It holds 106 securities in its basket, with a higher concentration on the top three firms. Invesco NASDAQ 100 ETF accumulated $47.7 billion in its asset base. It trades in an average daily volume of 3 million shares and has a Zacks ETF Rank #3.
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iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports
Invesco QQQ (QQQ): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
Vanguard Mid-Cap ETF (VO): ETF Research Reports
Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports
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34 minutes ago
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These indicators are updated weekly or daily and have shown a strong correlation with economic activity. Indeed, other indicators are crucial, but they are typically only available on a monthly basis, sometimes with a significant time lag. Despite the economic data remaining resilient, consensus estimates of 2025 US GDP growth remain well below the levels seen earlier in the year. Economists generally expect the drag from tariffs to slow economic growth in the second half of the year. Consensus US GDP Growth Forecasts Baa corporate bond data has a long history and provides a look at the 'typical' credit quality of companies, as Baa credit rating is the lowest level of investment-grade bonds. The spread is the yield that investors demand beyond US Treasury bond rates to compensate for the default risk associated with buying corporate bonds. These spreads expand when investors worry that more bond defaults could be on the horizon, typically driven by deteriorating economic conditions. 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Financial Conditions The more economically sensitive cyclical stocks have recently been outperforming the less economically sensitive defensive stocks. The improved performance of cyclical stocks suggests that the economic growth scare is waning. Cyclical Versus Defensive Stocks The 10-year Treasury minus 2-year yield is arguably the most well-known predictor of recession. Historically, when the yield on the US 10-year Treasury falls below the 2-year yield, also known as yield curve inversion, a recession is likely to follow. Since the 1970s, a yield curve inversion has occurred before every recession. The only blemishes on its record are the 1998 and mid-2022 inversions, which did not produce subsequent economic recessions. The US economy did see a significant slowdown in the first half of 2022 but rebounded in the second half. Unfortunately, even when the signal is correct, it has widely variable lead and lag times. 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Prime-age employment to population ratio fell month-over-month, but using the three-month average to remove volatility, it held steady. The trend appears to be flat to lower, which adds some concern to the outlook. Prime-Age Employment-To-Population Ratio Overall, job growth is adequate, with the labor market bending lower but not yet breaking. Markets reacted favorably to the monthly jobs report on Friday, indicating less worry about the economic outlook, with US Treasury yields and stocks moving higher. Lastly, the betting market has seen a steep drop in the odds of a recession in 2025. Betting odds move much more quickly than consensus estimates and should be considered more accurate since real dollars are at stake regarding the outcome. 2025 US Recession Betting Odds Wednesday's May consumer inflation (CPI) reading will be closely watched as some tariff-related price increases are expected to be reflected. On the other hand, some other price decreases should keep the headline inflation growth in check. Consensus expects a 2.5% year-over-year rate, up from 2.3% last month. The Cleveland Fed's estimate for May CPI is a bit lower at 2.4%. US CPI Inflation Estimate The University of Michigan consumer sentiment reading on Friday will be notable. Consumer sentiment plummeted with the announcement of the wide-ranging tariffs on Liberation Day. While economic activity has not followed suit, the sharp plunge in sentiment has raised concerns about an eventual downturn. A rebound in sentiment would be welcome and could help alleviate those concerns. Stocks have rebounded as the odds of a recession have fallen. There is still room for the odds to fall further, but the risk remains that they could rise again in the event of a reignition of a hotter trade war. 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