ETF Asset Report of August
Zacks Investment Research | Aug 31, 2021 08:00AM ET
Wall Street delivered a decent performance last month with the S&P 500 and the Dow Jones adding 1.5% each and the Nasdaq Composite gaining about 3.1%. The Russell 2000 Index has advanced about 2.3% past month.
A few updates led to this result. Optimism about corporate earnings and upbeat economic data points and the passage of the infrastructure bill helped key U.S. equity indexes go higher. News of zero new cases in China and U.S. FDA’s full approval of Pfizer-BioNTech Covid-19 vaccine also led to the strength in the market.
However, taper talks were ripe in the month, which unsteadied the market momentum initially. But things ended the month on a better note with no new flare-up in taper talks and the moderate strength in the greenback.
In this scenario, we highlight ETF asset flows for the month of August (in the second quarter , boosted by robust demand and higher prices. The data outdid soaring COVID-19 cases in the United States.
Vanguard Total Stock Market ETF GLD lost $1.69 billion in assets. Invesco DB US Dollar Index Bullish Fund (UUP) is up 0.8% in the month. While taper talks and likely strength in the greenback weighed on the gold investing, rising stock markets also kept investors away from gold.
h3 Energy Out of Favor/h3BothEnergy Select Sector SPDR Fund (XLE (NYSE:XLE)) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP) lost about $587 million and $404.5 million in the month. Rising virus cases probably went against energy investing.
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