ETFs are a huge part of the investing landscape, having exploded in popularity since the 2019 ETF rule. The funds offer greater tax efficiency, transparency, and tradability than their mutual fund counterparts. In fact, this year has already seen ETFs add more than $600 billion YTD — a massive influx even amid global instability and market volatility.
Key Takeaways:
- Equities and bond ETFs led the way in YTD flows, adding some serious assets.
- The top five funds were largely core allocation offerings, with some notable absences.
- ETF flows continue despite broader investor concerns about geopolitical risk and volatility.
According to FactSet data as of April 22nd, $601 billion have come into ETFs. Equity ETFs account for $393 billion of that total, while roughly $193 billion have come into fixed income ETFs. Alts ETFs followed at a distant third top contender earning $13 billion YTD.
Among these categories, some particular ETFs have stood out as the top performing winners. The Vanguard S&P 500 ETF (VOO ) led the way with $43 billion in YTD flows on net. VOO charges just three basis points to track the S&P 500 index. It has returned 4.2% YTD, outperforming the ETF Database Large Cap Equities Category average for the period.
Three of the top five ETFs for YTD flows were equities ETFs, with two primarily focused on fixed income. Along with VOO, the State Street SPDR Global Portfolio S&P 500 ETF (SPYM) and the Vanguard Total Stock Market ETF (VTI ) were among the top five YTD flows performers as of April 22.
SPYM added $32.6 billion YTD while VTI picked up $18.6 billion in that time. Both provide broad market tracking, charging 2 and 3 basis point fees, respectively. SPYM returned 4.2% YTD and VTI returned 4.6%, according to ETF Database Category data.
The two fixed income ETFs include the ProShares GENIUS Money Market ETF (IQMM)and the iShares 0-3 Month Treasury Bond ETF (SGOV ). IQMM has added $23 billion and charges 15 basis point fees, while SGOV brought in $15.6 billion with a 9 basis point fee charge. Notably, IQMM’s massive inflows come after only launching this year as the first ETF to follow the GENIUS Act’s requirements for U.S. Treasury bills.
See more: Are SMIDcaps Delivering? TMSL up 8% YTD
Looking ahead, these sectors are well-positioned to maintain their momentum and continue attracting significant inflows. Despite global instability, their tradability and tax efficiency make them strong options for investors looking to refine their portfolio exposure. For investors particularly interested in bond and equity strategies, these ETFs are all viable contenders that will continue to stand out in popularity.
For more news, information, and strategy, visit ETFdb.
