November ETF Asset Report
Zacks Investment Research | Dec 04, 2019 01:00AM ET
Wall Street saw a stellar November, with SPDR S&P 500 ETF Trust (ASX:SPY) adding 3.3% and SPDR Dow Jones Industrial Average (NYSE:DIA) ETF Trust ( (TSXV:DIA) ) and Invesco QQQ Trust QQQ rising about 4.1% each.
Hopes of the phase-one trade deal, moderate earnings and holiday shopping spree regulated the ETF world in November. Still, the value quotient prevailed in the market on worries of the fate of the U.S.-China trade deal. Against this backdrop, let’s see which ETFs raked in solid assets and which lost.
U.S. Equities Top
Wall Street scaled a fresh high in November. In fact, there was a broad-based rally in the market on hopes of a trade deal. No wonder, SPY accumulated about $3.96 billion in assets in the month. Vanguard S&P 500 ETF 10 Top-Ranked ETFs Beating S&P 500 This Year ).
Dividend & Quality Rule
Despite positive developments from the Fed and trade, concerns prevailed in the market. Investors should note that despite easy money policies by the Fed this year, economic data points were mixed. As a result, investors sought safety in quality and dividend ETFs. iShares Edge MSCI U.S.A. Quality Factor ETF (Top ETF Stories of November ).
Financials Prevail
Financial Select Sector SPDR Fund (3 Reasons to Bet on Bank ETFs Now ).
Developed Economies: Investors’ Favorite
Investors poured about $1.35 billion into assets iniShares MSCI Japan ETF (IEFA ) grossed about $2.73 billion. Easy money policy in most developed economies probably led to the move.
Treasuries Lose Appeal
Because of a steady rise in the long-term U.S. treasury bond yields, treasury ETFs fell out of investors’ favor. iShares 20+ Year Treasury Bond (NASDAQ:TLT) ETF ( (NZ:TLT) ) shed about $1.04 billion in assets in the month. Schwab Short-Term U.S. Treasury ETF ( (CSE:SCHO) ) and iShares Short Treasury Bond ETF ( (ASX:SHV) ) also saw an asset loss of $579 million and $508.7 million, respectively.
Gold Loses Luster
Thanks to renewed risk-on sentiments, long-term yields rose in the month. This acted against non-interest-bearing assets like gold. Also, gold normally acts as a safe-haven asset and thus failed to maintain its mojo amid a soaring market. SPDR Gold Trust (P:GLD) (TSXV:GLD) lost about $932.8 million in assets in the month (read: Is it Time to Buy Gold ETFs? ).
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