All asset classes were in the green
With the stock markets making new highs each day, investors are leaving no stone unturned to participate in the current bull rally. FactSet data revealed that investors added $16.6 billion into ETFs last week, which takes the year-to-date inflows to $50.6 billion. All of the asset classes’ witnessed positive inflows. US equity (C) (BAC) (GS) (JPM) continued to be the most popular asset class among investors. It added $8 billion, while international equity followed next with an addition of $5.4 billion. US fixed income saw positive inflows worth $559 million, while international fixed income added $951.6 million. Commodities had net additions of $865.9 million.
SPY was the clear winner
The SPDR S&P 500 ETF Trust (SPY), the world’s largest ETF, continued to receive huge inflows. After adding $7.8 billion the previous week, SPY added another $6.2 billion last week. SPY’s total AUM (assets under management) have reached $302.3 billion. The PowerShares QQQ Trust (QQQ) added $847 million, while the Vanguard S&P 500 ETF (VOO) received $800 million.
The outflows were mainly led by bond ETFs. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), and the iShares Core U.S. Aggregate Bond ETF (AGG) saw outflows of $612 million, $542 million, and $260 million, respectively.
The Fed will announce its interest rate decision on February 1, 2018. The US will release personal spending and personal income data for December. The US will also report the unemployment rate and non-farm payrolls data for January. The Eurozone, France, Russia, Spain, and Mexico will report their fourth-quarter GDP growth rates. The Eurozone’s economy expanded 0.6% in 3Q17.